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Jos. A. Bank Clothiers Inc.'s stock surged Wednesday after the retailer announced a nearly 13 percent increase in second-quarter profit and plans to expand the chain to 800 locations.
Shares in the Hampstead-based men's apparel chain ended the day up $5.81, at $47.44, in Nasdaq trading.
Jos. A. Bank expects to grow to 700 full-line stores and about 100 factory stores in the United States, the company said. The chain, which now runs 572 stores, had previously announced plans to grow to 675 stores.
"This increase further solidifies the strength of our brand, which continues to gain prominence in the U.S. market through our existing store presence, our advertising and marketing campaigns and our e-commerce platforms, among other factors," CEO R. Neal Black said in a statement.
Jos. A. Bank reported a profit of $23.2 million, or 83 cents a share, for the three months that ended July 28, compared with income of $20.6 million, or 74 cents a share, during the same period a year earlier.
Sales at stores open at least a year grew 6.1 percent. Total sales were $260.3 million, up 12.9 percent from $230.7 million, led by growth in the direct-marketing segment and increases at stores open at least a year, the company said.
"We are pleased with our financial performance for the second quarter," Black said in the statement. "We are … pleased to announce that the third quarter has started out positively," with comparable-store sales and direct-marketing sales up in August.
The company said it expected to open 45 to 50 stores per year in fiscal 2012 and 2013, including about 10 factory stores each year.
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