JoS. A. Bank rides online sales, tops expectations
HAMPSTEAD, Md. (AP) — JoS. A. Bank posted a 13 percent jump in revenue during the second quarter and blew away profit expectations on Wall Street, sending shares up more than 17 percent in midday trading.
Direct marketing sales —which include catalog and online sales — surged 39.3 percent and the retailer boosted its outlook for total U.S. store growth.
The company earned $23.2 million, or 83 cents per share, compared with $20.6 million, or 74 cents per share, in the prior-year period.
Analysts expected earnings of 73 cents per share.
Revenue for the three months ended July 28 rose 13 percent to $260.3 million from $230.7 million. That also breezed past Wall Street's forecast for $250.2 million in revenue.
Revenue at stores open at least a year, a key measure of a retailer's health, gained 6.1 percent. This figure excludes results from stores recently opened or closed.
Shares climbed $7.23 to $48.87 in premarket trading. The stock has traded between $39.54 and $56.43 over the past year. For the year to date, the shares are off 17 percent.
The Hampstead, Md. company said that the solid operating results of its new factory and full-line stores, its strong balance sheet and other factors lead it to believe that it can grow the chain to about 800 U.S. stores. It previously predicted between 650 and 675 total U.S. stores. JoS. A. Bank anticipates opening about 45 to 50 stores in both fiscal 2012 and fiscal 2013.
"This increase further solidifies the strength of our brand which continues to gain prominence in the U.S. market through our existing store presence, our advertising and marketing campaigns and our e-commerce platforms, among other factors," said CEO R. Neal Black.
JoS. A. Bank Clothiers Inc. has 572 stores in 44 states and the District of Columbia.