Driven by top-line growth and improved gross margin,
Jos. A Bank Clothiers Inc.
) adjusted earnings for the third quarter of fiscal 2013 rose
8.5% year over year to 51 cents per share, and came a penny ahead
of the Zacks Consensus Estimate.
On a reported basis, earnings came in at 49 cents per share
versus 47 cents in the comparable year-ago quarter.
Net sales in the quarter grew 6.3% year over year to $247.5
million primarily driven by improved Direct Marketing sales and
an enhanced omni-channel business model. Moreover, the company's
top line handily surpassed the Zacks Consensus Estimate of $232.0
Comparable-store sales (comps) dropped 0.1% in the quarter
while Direct Marketing sales rose 23.5% year over year.
Comps, including Internet sales, improved 2.4% in the
Gross profit for the quarter came in at $142.1 million, up
7.1% from the comparable prior-year period figure of $132.6
million. Further, as a percentage of sales it improved 40 basis
points (bps) to 57.4% primarily benefiting from lower sourcing
costs and higher average selling retail.
During the quarter, operating income on a reported basis rose
1.8% year over year to $21.6 million. However, operating margin
contracted 40 bps to 8.7% as the benefit of higher gross margin
was more than offset by increased operating expenses as a
percentage of sales.
As of Nov 2, 2013, cash and short-term investments were $339.9
million and there was no long-term debt. During the first three
quarters of fiscal 2013, Jos. A. Bank deployed $22.1 million
toward opening stores as well as relocating and remodeling of
Overall, Jos. A Bank attributes the impressive third-quarter
performance to the implementation of new promotional strategies
over the past few quarters. These measures helped the company to
achieve marketing efficiency and thereby boost results.
Additionally, the company continues to benefit from robust
performances in its non-promotional segments, which have recorded
consistent sales growth. Going forward, Jos. A Bank expects to
sustain the upward trend in sales due to the planned strategies
for its brands.
Other Stocks Worth Considering
Jos. A Bank currently carries a Zacks Rank #3 (Hold). Some
better-ranked apparel/shoe retail stocks include
Finish Line Inc.
Fossil Group, Inc.
Five Below, Inc.
). All these have a Zacks Rank #2 (Buy).
FINISH LINE-CLA (FINL): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
FOSSIL GRP INC (FOSL): Free Stock Analysis
JOS A BANK CLTH (JOSB): Free Stock Analysis
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