JoS. A. Bank Earns 47 Cents Per Share

For its fiscal Q3, JoS. A. Bank Clothiers ($JOSB) reported earnings of 47 cents per share. That’s nine cents per share below Wall Street’s forecast. I expect the stock to have a rough day today.

JOSB’s top-line growth was pretty decent. Total sales rose by 11.1% and comparable store sales rose by 4.8%.

So what went wrong? Joe Bank’s profit margins got squeezed and the company also blamed Hurricane Sandy:

“We are pleased that we were able to deliver comparable store sales growth and Direct Marketing segment sales growth during the third quarter of fiscal year 2012. However, we are disappointed that our net income declined versus the same period a year ago. We had a decline in our operating income margin due to additional markdowns and promotional activity which were needed to drive these sales. Also, Hurricane Sandy, which hit along the East Coast where the majority of our largest volume regions are located, negatively impacted third quarter sales, particularly when we ran a big promotion right at the end of the quarter,” stated R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “The hurricane, along with the distractions of the national election, continued to have a negative impact in the first weeks of November. In November, for the start of the fourth quarter, comparable store sales were down. With the critical month of December still ahead of us, and continued pressure on margins, we remain cautious for the outcome of the fourth quarter,” continued Mr. Black.

Posted by on November 28th, 2012 at 8:11 am


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