Exhibit 99.1
JoS. A. Bank Clothiers' Earnings Increase 75%
HAMPSTEAD, Md.--(BUSINESS WIRE)--Sept. 9, 2004--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market: "JOSB") announced net income
of $3.5 million for the second quarter ended July 31, 2004, compared
with net income of $2.0 million in the second quarter of FY2003 -
representing an increase of 75% and another record quarter for the
Company when compared with the prior-year period. Earnings per share
increased to $0.25 in the most recent quarter, compared with $0.14 in
the three months ended August 2, 2003. For the first half of FY2004,
net income increased 112% to $8.9 million, versus $4.2 million, while
earnings per share reached $0.62, compared with $0.30 in the
corresponding period of the previous fiscal year.
"Strong second quarter operating results were driven by
double-digit comp-store sales gains, continued strength in catalog and
Internet sales, new product innovations, the growing popularity of our
luxurious Signature and Signature Gold product lines, and a dynamic
new store opening program," stated Robert N. Wildrick, Chief Executive
Officer of JoS. A. Bank Clothiers, Inc.
"We opened 20 new stores during the six months ended July 31,
2004," continued Wildrick. "Our plans call for the opening of
approximately 40 additional stores during the second half of the
fiscal year, including at least four more stores each in California,
Texas and Florida and our first stores in Seattle, Washington. Also,
the Company's new brand-building media campaign, which will play a key
role in positioning JoS. A. Bank as the premiere upscale menswear
brand in the U.S., will be launched in November 2004 with a series of
television and selective magazine advertisements."
As previously reported, total sales for the second quarter ended
July 31, 2004 increased 27.3% to $82.0 million, compared with $64.4
million in the second quarter of 2003. Comparable store sales
increased 10.2% in the second quarter of 2004, while combined catalog
and Internet sales rose 17.9%. Total sales for the six months ended
July 31, 2004 increased 27.8% to $161.9 million, compared with $126.7
million in the first half of the previous fiscal year. Comparable
store sales increased 11.9% in the six months ended July 31, 2004,
while combined catalog and Internet sales rose 18.3%.
All earnings per share amounts discussed herein refer to diluted
earnings per share and reflect the impact of a 50% stock dividend that
was distributed to stockholders on February 18, 2004 and a 25% stock
dividend that was distributed to stockholders on August 18, 2004.
A conference call to discuss the Company's operating results is
scheduled for 11:00 A.M. Eastern Time, today, September 9, 2004. To
participate in the conference call today, please call 888-428-4479 a
few minutes before 11:00 a.m. Eastern Time. A replay of the conference
call will be available until September 16, 2004 by dialing (USA)
800-475-6701 or (International) 320-365-3844. The access code for the
replay will be 740555.
JoS. A. Bank Clothiers, Inc., established in 1905, is one of the
nation's leading retailers of men's classically-styled tailored and
casual clothing, sportswear, footwear and accessories. The Company
sells its full product line through 237 stores in 36 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
National Market under the symbol "JOSB".
The Company's 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 forecast due to a variety of factors
outside of the Company's control that can affect the Company's
operating results, liquidity and financial condition such as risks
associated with economic, weather, public health and other factors
affecting consumer spending, the ability of the Company to finance its
expansion plans, the mix and pricing of goods sold, the market price
of key raw materials such as wool and cotton, availability of lease
sites for new stores, the ability to source product from its global
supplier base and other competitive factors. These cautionary
statements qualify all of the forward-looking statements the Company
makes herein. The Company cannot assure you that the results or
developments anticipated by the Company will be realized or, even if
substantially realized, that those results or developments will result
in the expected consequences for the Company or affect the Company,
its business or its operations in the way the Company expects. The
Company cautions you not to place undue reliance on these
forward-looking statements, which speak only as of their respective
dates, and assumes no obligation to update any of the forward-looking
statements. These risks should be carefully reviewed before making any
investment decision.
JoS. A. Bank Clothiers, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
Jan. 31, July 31,
2004 2004
---------- ----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 875 $ 784
Accounts receivable, net 4,201 3,942
Inventories:
Raw materials 11,652 10,203
Finished goods 109,136 111,374
--------- ---------
Total inventories 120,788 121,577
--------- ---------
Prepaid expenses and other current assets 10,323 11,133
--------- ---------
Total current assets 136,187 137,436
--------- ---------
NONCURRENT ASSETS:
Property, plant and equipment, net 47,401 49,614
Other noncurrent assets, net 2,923 2,761
--------- ---------
Total assets $ 186,511 $ 189,811
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 28,748 $ 25,259
Accrued expenses and other 33,985 31,093
Current portion of long-term debt 1,245 971
--------- ---------
Total current liabilities 63,978 57,323
--------- ---------
NONCURRENT LIABILITIES:
Long-term debt, net of current portion 28,618 29,399
Deferred rent and other noncurrent
liabilities 6,413 6,016
--------- ---------
Total liabilities 99,009 92,738
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 122 124
Additional paid-in capital 64,207 64,912
Retained earnings 28,231 37,095
--------- ---------
92,560 102,131
Treasury stock (5,058) (5,058)
--------- ---------
Total stockholders' equity 87,502 97,073
--------- ---------
Total liabilities and stockholders'
equity $ 186,511 $ 189,811
========= =========
JoS. A. Bank Clothiers, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except earnings per share)
(unaudited)
Three Months Ended Six Months Ended
Aug. 2, July 31, Aug. 2, July 31,
2003 2004 2003 2004
-------- -------- --------- ---------
Net sales $64,442 $81,994 $126,714 $161,923
Cost of goods sold 28,840 32,883 55,512 63,777
------- ------- -------- --------
Gross Profit 35,602 49,111 71,202 98,146
------- ------- -------- --------
Operating expenses:
Sales and marketing 24,247 32,011 48,361 62,662
General and administrative 7,343 10,253 14,386 18,837
Store opening costs 226 269 592 500
------- ------- -------- --------
Total operating expenses 31,816 42,533 63,339 81,999
------- ------- -------- --------
Operating income 3,786 6,578 7,863 16,147
Interest expense, net 382 433 685 914
------- ------- -------- --------
Income before provision for
income taxes 3,404 6,145 7,178 15,233
Provision for income taxes 1,418 2,616 3,018 6,369
------- ------- -------- --------
Net income $ 1,986 $ 3,529 $ 4,160 $ 8,864
======= ======= ======== ========
Earnings per share:
Net income:
Basic $ 0.17 $ 0.26 $ 0.36 $ 0.67
Diluted $ 0.14 $ 0.25 $ 0.30 $ 0.62
Weighted average shares
outstanding:
Basic 11,678 13,330 11,651 13,288
Diluted 13,794 14,196 13,689 14,204
Note: On January 13, 2004, the Company's Board of Directors
declared a 50% stock dividend payable on February 18, 2004 to
stockholders of record as of January 30, 2004. On June 8, 2004, the
Company's Board of Directors declared a 25% stock dividend payable on
August 18, 2004 to stockholders' of record as of July 30, 2004. All
historical weighted average share and per share amounts noted herein
have been adjusted to reflect the stock dividends.
CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, MD
David E. Ullman, EVP/CFO, 410-239-5715
or
RJ Falkner and Company, Inc.
Investor Relations Counsel
R. Jerry Falkner, CFA
800-377-9893
info@rjfalkner.com
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com