US: Jos A Bank Q3 profit falls 11.2%
- Q3 profit down 11.2% to $13.3m
- Sales rose 11.1% to $232.9m
- Sales hurt by Hurricane Sandy and election
Men's wear retailer Jos A Bank Clothiers has today (28 November) reported an 11.2% fall in third-quarter net profit after Hurricane Sandy and the presidential election kept shoppers away from its stores.
Net income slipped to US$13.3m for the quarter to 27 October, compared to $15m last year. The company said it had resorted to markdowns and promotional activity to help drive sales.
The Hampstead, Maryland-based retailer saw sales rise 11.1% to $232.9m, compared to $209.6m the same period last year, while comparable store sales were up 4.8%.
"We are pleased that we were able to deliver comparable store sales growth and direct marketing segment sales growth during the third quarter of fiscal year 2012," CEO and president R Neal Black said. "However, we are disappointed that our net income declined versus the same period a year ago."
"Also, Hurricane Sandy, which hit along the East Coast where the majority of our largest volume regions are located, negatively impacted third quarter sales, particularly when we ran a big promotion right at the end of the quarter.
"The hurricane, along with the distractions of the national election, continued to have a negative impact in the first weeks of November. In November, for the start of the fourth quarter, comparable store sales were down," Black added.
"With the critical month of December still ahead of us, and continued pressure on margins, we remain cautious for the outcome of the fourth quarter."
Men's wear retailer Jos A Bank Clothiers has warned that first-quarter earnings will be lower than last year, after margins were hit by higher sourcing costs and lower average selling prices as it cle...
US men's clothing retailer Jos A Bank Clothiers saw full year net income fall as higher marketing expenses and lower gross margin offset an increase in sales. ...
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