Tag - JOSB

Executives of men’s apparel retailer Jos. A. Bank Clothiers, Inc. (Nasdaq: JOSB) laid out the firm’s ambitions for future growth. CEO Bob Wildrick said the company aims to achieve an annual sales level of $1 billion and net income of at least $90 million by 2012.  These goals represent an 83% premium over sales of $546.4 million and a 108% increase over net income of $43.2 million during fiscal 2006, which ended February 3. Wildrick made the remarks during a midday conference call.

To achieve these goals, Wildrick said Jos. A Bank’s target number of stores is at least 600. The company opened 16 stores during the first half of fiscal 2007 ended July 29. The firm plans to open its 400th location in October.

“We feel comfortable with our ability to raise the number [of stores] after conducting a couple of internal and external studies,” the chief executive said during the call. “It’s important to note that these objectives can be achieved through organic growth and do not include any acquisitions or new businesses, which could also come into the forefront and accelerate this process and our goals.”

Jos. A Bank aims to open around 50 stores during the fiscal year, with between 20 and 25 new locations being opened in the third quarter ending in late October. Wildrick said the clothing retailer is concentrating on opening locations in California, Texas, Florida and Arizona.

Addressing the volatile economy, Wildrick recognized the “great deal of uncertainty with the consumer” but said the situation presents Jos. A Bank with several advantages.

“We have a high amount of basic merchandise so our markdown risk is way less than a pure fashion retailer,” he said. “We have the financial ability to stay the course and execute our plans.”

The weak real estate market may also provide the company with rent negotiation advantages, he said.
 
Before the opening bell, the Hampstead, Md.-based firm reported income of $8.2 million, or $0.44 a share, for the second quarter, above Wall Street estimates of $0.42 per share. During the equivalent period of 2006, Jos. A Bank recorded income of $7 million, or $0.38 per share.

Net sales for the three months ended August 4 were $134.3 million, below analyst projections of $135 million but about 13% above the $119 million a year earlier. The firm’s gross profit increased 12.7% to $83.7 million, from $74.3 million in the year-ago quarter. The clothing retailer’s quarterly operating expenses also increased to $70.2 million, up 13.2% from $62 million in second quarter 2006.