Apparel stores operator JoS. A. Bank Clothiers, Inc. (JOSB) Wednesday reported a decline in profit for fiscal 2012, reflecting mainly higher marketing expenses. Net sales grew about 7 percent with a marginal decline in comparable store sales. Earnings per share beat analysts' expectations, while revenues missed view.
Looking ahead, the firm said it remains cautious about the first quarter of fiscal 2013.
Neal Black, president and CEO of the company said, "Total company sales for the year were up 7.1 percent but not enough to offset higher marketing expenses and lower gross margin. We are disappointed that we were not able to drive the sales gains we expected in our comparable stores..."
The company noted that its fourth-quarter sales started out slowly in November, partly due to Hurricane Sandy and the distractions of the national election.
For the fiscal year ended February 2, the company posted net income of $79.7 million or $2.84 per share, lower than $97.49 million or $3.49 per share in the previous year.
On average, four analysts polled by Thomson Reuters estimated earnings per share of $2.81 for the year. Analysts estimates typically exclude one-time items.
Net sales grew 7.1 percent to $1.05 billion, while analysts expected $1.06 billion.
Comparable store sales decreased 0.5 percent, while Direct Marketing sales climbed 22.7 percent from last year. Combined comparable store and internet sales in the year improved 2 percent compared to the prior fiscal.
Total operating expenses advanced to $483.32 million from $448.87 million a year earlier.
The company said it opened a total of 46 new stores in the fiscal year, including its 600th store.
JOSB closed Tuesday's regular trading at $39.18 on the Nasdaq.
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