JoS. A. Bank Clothiers Reports Fiscal Year 2012 Results; Sales Up, Profits Still Good, But Not Up to Normal Levels
03 April 2013 - 9:00PM
JoS. A. Bank Clothiers, Inc. (Nasdaq:JOSB) announces today the
results for its fiscal year ended February 2, 2013 ("fiscal year
2012").
Net sales reached a record of $1,049.3 million in fiscal year
2012, representing a 7.1% gain as compared with net sales of $979.9
million in fiscal year 2011. Comparable store sales decreased 0.5%
during fiscal year 2012, while Direct Marketing sales increased
22.7%. Combined comparable store and Internet sales in fiscal year
2012 increased 2.0% when compared to fiscal year 2011.
Net income for fiscal year 2012 was $79.7 million, as compared
with net income of $97.5 million for the fiscal year ended
January 28, 2012 ("fiscal year 2011"), a decrease of 18.3%.
The Company previously announced that net income for fiscal year
2012 was expected to be approximately 20% lower than net income for
fiscal year 2011. Earnings per share for fiscal year 2012 were
$2.84 as compared with earnings per share of $3.49 for fiscal year
2011.
Commenting on the Company's results, R. Neal Black, President
and CEO of JoS. A. Bank Clothiers, Inc. stated: "Although we did
not achieve an increase over the record earnings of fiscal year
2011, we were still very profitable with net income of 7.6% of net
sales in fiscal year 2012. For the first time in our history,
we exceeded the $1 billion sales milestone in fiscal year 2012 and
our Direct Marketing business continued to perform well, with
double-digit sales growth. The Company continues to maintain
very solid cash flows and a strong balance sheet.
Additionally, we opened a total of 46 new stores in fiscal
year 2012, including our 600th store."
"Total company sales for the year were up 7.1%," continued Mr.
Black, "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. For the most recent fourth quarter, sales started out
slowly in November, partly due to Hurricane Sandy and the
distractions of the national election. Going into the critical
holiday selling season, we believed we had a strong marketing and
promotional strategy for the period. However, many of the
promotional items and a large part of our holiday assortment were
items that sell in cold weather and the weather was unseasonably
warm. During this period, our customers responded well to our
suit promotions, but our promotions on other products such as
sweaters, outerwear, hats, gloves, scarves and jackets were not
successful."
"In 2013, once the cold weather clearance period is complete,
one of our goals will be to return to previous levels of gross
margin rates and advertising productivity. New and more focused
casual assortments and additional slim-fit suit inventories are
arriving this spring. During the first eight weeks of fiscal
2013, sales were up as compared to last year. However, we
remain cautious about the first quarter of 2013, especially since
we have not fully annualized the calendar shift for Easter and the
larger volume sales periods are still ahead of us," stated Mr.
Black.
A conference call to discuss the fiscal year 2012
earnings will be held Thursday, April 4, 2013 at 11:00 a.m. Eastern
Time (ET). To join the call please dial (USA) 877-209-9922 or
(International) 612-332-0932 at least five minutes before 11:00
a.m. ET. A replay of the conference call will be available after
1:00 p.m. ET on April 4, 2013 until April 11, 2013 at 11:59 p.m. ET
by dialing (USA) 800-475-6701 or (International) 320-365-3844. The
access code for the replay will be 286177. In addition, a
webcast replay of the conference call will be posted on the
investor relations section of our website:
www.josbank.com.
JoS. A. Bank Clothiers, Inc., established in 1905, is one of the
nation's leading designers, manufacturers and retailers of men's
classically-styled tailored and casual clothing, sportswear,
footwear and accessories. The Company sells its full product line
through 603 stores in 44 states and the District of Columbia, a
nationwide catalog and an e-commerce website that can be accessed
at www.josbank.com. The Company is headquartered in Hampstead, Md.,
and its common stock is listed on the NASDAQ Global Select Market
under the symbol "JOSB."
