JoS. A. Bank Q3 Profit Rises Amid Revenue Growth

(RTTNews) - Retailer JoS. A. Bank Clothiers, Inc. (JOSB), which recently received an acquisition proposal from Men's Wearhouse, Inc. (MW), Thursday reported a slightly higher profit for the third quarter, helped by increased revenues, even as expenses increased.

The third quarter of fiscal year 2013 ended on November 2 while the third quarter of fiscal year 2012 ended on October 27.

Two months ago, JoS. A. Bank offered to buy Men's Wearhouse for $2.3 billion, which was rejected by that larger peer. On November 15, JoS. A. Bank withdrew its all-cash proposal as the board of Men's Wearhouse did not engage in good faith negotiations by November 14.

On November 26, Men's Wearhouse floated an offer to acquire Jos. A. Bank for $55.00 per share in an all-cash deal valued at about $1.2 billion.

Net income for the third quarter rose to $13.62 million or $0.49 per share from $13.31 million or $0.47 per share for the third quarter of fiscal year 2012.

The latest results included $1.2 million of legal and professional expenses incurred in connection with the company's acquisition proposal for Men's Wearhouse.

Adjusted earnings per share were $0.51. Two analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the third-quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter improved to $247.47 million from $232.85 million in the prior year. Analysts estimated revenues of $244.99 million for the quarter.

Comparable store sales decreased 0.1 percent and Direct Marketing sales increased 23.5 percent. Combined comparable store and Internet sales increased 2.4 percent.

Total operating expenses increased to $120.55 million from $111.48 million in the prior year.

Neal Black, CEO, said, "Our performance in the third quarter is a strong indication that we are taking the right actions to improve both our top and bottom lines. In particular, the customer is responding well to the changes we are making in the promotional side of our business and our non-promotional business continues to grow strongly.''

JOSB closed at $56.89 on Wednesday, up 0.6 percent from the previous close.