JoS. A. Bank Sees Weak Q2 Profit; Shares Down

(RTTNews) - Men's retailer JoS. A. Bank Clothiers Inc. (JOSB), Wednesday forecast a weak earnings outlook for the second quarter, which is indicated to miss current Wall Street estimates. Following the news, shares of the company dropped over five percent in after-hours trade.

The Hampstead, Maryland-based retailer expects second-quarter earnings in the range of $0.49 to $0.53 per share. This compares to last year's earnings of $0.83 per share. Analysts polled by Thomson Reuters currently expect earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Commenting on the weak earnings outlook, Chief Executive Neal Black said promotional and marketing campaigns failed to attract customers like it did last year resulting in total sales decline of about 11 percent for the second quarter.

"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 is expected to increase slightly from last year," Black said.

Going forward, the company said it will be focused on improving sales trend, and further improving both its gross profit margin rate and marketing efficiency over the remainder of fiscal year 2013.

"We will continue to modify and implement new marketing events and the related media placement to maintain efficiency and to drive sales. We will begin to annualize our declining sales and gross margin trends during the third quarter and for all of the fourth quarter, which means our opportunity for improvement is significant during those periods," Black added.

JOSB closed Thursday's trading at $44.10, down $0.79 or 1.76%, on the Nasdaq. The stock, further dropped $2.29 or 5.19% in after hours trade.