Sales Down but Gross Margin Rate Up; Looking Forward to Better Results
Q2 EPS Within Range Previously Announced by Company
August Sales Have IncreasedHAMPSTEAD, Md., Sept. 5, 2013 (GLOBE NEWSWIRE) -- JoS. A. Bank Clothiers, Inc.(Nasdaq:JOSB) announces that net income for the second quarter of fiscal year 2013 was $14.2 million as compared with net income of $23.2 million for the second quarter of fiscal year 2012. Diluted earnings for the second quarter of fiscal year 2013 were $0.51 per share as compared with diluted earnings of $0.83 per share for the second quarter of fiscal year 2012, which is within the expected EPS range of $0.49 to $0.53 per diluted share previously announced by the Company. Commenting on the earnings for the second quarter, R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. stated: "While our total Sales declined in the second quarter of fiscal 2013, we achieved stability in our gross profit margin rate. Specifically, our gross profit margin rate increased in both the fiscal months of June and July and the overall rate for the second quarter increased approximately 40 basis points from last year. Customers did not respond as well to some of our highly promotional marketing campaigns as they did in the prior year, causing the disappointing sales decline in the quarter. At the same time, day to day sales on the non-promotional portion of our business in stores increased during the quarter and have the potential to represent a larger portion of our business going forward. As we implemented new marketing strategies, we were conservative with our marketing expenditures which enabled us to continue to improve our marketing efficiency during the quarter." "For the start of the third quarter, our total sales, comparable store sales and Direct sales have all increased during the fiscal month of August 2013 as compared to the same period of 2012, so the third quarter is off to a good start, but it is still early in the quarter. The August 2013 sales increase comes on top of a double-digit sales increase in August 2012. With the gross margin trend turning up in the second quarter and the sales trend turning up in August, our declines may have bottomed out. We are highly focused on improving our sales trend, and further improving both our gross profit margin rate and our marketing efficiency over the remainder of fiscal year 2013, with the overall goal of returning to previous years' levels. We will continue to modify and implement new marketing events and the related media placement to maintain efficiency and to drive sales. We will begin to annualize our declining sales and gross margin trends during the third quarter and for all of the fourth quarter, which means our opportunity for improvement is significant during those periods," continued Mr. Black.