JoS. A. Bank Clothiers Reports 25% Increase In Profits For Second Quarter Of Fiscal Year 2011

JoS. A. Bank Clothiers, Inc. (NASDAQ Global Select Market: JOSB) announces that net income for the second quarter of fiscal year 2011 increased 24.7% to $20.6 million as compared with net income of $16.5 million for the second quarter of fiscal year 2010. Earnings per share for the second quarter of fiscal year 2011 increased 25.4% to $0.74 per share as compared with earnings per share of $0.59 for the second quarter of fiscal year 2010. The second quarter of fiscal year 2011 ended July 30, 2011; the second quarter of fiscal year 2010 ended July 31, 2010.

Total sales for the second quarter of fiscal year 2011 increased 22.4% to $230.7 million from $188.4 million in the second quarter of fiscal year 2010, while comparable store sales increased 14.7% and Direct Marketing sales increased 27.8%.

Comparing the first six months of fiscal year 2011 with the first six months of fiscal year 2010, net income increased 18.8% to $38.4 million as compared to $32.3 million and earnings per share increased 18.1% to $1.37 per share as compared to $1.16 per share. Total sales for the first six months of fiscal year 2011 increased 15.7% to $423.9 million from $366.5 million for the first six months of fiscal year 2010, while comparable store sales increased 7.6% and Direct Marketing sales increased 25.0%.

“We are pleased with our sales and earnings performance for the second quarter of fiscal year 2011. While the components of our income statement may fluctuate somewhat from quarter to quarter, our business model, which features an aggressively sourced, high-quality, well-balanced, fully-stocked assortment that is promoted with timely marketing and sold by knowledgeable professionals in convenient locations, continues to deliver strong earnings growth over time. With this quarter’s results, we have achieved earnings growth in 39 of the past 40 quarters when compared to the respective prior year periods, including 21 quarters in a row,” stated R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “While sales are just one component of overall profit and August is a relatively small sales month, our comparable store sales in August are up slightly compared to the same period last year, despite the impact of the recent hurricane,” continued Mr. Black.

A conference call to discuss the second quarter of fiscal year 2011 earnings will be held Thursday, September 1, 2011 at 11:00 a.m. Eastern Time (ET). To join in the call please dial (USA) 800-230-1092 or (International) 612-234-9960 at least five minutes before 11:00 a.m. ET. A replay of the conference call will be available after 1:00 p.m. ET on September 1, 2011 until September 8, 2011 at 11:59 p.m. ET by dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for the replay will be 214845. In addition, a webcast replay of the conference call will be posted on the investor relations section of our website: www.josbank.com (select “Company Information” and “Investor Relations”).

All earnings per share amounts in this news release represent diluted earnings per share adjusted for the 50% stock dividend that the Company announced on June 17, 2010, under which stockholders of record as of July 30, 2010 received one additional share of common stock for each two shares then owned. The stock dividend was distributed on August 18, 2010.

JoS. A. Bank Clothiers, Inc., established in 1905, is one of the nation’s leading designers, manufacturers and retailers of men’s classically-styled tailored and casual clothing, sportswear, footwear and accessories. The Company sells its full product line through 529 stores in 42 states and the District of Columbia, a nationwide catalog and an e-commerce website that can be accessed at www.josbank.com. The Company is headquartered in Hampstead, Md., and its common stock is listed on the Nasdaq Global Select Market under the symbol “JOSB.”

Our statements concerning future operations contained herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forecasted due to a variety of factors outside of our control that can affect our operating results, liquidity and financial condition. Such factors include risks associated with economic, weather, public health and other factors affecting consumer spending, including negative changes to consumer confidence and other recessionary pressures, higher energy and security costs, the successful implementation of our growth strategy, including our ability to finance our expansion plans, the mix and pricing of goods sold, the effectiveness and profitability of new concepts, the market price of key raw materials such as wool and cotton, seasonality, merchandise trends and changing consumer preferences, the effectiveness of our marketing programs, the availability of suitable lease sites for new stores, doing business on an international basis, the ability to source product from our global supplier base, legal matters and other competitive factors. The identified risk factors and other factors and risks that may affect our business or future financial results are detailed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended January 29, 2011 and our subsequent Quarterly Reports on Form 10-Q filed through the date hereof. These cautionary statements qualify all of the forward-looking statements we make herein. We cannot assure you that the results or developments anticipated by us will be realized or, even if substantially realized, that those results or developments will result in the expected consequences for us or affect us, our business or our operations in the way we expect. We caution you not to place undue reliance on these forward-looking statements, which speak only as of their respective dates. We do not undertake an obligation to update or revise any forward-looking statements to reflect actual results or changes in our assumptions, estimates or projections. These risks should be carefully reviewed before making any investment decision.
     
