CORRECTED - CORRECTED-UPDATE 1-Casual Male Q4 profit falls

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March 25 (Reuters) - Specialty retailer Casual Male Retail Group Inc CMRG.O reported a lower fourth-quarter profit, hurt by a drop in customer traffic and accelerated promotional discounts.

"During the most recent quarter, the environment for men's apparel was extremely challenging and Casual Male was affected by a reduction in store traffic of 7.5 percent," Chief Executive David Levin said in a statement.

The company, which sells apparel for big and tall men, posted a net income from continuing operations of $1.3 million, or 3 cents a share, compared with $8.4 million, or 19 cents a share, a year ago.

Total sales fell 7.5 percent to $133.9 million. Same-store sales were down 0.3 percent for the period.

Analysts on average had expected a profit of 15 cents a share, excluding exceptional items, on revenue of $137.1 million, according to Reuters Estimates.

For fiscal 2008, the Canton, Massachusetts-based company sees earnings of 25 cents to 30 cents a share, on total sales of $470 million to $480 million .

Analysts expect earnings of 29 cents a share, excluding exceptional items, on revenue of $488.9 million.