U.S.-based high-end men's apparel and accessories retailer,
Jos. A. Bank Clothiers, Inc.
) is scheduled to report its financial results for the third
quarter of fiscal 2012 on Thursday, November 29. The current
Zacks Consensus Estimate for the quarter is 55 cents a share, a
penny higher than 54 cents delivered in the year-ago quarter.
Revenue, as per the Zacks Consensus Estimate, is pegged at $231.0
Jos has reported both positive and negative surprises in the
trailing four quarters that ranged from -13.1% to 15.3%. The
average positive surprise over the last four quarters was
therefore a mere 1.9%.
Driven by strong top-line performance along with leveraged
operating expenses, Jos' earnings of 83 cents per share for the
second quarter of fiscal 2012 surged over 12% from the comparable
quarter last year. Moreover, earnings were ahead of the Zacks
Consensus Estimate of 72 cents per share.
Net sales stood at $260.3 million, which was 12.9% higher than
the year-ago quarter's level, primarily due to a growth of 6.1%
in comparable-store sales, a 39.3% surge in online business and
the addition of new stores. The year-over-year increase in
comparable sales was the outcome of higher average dollars per
transaction and increased traffic while its online business
benefited from an increase in conversion rates.
Bolstered by better-than-expected quarterly results, the
company has decided to expand its store network to 800 stores in
the United States from 572 operated as of August 29, 2012. For
this, Jos intends to open nearly 45 and 50 stores in fiscal 2012
and 2013, respectively.
The analysts following the stock expect Jos to post earnings
of 83 cents a share in the third quarter of 2012, higher than 74
cents delivered in the third quarter of 2011. Currently, the
Zacks Consensus Estimate for the quarter ranges between a low of
52 cents and a high of 60 cents a share.
For fiscal 2012, the Zacks Consensus Estimate stands at $3.79
per share, which is higher than the earnings of $3.49 in 2011.
Currently, the Zacks Consensus Estimate ranges between a low of
$3.67 and a high of $3.96 a share.
Agreement & Magnitude of Earnings Estimate
We do not see any estimate revisions over the last 30 days,
either for the third quarter or for fiscal 2012. Therefore, the
magnitude of estimate revisions for the company depicts a neutral
outlook and remains unchanged for the third quarter as well as
At the end of the second quarter of 2012, Jos had cash and
short-term investments of $292.2 million and no long-term debt.
We believe that the company has ample liquidity to fund its
long-term growth plans of enhancing store count, which will
ultimately boost its top line.
Moreover, the company is continuously making investments
toward product expansions, new promotional activities,
international shipping and technological advancements. We expect
these strategies to drive Jos' store base as well as its online
However, we remain slightly cautious on the stock due to the
sluggish economic recovery and rising cotton and wool prices.
Therefore, we have maintained our long-term 'Neutral'
recommendation on the stock. Moreover, the company has a Zacks #3
Rank, implying a short-term Hold rating.
One of Jos' peers,
The Men's Wearhouse, Inc
) holds a Zacks #2 Rank and is scheduled to report its
third-quarter 2012 financial results on December 5, 2012. The
current Zacks Consensus Estimate stands at 97 cents per share,
23.2% higher than the year-ago quarter's earnings of 79
About The Company
Jos is a retailer and cataloger of Men's tailored and casual
clothing and accessories. The company's products are sold
exclusively under the Jos. A. Bank label through its
company-operated retail stores and franchise stores located
throughout the Northeast, Southeast, Midwest, South, and
Mid-Atlantic regions of the U.S., as well as through the
company's nationwide catalog operations and its e-commerce
internet sites. The company's products are targeted at the male
JOS A BANK CLTH (JOSB): Free Stock Analysis
MENS WEARHOUSE (MW): Free Stock Analysis
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