Jos. A. Bank Clothiers Profit Declines, Says Sales Through Holidays Were Robust

(RTTNews) - Jos. A. Bank Clothiers, Inc. (JOSB), which has agreed to be bought by larger rival Men's Wearhouse Inc. (MW), Wednesday reported decline in profit for the fourth quarter and full year. The company said the transaction with Men's Wearhouse is expected to close by the third quarter of 2014.

Earnings for the quarter fell to $0.98 per share from $1.01 per share last year. However, adjusted earnings per share were $1.07, while it totaled $0.98 in the fourth quarter of fiscal 2012. Two analysts polled by Thomson Reuters expected earnings of $1.07 per share. Analysts estimates typically exclude special items.

The latest adjusted earnings exclude expenses of $0.07 per share for legal and other professional services related to the company's announced acquisition by Men's Wearhouse, Inc. and other strategic activity, and $0.02 per share for estimated non-cash asset impairment charges.

In 2012, adjusted earnings excluded $0.02 per share for non-cash asset impairment charges and $0.05 per share for the estimated positive impact of the 14th week in 2012.

The 13-week fourth quarter of fiscal year 2013 ended February 1, 2014 while the 14-week quarter of fiscal year 2012 ended February 2, 2013.

Total comparable brand sales for the 13-week fourth quarter of 2013 increased 1.8 percent when compared to the same comparable period of fiscal year 2012 and Direct sales jumped 10.6 percent. Total sales for the fourth quarter of fiscal year 2013 increased 4.7 percent during the same period.

Total sales for the 13 weeks of the 2013 fourth quarter reached $356 million, while it totaled $355 million in the 14 weeks of the 2012 fourth quarter.

Neal Black, president and CEO, said, "The initiatives we have undertaken to improve both our top and bottom line performance are delivering results. As we previously reported, our sales through the holidays were robust, with comparable brand sales up 9.1% between November 3rd and December 24th."

For the year, net income declined to $63.33 million from $79.7 million in 2012. Earnings per share fell to $2.26 from $2.84.

Net sales were $1.032 billion, compared to $1.049 billion last year. Fiscal year 2013 consisted of 52 weeks and fiscal year 2012 consisted of 53 weeks.

The company generated double-digit total sales gains in the first four weeks of fiscal March of 2014, reflecting positive consumer response to promotions as well as strength in the non-promotional portion.

As announced on March 11, Jos. A. Bank and Men's Wearhouse entered into a definitive agreement under which Men's Wearhouse would purchase all outstanding shares of Jos. A. Bank for $65 per share in cash. The transaction is expected to close by the third quarter of 2014.

JOSB closed at $64.36 on Tuesday.