Jos. A. Bank posts small loss on expansion costs

August 30, 1994|By Jay Hancock | Jay Hancock,Sun Staff Writer

Store start-up expenses caused Jos. A. Bank Clothiers Inc. to lose $345,000 on $35.2 million in revenue for its first quarter as a public company, a result that was expected by Wall Street analysts.

Without the costs to open stores in Milwaukee, Greenville, S.C., Wichita, Kan., and several other cities, the Hampstead-based apparel seller would have made a "minimal" profit, said Chairman Timothy F.Finley.

The loss, which amounted to 5 cents a share, came for the three months that ended July 30, normally a less-important selling period for Bank. Sales in stores open for at least a year fell by 1.6 percent for the quarter. Mr. Finley attributed the decrease in part to the fact that Bank cut promotions during the period.

"We're really doing better in comp-store sales than they [analysts] expected, which is amazing since we didn't have any advertising in June," Mr. Finley said.

For the first six months of its fiscal year, Bank's same-store sales increased by 4 percent. And its catalog sales, which make up 19 percent of overall revenue, jumped by 22 percent for the six months.

Bank's results "are reasonable right now," said Charles Ronson, who publishes the IPO Value Monitor, an analytical report for institutional investors. "They're in line with what they've been doing and what they've said they're going to do."

Like other apparel sellers, Bank is entering the crucial fall and holiday seasons. Analysts expect the company to turn a profit for the year, but estimates range from a low of 20 cents a share to a high of 70 cents, according to Institutional Brokers Estimate System in New York.

Bank sells mainly men's suits,sport coats, shirts and accessories. Its growth strategy is to add stores. The company operates 70 stores, expects to have 80 by the end of the year and will open its first outlet in New York -- at Madison Avenue and 46th Street -- on Thursday.

Jos. A. Bank Clothiers Inc.

'Jos. A. Bank. Clothiers Inc.

Hampstead

Ticker .. .. .. .. .. Yesterday's

Symbol .. .. .. .. .. Cls. .. .. .. Chg.

JOSB .. .. .. .. .. ....7 1/2 .. .. .. ..- 1/4

Period ended

7/30 .. .. .. .. .. .. .. .. 2nd qtr. .. .. .. .. Year ago .. .. Chg.

Revenue .. .. .. .. .. .. .. $35,200 .. .. .. .. ..$30,600 .. ..+15.0%

Net Income .. .. .. .. .. .. ..($345) .. .. .. .. .. ($313) .. .. --

Primary EPS .. .. .. .. .. .. ..($0.5) .. .. .. .. ..($0.5) .. .. --

.. .. .. .. .. .. .. .. .. .. 6 mos. .. .. .. .. .. Year ago .. ..Chg.

GRevenue .. .. .. .. .. .. .. $78,900 .. .. .. .. .. $67,000.. ..+17.8%

Net Income .. .. .. .. .. .. .. $636 .. .. .. .. .. .. $609 .. ..+4.4%

Primary EPS .. .. .. .. .. .. ..$0.11 .. .. .. .. .. $0.10 .. ..+10.0%

Figures in thousands (except per share data.)

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