Jos. A. Bank Slips To Loss Amid 11% Sales Growth - Update

(RTTNews) - Jos. A. Bank Clothiers Inc (JOSB) Friday reported a slip to loss in the first quarter, hurt by strategic activity costs, including those for its merger with bigger rival Men's Wearhouse. Sales climbed about eleven percent, with adjusted earnings improving compared with a year ago.

CEO Neal Black said comparable brand sales climbed by double digits in the first two months of the quarter but then slowed after Easter resulting in a 8.4 percent growth for the period.

Hampstead, Maryland-based Jos. A. Bank posted quarterly net loss of $37 million or $1.33 per share, compared with earnings of $8 million or $0.29 per share last year.

Results for the recent quarter included one-time strategic activity costs of about $75.4 million.

Excluding items, adjusted earnings for the recent quarter were $9 million or $0.32 per share.

Jos A. Bank, which operates 639 stores, posted quarterly sales of $217.4 million, up from $196 million a year ago.

Detailing its performance in the current quarter, Jos. A. Bank said it posted a 7.7 percent increase in sales in May, but gross margin shrank as it aggressively sold clearance goods and also incurred higher marketing expenses. Jos. A. Bank, as a result, is cautious as it approaches the Father's Day selling period.

In March, Jos. A. Bank agreed to be acquired by Houston, Texas-based Men's Wearhouse Inc (MW) for $1.8 billion, ending a prolonged takeover tussle.

Upon closure of the deal, the combined company will have more than 1,700 stores in the U.S., with around 23,000 employees and adjusted sales of $3.5 billion.

On Thursday, Men's Wearhouse reported a decline in first-quarter profit, hurt mostly by expenses that offset a marginal increase in sales. However, the results topped Wall Street estimates.

Jos. A. Bank stock closed Friday at $64.97, up $0.04 or 0.06%, on a volume of 359k shares on the Nasdaq. In after hours, the stock dropped $0.04 or 0.06%.