JoS. A. Bank Clothiers Reports Fiscal Year 2012 Results; Sales Up, Profits Still Good, But Not Up to Normal Levels

JoS. A. Bank Clothiers Reports Fiscal Year 2012 Results; Sales Up, Profits Still Good, But Not Up to Normal Levels  HAMPSTEAD, Md., April 3, 2013 (GLOBE NEWSWIRE) -- 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 January28, 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 JANUARY28, 2012 AND FEBRUARY2, 2013                                                                                            January28, 2012       February2, 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 20,886                 23,922 assets Total current assets              668,929                742,189 NONCURRENT ASSETS:                                        Property, plant and equipment,     144,392                152,360 net 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 —           11,973                 9,791 noncurrent 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  277                    279 at January 28, 2012 and 27,827,837 issued and outstanding at February 2, 2013 Additional paid-in capital        91,766                 94,757 Retained earnings                 493,022                572,718 Accumulated other comprehensive    (131)                  (191) income (loss) Total stockholders' equity        584,934                667,563 Total liabilities and              $813,612             $894,847 stockholders' equity                                                          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 JANUARY29, 2011, JANUARY28, 2012 AND FEBRUARY2, 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,        326,464          372,268          409,150 including occupancy costs 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          453              35               403 (expense) Income before provision for 142,060          159,442          128,843 income taxes 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 JANUARY29, 2011, JANUARY28, 2012 AND FEBRUARY2, 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,   357             311            269 plant and equipment 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  (3,665)         (6,381)        5,262 receivable (Increase) in inventories       (14,989)        (71,345)       (25,847) (Increase) in prepaids and other (3,459)         (1,392)        (3,004) current assets (Increase) decrease in           83              46             (7) non-current assets Increase (decrease) in accounts  13,280          35,159         (12,882) payable Increase (decrease) in accrued   1,738           (77)           9,782 expenses (Decrease) in deferred rent     (2,574)         (1,679)        (2,069) Increase (decrease) in other     (28)            (288)          496 noncurrent liabilities Net cash provided by operating   106,239         91,816         84,525 activities CASH FLOWS USED IN INVESTING                                   ACTIVITIES: Payments for capital             (29,352)        (37,531)       (35,643) expenditures Proceeds from maturities of      169,736         393,424        480,089 short-term investments Payments to acquire short-term   (189,789)       (443,887)      (545,670) investments Net cash (used in) investing     (49,405)        (87,994)       (101,224) activities CASH FLOWS FROM FINANCING                                      ACTIVITIES: Income tax benefit from stock    1,300           1,883          607 compensation plans Net proceeds from issuance of    1,013           546            784 common stock Fractional share payments       (21)            —              — Tax payments related to equity  —               —              (634) compensation plans Net cash provided by financing   2,292           2,429          757 activities Net increase (decrease) in cash  59,126          6,251          (15,942) and cash equivalents CASH AND CASH EQUIVALENTS,       21,853          80,979         87,230 beginning of year CASH AND CASH EQUIVALENTS, end   $80,979       $87,230      $71,288 of year                                                               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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