Jos. A. Bank Clothiers Inc.'s (JOSB) fiscal third-quarter profit
grew 2.3% as the men's clothing retailer posted stronger direct
marketing sales, though same-store sales were down slightly.
For the start of the fourth quarter, Chief Executive R. Neal
Black said total sales, same-store sales and direct sales all
increased during November, leading into the critical December sales
time.
The company has been locked in a merger squabble with rival
Men's Wearhouse Inc. (MW), which last week unveiled a surprise
offer to buy Jos. A. Bank for about $1.5 billion, turning the
tables on its previous suitor. Jos. A. Bank initiated the merger
efforts with an October bid of $2.3 billion for its larger
competitor, but Men's Wearhouse rebuffed the offer as too low.
Jos. A. Bank has appeared eager for a deal, as have investors of
both companies, which have bid up the firms' shares. Jos. A. Bank
Chairman Robert Wildrick said in an interview when its bid for
Men's Wearhouse became public that his company would itself be
receptive to a bid, and when the Jos. A. Bank dropped its offer
last month it said it may consider another proposal for Men's
Wearhouse in the future.
For the quarter ended Nov. 2, Jos. A. Bank reported a profit of
$13.6 million, or 49 cents a share, versus $13.3 million, or 47
cents a share, in the prior-year period. Excluding legal and
professional costs stemming from the company's acquisition
proposal, earnings were 51 cents in the latest period. The retailer
last month said it expected adjusted earnings of 49 cents to 51
cents a share.
Sales rose 6.3% to $247.5 million, compared with the company's
estimate of mid-single-digit growth. Analysts polled by Thomson
Reuters were expecting $245 million.
Same-store sales edged down 0.1%, while the company had
predicted roughly flat growth. Direct marketing sales jumped 24%
and combined same-store and Internet sales for the period rose
2.4%.
Shares closed Wednesday at $56.89 and were inactive premarket.
The stock is up 34% so far this year, surging since it first
offered to buy Men's Wearhouse.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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