Apparel stores operator JoS. A. Bank Clothiers, Inc. (JOSB), Monday expects earnings for the first quarter to be in a range of $0.27 to $0.30 per share, sharply down from $0.53 per share recorded last year. The company attributed higher inventory sourcing costs and lower average selling prices for the expected decline in first quarter profit.
On average, three analysts polled by Thomson Reuters expect the firm to report earnings per share of $0.46 for the first quarter. Analysts' estimates typically exclude one-time items.
For the three-month period, the firm stated sales decline of 3 percent mainly in April, due to weather conditions. Gross margin was down due to higher inventory sourcing costs, lower average selling prices and increased percentage of sales of winter clearance products. The sales were also had an impact from unseasonably cool weather.
Commenting on the earnings update, Neal Black, President and CEO said, "For the remainder of 2013, we will continue to focus on our goal of returning to previous levels of gross margin rates and advertising productivity ...starting this spring, we have introduced new and more focused casual assortments and additional slim-fit suit inventories responding to customer demand."
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