A change in the weather has failed to produce a change in sales climate at Jos. A. Bank Clothiers Inc.
Reporting lower net and same-store sales and a steep drop in profits for the first quarter that were in line with a warning issued last month, the Hampstead, Md.-based men’s specialty retailer said that disappointing sales continued into May and the second quarter.
“The sales trend has continued into the second quarter of fiscal year 2013 as sales are down for the fiscal month of May,” said R. Neal Black, president and chief executive officer of the company. “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. As such, we will continue to test, evaluate and refine our merchandising and advertising offerings to optimize the appeal to our customers.”
In the three months ended May 4, net income fell 45.5 percent to $8.1 million, or 29 cents a diluted share, from $14.8 million, or 53 cents, in the 2012 period. Sales were off 2.6 percent to $196.1 million from $201.4 million, with a 12.6 percent rise in direct marketing revenues not sufficient to offset an 8.5 percent decline in same-store sales. With cost of goods sold rising 4.5 percent as revenues headed in the opposite direction, gross margin stepped back 270 basis points to 60.8 percent of sales from 63.5 percent a year ago.
Black noted that the bulk of the first-quarter sales decline came in April and that gross margins fell “primarily due to higher inventory sourcing costs and lower average selling prices due mostly to an increased percentage of sales of winter and other clearance products. Like many other retailers, we were also affected by the unseasonably cool weather, which adversely impacted both our sales and gross profit margin.”
Total inventories at quarter’s end stood at $360.4 million, 9 percent higher than they did at the end of the fourth quarter.
The 29-cent earnings per share result duplicated the expectations of analysts, who brought estimates down after the company said on May 13, in wording almost identical to that used in its financial results report Wednesday, that earnings were expected to be between 27 and 30 cents. Revenues landed slightly above the $195.4 million expected by analysts, an average based on Jos. A. Bank’s statement last month that sales for the quarter were down 3 percent.
On a trading day marked by broad declines in equities, Bank’s shares declined $1.74, or 3.9 percent, to $42.96.
The profit warning last month was similar to one issued in January regarding the company’s fourth-quarter and year-end 2012 results. Earnings in last year’s final quarter dropped 35.7 percent to $28.4 million as sales rose 2.4 percent to $354.8 million. But the ferocity of promotions needed to create holiday sales sent gross margin down 410 basis points, to 55.9 percent of sales.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye