Jos A. Bank Misses Earnings; Merger With Men’s Wearhouse Still Planned

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Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB) is a designer, manufacturer, retailer, and direct marketer of men’s tailored and casual clothing, as well as accessories in the United States. Its product offerings include suits, tuxedos, dress shirts, sportcoats, dress pants, overcoats, vests, ties, sportswear, sweaters, belts, socks, underwear, and other products for formal, business, business casual, sportswear, and golf needs.

The company sells its products primarily under the Jos. A. Bank label through its own and franchised stores, catalog, call center, and on the internet at josbank.com. It also sells branded shoes from various vendors and operates as a retailer of tuxedo rental products. The company operated 633 stores in 44 states and the District of Columbia and will soon be undergoing a merger with competitor Men’s Wearhouse (NYSE:MW). But is Jos. A. Bank worth the acquisition costs for Men’s Wearhouse?

Men’s Wearhouse is merging with Jos A. Bank to reach more customers and grow its business. However, Jos. A. Bank recently missed its earnings estimates by 8 cents per share. The company’s adjusted earnings per diluted share were 32 cents for the first quarter of fiscal 2014, representing a 10.3 percent increase compared to adjusted earnings per diluted share of 29 cents in the first quarter of fiscal 2013.

Adjusted net income was $9 million for the first quarter of fiscal 2014 compared to $8.1 million in the same period in fiscal-year 2013.The adjusted earnings per diluted share and adjusted net income for the first quarter of fiscal year 2014 exclude expenses of approximately $75.4 million, or $1.65 per diluted share, of so-called “strategic activity costs,” which were fees and expenses related to the company’s planning activities.