Jos. A. Bank Clothiers waited until four hours after the stock markets closed Friday to inform investors that it expects its profits for the year to be down about 20 percent after its holiday promotions failed to generate anticipated sales levels.
The guidance, issued at 8:05 p.m. Friday, implies that fourth-quarter profits will be off 39.5 percent, to $26.7 million from $44.1 million in the final quarter of 2011. A 20 percent drop in profits for the year, which ends Feb. 2, would put net income at $78 million, versus $97.5 million in 2011. The projections follow a 11.2 percent drop in third-quarter profits, which missed earnings per share estimates by 9 cents, even as sales rose 11.1 percent to $232.9 million, ahead of analysts’ expectations.
The disclosure was as noteworthy for the size of the miss as for the post-market nature of its timing. The decline, subject to revision based on performance over the remainder of the year, would put EPS for the year at $3.49 on a diluted basis, 27 cents below the $3.76 consensus estimate of analysts.
Furthermore, based on the company’s approximately 28 million shares of common stock outstanding, it implies fourth-quarter EPS of 95 cents a diluted share, nearly 46 percent below the $1.76 EPS tally expected by analysts.
In explaining the anticipated shortfall, R. Neal Black, president and chief executive officer of the Hampstead, Md.-based men’s specialty store chain, mentioned Hurricane Sandy, warm weather and both the presidential election and fiscal cliff drama as sales deterrents.
Despite what Black termed “a strong marketing and promotional strategy” for holiday, customers weren’t drawn to seasonal items, either at full price or on sale. “Our customers…didn’t respond as well to our promotional items as they had in the past,” he said. “Our customers responded well to our suit promotions for this period, but our non-suit customers responded poorly to our holiday season offerings, even at very low prices on products such as sweaters, outerwear, hats, gloves, scarves and jackets made of heavier fabrics such as camel’s hair and cashmere.”
One bright note in the disclosure was of “double-digit sales growth” in direct marketing revenues for the fourth quarter. The company didn’t provide any specific projections for sales, except to say they would be up for the year, although “not enough to offset higher marketing expenses and lower gross margins,” according to Black.
“We continue to remain very positive about the company’s long-term prospects,” the ceo commented, pointing out that sales for the year would exceed $1 billion for the first time. Jos. A. Bank opened its 600th store during the fourth quarter and disclosed plans to expand to 800 units.
During regular trading hours Friday. shares of the retailer rose 52 cents, or 1.1 percent, to $46.27. After-hours trading data weren’t available.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)