Jos. A. Bank Earnings Cheat Sheet: Margins Keep Growing, Net Income Climbs

Jos. A. Bank Clothiers, Inc. (NASDAQ:JOSB) reported its results for the first quarter. Jos. A. Bank Clothiers, Inc. 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 First Quarter

Results: Net income for Jos. A. Bank Clothiers, Inc. rose to $17.8 million (64 cents/share) vs. $15.8 million (56 cents/share) in the same quarter a year earlier. A rise of 12.7% from the year earlier quarter.

Revenue: Rose 8.5% to $193.3 million YoY.

Actual vs. Wall St. Expectations: JOSB fell short of the mean analyst estimate of 65 cents/share. Estimates ranged from 62 cents per share to 68 cents per share.

Quoting Management: “We are pleased with our first quarter of 2011, particularly the gross profit margin, which grew by 120 basis points and resulted in a gross profit dollar increase of 10.6%. We faced very strong results from the first quarter of 2010 and had good sales gains in the first quarter of fiscal year 2011 in the suits and dress shirts categories, while our sales declined in certain seasonal products such as sportswear,” stated R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “With this quarter’s results, we have achieved earnings growth in 38 of the past 39 quarters when compared to the respective prior year periods, including 20 quarters in a row. While sales are just one component of the overall profit, we are also pleased that so far for the second quarter our comparable store sales are up compared to the same period last year, which is a good improvement in the most recent comparable store sales trend. Our Internet business remains very strong,” continued Mr. Black.

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.2 percentage points to 64.8% from the year earlier quarter. Over that span, margins have grown on average 1.5 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 15.5% and in the third quarter of the last fiscal year, the figure rose 7.1%.

Revenue has risen the past four quarters. Revenue increased 14% to $318.3 million in fourth quarter of the last fiscal year. The figure rose 7.4% in third quarter of the last fiscal year from the year earlier and climbed 12.3% in second quarter of the last fiscal year from the year-ago quarter.

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).

Stock Performance: Shares of JOSB are down over 12% today.

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(Sources: YahooFinance, Xignite Financials)

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