Retailer JoS. A. Bank Clothiers Inc. (NASDAQ: JOSB) today reported better-than-expected second-quarter earnings, driven by soaring direct marketing plans. JOSB also announced plans to open new stores, sending the company’s shares sharply higher in trading today.
For the second quarter, JOSB reported earnings of $23.2 million, or $0.83 per share, compared to $20.6 million, or $0.74 per share reported for the same period in the previous year. Analysts were expecting the retailer to report second-quarter earnings of $0.73 per share.
Sales for the second quarter rose 12.9% to $260.3 million, beating Street estimates of $251.1 million. Same-store sales for the quarter jumped 6.1%. The company benefited from a 39.3% increase in direct marketing sales in the second quarter.
R. Neal Black, President and CEO of JoS. A. Bank Clothiers, said that he is pleased with JOSB’s financial performance for the second quarter of fiscal 2012. Black said that sales increased by 12.9%, led by growth in the Direct Marketing segment sales and comparable store sales and net income increased 12.7%. Black added that JOSB’s net income margin in the second quarter was consistent with the strong performance in the same period last year.
JOSB, which operates 556 retail stores in the U.S., expects to grow to 800 total stores. In order to achieve its goal, JOSB plans to open about 45 to 50 stores in each of fiscal years 2012 and 2013.
Black said that JOSB is very excited to announce the increase in its store growth potential and the continuance of this very important part of the company’s overall growth program. Black said that increase solidifies the strength of JOSB brand which continues to gain prominence in the U.S. market through the company’s existing store presence, advertising and marketing campaigns and e-commerce platforms.
JOSB shares surged following the release of strong second-quarter results. The stock rose to an intra-day high of $49.48 in trading today before finishing the day 13.96% higher at $47.44 on above average volume of 4.16 million.
Year-to-date, JOSB shares are down 2.71%, underperforming the S&P 500.