Jos. A. Bank Clothiers Inc. Earnings Cheat Sheet: Full Steam Ahead

Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB) reported net income above Wall Street’s expectations for the third quarter. Jos. A. Bank Clothiers is a designer, retailer and direct marketer of men’s tailored and casual clothing and accessories.

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Jos. A. Bank Clothiers Earnings Cheat Sheet for the Third Quarter

Results: Net income for Jos. A. Bank Clothiers Inc. rose to $15 million (54 cents per share) vs. $12.6 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 19.3% from the year earlier quarter.

Revenue: Rose 21% to $209.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: JOSB beat the mean analyst estimate of 51 cents per share. It beat the average revenue estimate of $196 million.

Quoting Management: “We are pleased to report another solid sales and earnings performance for the third quarter of fiscal year 2011 with sales growth of 21.0% and earnings growth of 19.3%. With this quarter’s results, we have achieved earnings growth in 40 of the past 41 quarters when compared to the respective prior year periods, including 22 quarters in a row,” stated R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “The fourth quarter, compared to a very strong performance last year, has started out more slowly than we had planned. November comparable store sales declined, while our direct segment sales increased, compared to the same period last year. As a result, we have adjusted our December merchandising and marketing plans for stores. We believe our efforts will be effective and appealing to our customers. Therefore we remain cautiously optimistic for the outcome of this year’s fourth quarter,” continued Mr. Black.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 24.7% and in the first quarter, the figure rose 12.7%.

Gross margin shrank 1.4 percentage points to 62.6%. The contraction appeared to be driven by increased costs, which rose 25.6% from the year earlier quarter while revenue rose 21%.

Revenue has risen the past four quarters. Revenue increased 22.4% to $230.7 million in the second quarter. The figure rose 8.5% in the first quarter from the year earlier and climbed 14% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 74 cents versus a mean estimate of net income of 68 cents per share.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.62 per share from $1.60. For the fiscal year, the average estimate has moved up from $3.41 a share to $3.48 over the last ninety days.

Competitors to Watch: The Men’s Wearhouse, Inc. (NYSE:MW), Casual Male Retail Group, Inc. (NASDAQ:CMRG), Zumiez Inc. (NASDAQ:ZUMZ), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), Aeropostale, Inc. (NYSE:ARO), Nordstrom (NYSE:JWN), JC Penney (NYSE:JCP), The Gap Inc. (NYSE:GPS) and Express, Inc. (NYSE:EXPR).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)