Our statements concerning future operations contained herein are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those forecasted due to a variety of factors
outside of our control that can affect our operating results,
liquidity, and financial condition. Such factors include risks
associated with economic, weather, public health and other factors
affecting consumer spending, (including negative changes to
consumer confidence and other recessionary pressures), higher
energy and security costs, the successful implementation of our
growth strategy, (including our ability to finance our expansion
plans), the mix and pricing of goods sold, the effectiveness and
profitability of new concepts, the market price of key raw
materials (such as wool and cotton), seasonality, merchandise
trends and changing consumer preferences, the effectiveness of our
marketing programs, (including compliance with relevant legal
requirements), the availability of suitable lease sites for new
stores, doing business on an international basis, the ability to
source product from our global supplier base, legal and regulatory
matters and other competitive factors. The identified risk factors
and other factors and risks that may affect our business or future
financial results are detailed in our filings with the Securities
and Exchange Commission, including, but not limited to, those
described under "Risk Factors" in our Annual Report on Form 10-K
for the year ended February 2, 2013. These cautionary statements
qualify all of the forward-looking statements we make herein. We
cannot assure you that the results or developments anticipated by
us will be realized or, even if substantially realized, that those
results or developments will result in the expected consequences
for us or affect us, our business or our operations in the way we
expect. We caution you not to place undue reliance on these
forward-looking statements, which speak only as of their respective
dates. Interim period sales are not necessarily indicative of sales
expected for the full quarter. Furthermore, sales are just one
component of earnings and no projection of earnings should be
inferred from any discussion of interim period sales or other
information in this release. We do not undertake an obligation to
update or revise any forward-looking statements to reflect actual
results or changes in our assumptions, estimates or projections.
These risks should be carefully reviewed before making any
investment decision.
JOS. A. BANK CLOTHIERS,
INC. |
CONSOLIDATED BALANCE
SHEETS |
AS OF JANUARY 28,
2012 AND FEBRUARY 2, 2013 |
|
|
|
|
January 28,
2012 |
February 2,
2013 |
|
(In thousands, except
share information) |
ASSETS |
|
|
CURRENT ASSETS: |
|
|
Cash and cash
equivalents |
$ 87,230 |
$ 71,288 |
Short-term
investments |
240,252 |
305,833 |
Accounts receivable,
net |
15,906 |
10,644 |
Inventories |
304,655 |
330,502 |
Prepaid expenses and other
current assets |
20,886 |
23,922 |
Total current assets |
668,929 |
742,189 |
NONCURRENT ASSETS: |
|
|
Property, plant and equipment,
net |
144,392 |
152,360 |
Other noncurrent
assets |
291 |
298 |
Total assets |
$ 813,612 |
$ 894,847 |
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
$ 66,664 |
$ 53,782 |
Accrued expenses |
92,937 |
104,639 |
Deferred tax liability —
current |
8,479 |
11,928 |
Total current
liabilities |
168,080 |
170,349 |
NONCURRENT LIABILITIES: |
|
|
Deferred rent |
47,600 |
45,531 |
Deferred tax liability —
noncurrent |
11,973 |
9,791 |
Other noncurrent
liabilities |
1,025 |
1,613 |
Total liabilities |
228,678 |
227,284 |
COMMITMENTS AND
CONTINGENCIES |
|
|
STOCKHOLDERS' EQUITY: |
|
|
Preferred stock, $1.00 par,
500,000 shares authorized, none issued or outstanding |
— |
— |
Common stock, $0.01 par,
45,000,000 shares authorized, 27,622,054 issued and outstanding at
January 28, 2012 and 27,827,837 issued and outstanding at February
2, 2013 |
277 |
279 |
Additional paid-in
capital |
91,766 |
94,757 |
Retained earnings |
493,022 |
572,718 |
Accumulated other comprehensive
income (loss) |
(131) |
(191) |
Total stockholders'
equity |
584,934 |
667,563 |
Total liabilities and
stockholders' equity |
$ 813,612 |
$ 894,847 |
|
|
|
Note: The foregoing audited
Consolidated Balance Sheets are excerpts from our Consolidated
Financial Statements (as of January 28, 2012 and as of February 2,
2013) and do not include the Notes, which are an integral part
thereof. The foregoing audited financial information should be
read in conjunction with the Company's Annual Report on Form 10-K
for the fiscal year ended February 2, 2013 which was filed with the
Securities and Exchange Commission on April 3, 2013. |
|
JOS. A. BANK CLOTHIERS,
INC. |
CONSOLIDATED STATEMENTS
OF INCOME |
FOR THE YEARS ENDED
