Dec 5, 2013
Promotions revamp helps Jos. A. Bank boost November sales
Dec 5, 2013
Men's suit retailer Jos. A. Bank Clothiers Inc said comparable-store sales rose in November, suggesting its new strategy of offering more straight discounts rather than buy-one-get-more offers was paying off.
The company - the target of a takeover bid by Men's Wearhouse Inc - struggled earlier this year as customers did not respond to its aggressive marketing campaigns, which included a offers such as "buy one, get three free".
Comparable-store sales have fallen in every quarter this year, including the latest quarter when they fell 0.1 percent.
"... The customer is responding well to the changes we are making in the promotional side of our business," Chief Executive R. Neal Black said in a statement on Thursday.
Black said both total sales and comparable-store sales rose in November but did not provide details.
Total sales rose 6.3 percent to $247.5 million in the third quarter ended Nov. 2. Analysts on average were expecting revenue of $245 million, according to Thomson Reuters I/B/E/S.
Net income rose to $13.6 million, or 49 cents per share, from $13.3 million, or 47 cents per share, a year earlier.
Excluding items, the Hampstead, Maryland-based company earned 51 cents per share, beating the average analyst estimate of 49 cents.
Jos. A. Bank's gross margin rose by 40 basis points to 57.42 percent in the third quarter.
Jos. A. Bank offered to buy Men's Wearhouse in October for $2.3 billion, but was swiftly rebuffed. Jos. A. Bank then dropped its offer but did not rule out another bid in the future.
Men's Wearhouse struck back weeks later with a $1.5 billion offer for its former suitor.
Men's Wearhouse is scheduled to report results next week.
Jos. A. Bank shares were untraded before the bell. They have risen 33 percent this year to Wednesday's close of $56.89 on the Nasdaq.
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