JoS. A. Bank Q2 Profit Misses Estimates

(RTTNews) - Retailer JoS. A. Bank Clothiers, Inc. (JOSB) Thursday reported a fall in second-quarter profit, as net sales declined about 11 percent, with a drop in comparable store sales. Earnings per share missed analysts' expectations, while revenues were slightly above view.

According to the company, sales were disappointing in the quarter, as customers were not responding as well to some of its highly promotional marketing campaigns as they did in the prior year. However, it experienced a good start in the third quarter, with increase in total sales, comparable store sales and Direct sales in the month of August, the firm noted.

Neal Black, president and CEO of the company stated, "While our total Sales declined in the second quarter of fiscal 2013, we achieved stability in our gross profit margin rate. Specifically, our gross profit margin rate increased in both the fiscal months of June and July and the overall rate for the second quarter increased approximately 40 basis points from last year."

In the second quarter, the company's net income fell to $14.25 million or $0.51 per share from $23.16 million or $0.83 per share in the previous year.

On average, three analysts polled by Thomson Reuters expected the company to earn $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

The company's earlier forecast was for earnings in the range of $0.49 to $0.53 per share. The recent second quarter ended on August 3, while the second quarter of fiscal year 2012 ended on July 28.

The Hampstead, Maryland-based firm is a designer, manufacturer and retailer of men's tailored and casual clothing, sportswear, footwear and accessories. The company sells its full product line through 617 stores in 44 states and the District of Columbia.

Net sales for the quarter fell 10.7 percent to $232.53 million from $260.34 million in the same quarter last year. Analysts expected revenues of $232.25 million for the quarter. Comparable store sales decreased 15.9 percent from last year.

Direct Marketing sales were down 1.9 percent, and combined comparable store and Internet sales dropped 15.5 percent from the preceding year.

In mid-August, JoS. A. Bank Clothiers forecast a weak earnings outlook for the second quarter, compared to last year's earnings of $0.83 per share.

JOSB closed Wednesday's regular trading at $40.02 on the Nasdaq.