JANUARY 29, 2011, JANUARY 28, 2012 AND FEBRUARY 2,
2013 |
|
|
|
|
|
Fiscal Year |
|
2010 |
2011 |
2012 |
|
(In thousands, except
per share information) |
NET SALES |
$ 858,128 |
$ 979,852 |
$ 1,049,313 |
Cost of goods sold |
320,585 |
371,577 |
437,551 |
GROSS PROFIT |
537,543 |
608,275 |
611,762 |
OPERATING EXPENSES: |
|
|
|
Sales and marketing, including
occupancy costs |
326,464 |
372,268 |
409,150 |
General and
administrative |
69,472 |
76,600 |
74,172 |
Total operating expenses |
395,936 |
448,868 |
483,322 |
OPERATING INCOME |
141,607 |
159,407 |
128,440 |
OTHER INCOME (EXPENSE): |
|
|
|
Interest income |
589 |
347 |
429 |
Interest expense |
(136) |
(312) |
(26) |
Total other income (expense) |
453 |
35 |
403 |
Income before provision for income
taxes |
142,060 |
159,442 |
128,843 |
Provision for income taxes |
56,261 |
61,951 |
49,147 |
NET INCOME |
$ 85,799 |
$ 97,491 |
$ 79,696 |
PER SHARE INFORMATION |
|
|
|
Earnings per share: |
|
|
|
Basic |
$ 3.11 |
$ 3.51 |
$ 2.86 |
Diluted |
$ 3.08 |
$ 3.49 |
$ 2.84 |
Weighted average shares outstanding: |
|
|
|
Basic |
27,553 |
27,757 |
27,901 |
Diluted |
27,851 |
27,961 |
28,013 |
|
|
|
|
Note: The foregoing audited
Consolidated Statements of Income are excerpts from our
Consolidated Financial Statements for each of the three years ended
February 2, 2013 and do not include the Notes, which are considered
an integral part thereof. The foregoing audited financial
information should be read in conjunction with the Company's Annual
Report on Form 10-K for the fiscal year ended February 2, 2013
which was filed with the Securities and Exchange Commission on
April 3, 2013. |
|
JOS. A. BANK CLOTHIERS,
INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
FOR THE YEARS ENDED
JANUARY 29, 2011, JANUARY 28, 2012 AND FEBRUARY 2,
2013 |
|
|
|
|
|
Fiscal Year |
|
2010 |
2011 |
2012 |
|
(In
thousands) |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ 85,799 |
$ 97,491 |
$ 79,696 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
|
Depreciation and
amortization |
24,479 |
26,101 |
28,521 |
Loss on disposals of property,
plant and equipment |
357 |
311 |
269 |
Asset impairment
charges |
1,215 |
294 |
805 |
Non-cash equity
compensation |
1,252 |
2,547 |
2,236 |
Increase in deferred
taxes |
2,751 |
11,029 |
1,267 |
Changes in assets and liabilities: |
|
|
|
(Increase) decrease in accounts
receivable |
(3,665) |
(6,381) |
5,262 |
(Increase) in
inventories |
(14,989) |
(71,345) |
(25,847) |
(Increase) in prepaids and
other current assets |
(3,459) |
(1,392) |
(3,004) |
(Increase) decrease in
non-current assets |
83 |
46 |
(7) |
Increase (decrease) in accounts
payable |
13,280 |
35,159 |
(12,882) |
Increase (decrease) in accrued
expenses |
1,738 |
(77) |
9,782 |
(Decrease) in deferred
rent |
(2,574) |
(1,679) |
(2,069) |
Increase (decrease) in other
noncurrent liabilities |
(28) |
(288) |
496 |
Net cash provided by operating
activities |
106,239 |
91,816 |
84,525 |
CASH FLOWS USED IN INVESTING
ACTIVITIES: |
|
|
|
Payments for capital
expenditures |
(29,352) |
(37,531) |
(35,643) |
Proceeds from maturities of
short-term investments |
169,736 |
393,424 |
480,089 |
Payments to acquire short-term
investments |
(189,789) |
(443,887) |
(545,670) |
Net cash (used in) investing
activities |
(49,405) |
(87,994) |
(101,224) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Income tax benefit from stock
compensation plans |
1,300 |
1,883 |
607 |
Net proceeds from issuance of
common stock |
1,013 |
546 |
784 |
Fractional share
payments |
(21) |
— |
— |
Tax payments related to
equity compensation plans |
— |
— |
(634) |
Net cash provided by financing
activities |
2,292 |
2,429 |
757 |
Net increase (decrease) in cash and cash
equivalents |
59,126 |
6,251 |
(15,942) |
CASH AND CASH EQUIVALENTS, beginning
of year |
21,853 |
80,979 |
87,230 |
CASH AND CASH EQUIVALENTS, end of
year |
$ 80,979 |
$ 87,230 |
$ 71,288 |
|
|
|
|
Note: The foregoing audited
Consolidated Statements of Cash Flows are excerpts from our
Consolidated Financial Statements for each of the three years ended
February 2, 2013 and do not include the Notes, which are considered
an integral part thereof. The foregoing audited financial
information should be read in conjunction with the Company's Annual
Report on Form 10-K for the fiscal year ended February 2, 2013
which was filed with the Securities and Exchange Commission on
April 3, 2013. |
CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, Md. David E.
Ullman EVP/CFO 410-239-5715 or Investor Relations Information
Request Website
(http://phx.corporate-ir.net/phoenix.zhtml?c=113815&p=irol-inforeq),
or Investor Relations Voicemail, 410-239-5900 E-commerce Address
for JoS. A. Bank Clothiers, Inc.: www.josbank.com
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