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
 
 
Three Months Ended Six Months Ended
July 31, 2010 July 30, 2011 July 31, 2010 July 30, 2011
(In thousands, except per share information)
 
Net sales $188,412 $230,662 $366,537 $423,932
 
Cost of goods sold 70,082   86,755   134,891   154,712  
 
Gross profit 118,330   143,907   231,646   269,220  
 
Operating expenses:
Sales and marketing, including occupancy costs 73,748 88,120 144,267 166,972
General and administrative 17,175   21,189   33,911   38,613  
Total operating expenses 90,923   109,309   178,178   205,585  
 
Operating income 27,407 34,598 53,468 63,635
 
Other income (expense):
Interest income 159 83 274 215
Interest expense (5 ) (18 ) (95 ) (21 )
Total other income (expense) 154   65   179   194  
 
Income before provision for income taxes 27,561 34,663 53,647 63,829
Provision for income taxes 11,082   14,109   21,360   25,465  
 
Net income $ 16,479   $ 20,554   $ 32,287   $ 38,364  
 
Per share information:
Earnings per share:
Basic $0.60 $0.74 $1.17 $1.39
Diluted $0.59 $0.74 $1.16 $1.37
Weighted average shares outstanding:
Basic 27,527 27,749 27,527 27,686
Diluted 27,827 27,958 27,823 27,944
 

Note: The foregoing unaudited Consolidated Statements of Income are excerpts from our unaudited Consolidated Financial Statements for the three and six months ended July 31, 2010 and July 30, 2011 and do not include the Notes, which are considered an integral part thereof. The foregoing unaudited financial information should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2011 which was filed with the Securities and Exchange Commission on August 31, 2011.
 
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
   
January 29, 2011 July 30, 2011
(In Thousands)
(Audited) (Unaudited)
 
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 80,979 $ 92,691
Short-term investments 189,789 176,975
Accounts receivable, net 9,525 13,453
Inventories:
Finished goods 222,251 256,570
Raw materials   11,059   15,837
Total inventories 233,310 272,407
Prepaid expenses and other current assets   19,494   22,843
 
Total current assets 533,097 578,369
 
NONCURRENT ASSETS:
Property, plant and equipment, net 128,603 133,223
Other noncurrent assets   337   310
Total assets $ 662,037 $ 711,902
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 31,505 $ 45,862
Accrued expenses 88,165 80,255
Deferred tax liability – current   5,276   5,303
Total current liabilities 124,946 131,420
 
NONCURRENT LIABILITIES:
Deferred rent 49,279 48,895
Deferred tax liability – noncurrent 4,147 5,271
Other noncurrent liabilities   989   1,478
Total liabilities   179,361   187,064
 
COMMITMENTS AND CONTINGENCIES
 
STOCKHOLDERS’ EQUITY:
Common stock 275 277
Additional paid-in capital 86,792 90,588
Retained earnings 395,531 433,895
Accumulated other comprehensive income   78   78
Total stockholders’ equity   482,676   524,838
Total liabilities and stockholders’ equity $ 662,037 $ 711,902
 

Note: The foregoing audited and unaudited Consolidated Balance Sheets are excerpts from our Consolidated Financial Statements (as of January 29, 2011 and as of July 30, 2011) and do not include the Notes, which are an integral part thereof. The foregoing financial information should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2011 and the Annual Report on Form 10-K for the fiscal year ended January 29, 2011, which were filed with the Securities and Exchange Commission on August 31, 2011 and March 30, 2011, respectively.
 
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
   
 
Six Months Ended
July 31, 2010 July 30, 2011
(In Thousands)
 
Cash flows from operating activities:
Net income $ 32,287 $ 38,364
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization 11,802 12,595
Loss on disposals of property, plant and equipment 91 122
Non-cash equity compensation 234 1,369
Increase (decrease) in deferred taxes (1,358 ) 1,151
Net (increase) in operating working capital and other components   (17,988 )   (43,093 )
 
Net cash provided by (used in) operating activities   25,068     10,508  
 
Cash flows from investing activities:
Capital expenditures (12,471 ) (14,039 )

Proceeds from maturities of short-term investments
99,895 189,789
Payments to acquire short-term investments   (44,850 )   (176,975 )
 
Net cash provided by (used in) investing activities   42,574     (1,225 )
 
Cash flows from financing activities:
Income tax benefit from exercise of stock options - 1,883
Net proceeds from exercise of stock options   -     546  
 
Net cash provided by financing activities   -     2,429  
 
Net increase in cash and cash equivalents   67,642     11,712  
 
Cash and cash equivalents – beginning of period   21,853     80,979  
 
Cash and cash equivalents – end of period $ 89,495   $ 92,691  
 

Note: The foregoing unaudited Consolidated Statements of Cash Flows are excerpts from our unaudited Consolidated Financial Statements for the six months ended July 31, 2010 and July 30, 2011 and do not include the Notes, which are considered an integral part thereof. The foregoing unaudited financial information should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2011, which was filed with the Securities and Exchange Commission on August 31, 2011.

Copyright Business Wire 2010

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