Jos. A. Bank Clothiers Earnings: Margins Shrink as Net Income Drops
Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB) reported its results for the first quarter. Jos. A. Bank Clothiers is a designer, retailer and direct marketer of men’s tailored and casual clothing and accessories.
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Jos. A. Bank Clothiers Inc. Earnings Cheat Sheet
Results: Net income for Jos. A. Bank Clothiers Inc. fell to $14.8 million (53 cents per share) vs. $17.8 million (64 cents per share) a year earlier. This is a decline of 16.7% from the year-earlier quarter.
Revenue: Rose 4.2% to $201.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Jos. A. Bank Clothiers Inc. fell short of the mean analyst estimate of 62 cents per share. It fell short of the average revenue estimate of $208.9 million.
Quoting Management: “Net income in the first quarter of fiscal year 2012 was 7.4% of sales as compared with 9.2% of sales in the first quarter of fiscal year 2011. Sales started more slowly than we had planned for the first eight weeks of the quarter. After making marketing changes beginning in week nine, sales improved substantially,” stated R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “So far the second quarter has started out much better than the first quarter. For May, both our comparable store sales and Direct Marketing sales are up compared to the same period last year, continuing the positive trend established in the last five weeks of the first quarter. However, Father’s Day, the most important selling period of the quarter, is still ahead of us,” continued Mr. Black.
Last quarter’s profit decrease ends a four-quarter streak of profit increases. In the fourth quarter of the last fiscal year, net income rose 7.8% from the year earlier, while the figure increased 19.3% in the third quarter of the last fiscal year, 24.7% in the second quarter of the last fiscal year and 12.7% in the first quarter of the last fiscal year.
Revenue has risen for the last four quarters. Revenue increased 8.8% to $346.3 million in the fourth quarter of the last fiscal year. The figure rose 21% in the third quarter of the last fiscal year from the year earlier and climbed 22.4% in the second quarter of the last fiscal year from the year-ago quarter.
The company has fallen short of estimates for two consecutive quarters. In the fourth quarter of the last fiscal year, it missed expectations by one cent with net income of $1.58 versus a mean estimate of net income of $1.59 per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 82 cents a share to 79 cents over the last ninety days. The average estimate for the fiscal year is $3.86 per share, down from $3.93 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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