JOSB Jos. A. Bank Clothiers, Inc. (MM)

JoS. A. Bank Clothiers, Inc. (Nasdaq Global Select Market: JOSB) announces that net income for the third quarter of fiscal year 2009, as compared to the third quarter of fiscal year 2008, increased 26% to $11.7 million. Earnings per share for the third quarter of fiscal year 2009 increased 26% to $0.63 per share, as compared to $0.50 per share for the third quarter of fiscal year 2008. Total sales for the third quarter of fiscal year 2009 increased 8.1% to $161.3 million from $149.3 million in the third quarter of fiscal year 2008, while comparable store sales increased 3.3% and Direct Marketing sales increased 21.2%. The third quarter of fiscal year 2009 ended October 31, 2009; the third quarter of fiscal year 2008 ended November 1, 2008.

“Despite the continued pressure we are facing from the difficult national economy, our business model is performing very well,” commented R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “With this quarter’s results, we have achieved earnings growth in 32 of the past 33 quarters when compared to the respective prior year periods, including 14 quarters in a row,” continued Mr. Black.

Comparing the first nine months of fiscal year 2009 with the first nine months of fiscal year 2008, net income increased 27% to $35.7 million, as compared to $28.0 million and earnings per share increased 27% to $1.93 per share, as compared to $1.52 per share. Total sales for the first nine months of fiscal year 2009 increased 9.7% to $491.0 million from $447.4 million for the first nine months of fiscal year 2008 while comparable store sales increased 4.6% and Direct Marketing sales increased 7.4%.

A conference call to discuss the third quarter of fiscal year 2009 earnings will be held Thursday, December 3, 2009 at 11:00 a.m. Eastern Time (ET). To join in the call please dial (USA) 888-781-3339 or (International) 703-546-4240 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 December 3, 2009 until December 10, 2009 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 125369. In addition, a webcast replay of the conference call will be posted on the investor relations section of our website: www.josbank.com (select “Company Information” and “Investor Relations”).

All earnings per share amounts in this news release represent diluted earnings per share.

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 474 stores in 42 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.”

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 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 the Company’s growth strategy, including the ability of the Company to finance its 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 the Company’s marketing programs, the availability of suitable lease sites for new stores, doing business on an international basis, the ability to source product from its global supplier base, legal matters and other competitive factors. The identified risk factors and other factors and risks that may affect the Company’s business or future financial results are detailed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended January 31, 2009 and the Company’s subsequent Quarterly Reports on Form 10-Q filed through the date hereof. 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. The Company does not undertake an obligation to update or revise any forward-looking statements to reflect actual results or changes in the Company’s assumptions, estimates or projections. These risks should be carefully reviewed before making any investment decision.

    JOS. A. BANK CLOTHIERS, INC. Condensed Consolidated Balance Sheets (In Thousands)   January 31, 2009 October 31, 2009 (Audited) (Unaudited)   ASSETS CURRENT ASSETS: Cash and cash equivalents $ 122,875 $ 41,914 Short-term investments - 64,879 Accounts receivable, net 7,404 13,253 Inventories: Finished goods 199,886 241,705 Raw materials   9,356   10,149 Total inventories 209,242 251,854 Prepaid expenses and other current assets   17,776   17,557   Total current assets 357,297 389,457   NONCURRENT ASSETS: Property, plant and equipment, net 133,588 128,439 Other noncurrent assets   481   746 Total assets $ 491,366 $ 518,642   LIABILITIES AND STOCKHOLDERS’ EQUITY   CURRENT LIABILITIES: Accounts payable $ 29,774 $ 33,695 Accrued expenses 74,792 63,901 Deferred tax liability – current   6,604   6,760 Total current liabilities 111,170 104,356   NONCURRENT LIABILITIES: Deferred rent 54,743 53,259 Deferred tax liability – noncurrent 2,605 2,249 Other noncurrent liabilities   1,035   1,175 Total liabilities   169,553   161,039   COMMITMENTS AND CONTINGENCIES   STOCKHOLDERS’ EQUITY: Common stock 182 182 Additional paid-in capital 82,951 83,046 Retained earnings 238,668 274,363 Accumulated other comprehensive income   12   12 Total stockholders’ equity   321,813   357,603 Total liabilities and stockholders’ equity $ 491,366 $ 518,642   Note: The foregoing audited and unaudited Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Financial Statements (as of January 31, 2009 and October 31, 2009) and do not include the Notes, which are an integral part thereof. The foregoing unaudited financial information should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 31, 2009 and the Annual Report on Form 10-K for the fiscal year ended January 31, 2009, which were filed with the Securities and Exchange Commission on December 2, 2009 and April 8, 2009, respectively.           JOS. A. BANK CLOTHIERS, INC. Condensed Consolidated Statements of Income (In Thousands, Except Per Share Information) (unaudited)   Three Months Ended Nine Months Ended

November 1,

2008

October 31,

2009

November 1,

2008

October 31,

2009

  Net sales $ 149,274 $ 161,309 $ 447,412 $ 490,969   Cost of goods sold   54,980     60,502     166,900     188,531     Gross profit   94,294     100,807     280,512     302,438     Operating expenses: Sales and marketing, including occupancy costs 66,209 67,450 193,773 200,079 General and administrative   14,231     14,043     41,269     43,514   Total operating expenses   80,440     81,493     235,042     243,593     Operating income 13,854 19,314 45,470 58,845   Other income (expense): Interest income 169 101 793 262 Interest expense   (103 )   (93 )   (289 )   (301 ) Total other income (expense)   66     8     504     (39 )   Income before provision for income taxes 13,920 19,322 45,974 58,806 Provision for income taxes   4,621     7,594     17,975     23,111     Net income $ 9,299   $ 11,728   $ 27,999   $ 35,695     Per share information: Earnings per share: Basic $ 0.51 $ 0.64 $ 1.54 $ 1.95 Diluted $ 0.50 $ 0.63 $ 1.52 $ 1.93 Weighted average shares outstanding: Basic 18,215 18,292 18,194 18,291 Diluted 18,461 18,532 18,433 18,518   Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our unaudited Condensed Consolidated Financial Statements for the three and nine months ended November 1, 2008 and October 31, 2009 and do not include the Notes, which are an integral part thereof. The foregoing unaudited financial information should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 31, 2009, which was filed with the Securities and Exchange Commission on December 2, 2009.       JOS. A. BANK CLOTHIERS, INC. Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited)   Nine Months Ended November 1, 2008 October 31, 2009   Cash flows from operating activities: Net income $ 27,999 $ 35,695

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization 15,394 16,533 Loss on disposals of property, plant and equipment 227 120 Increase (decrease) in deferred taxes 1,210 (200 ) Net increase in operating working capital and other components   (57,434 )   (57,730 )   Net cash used in operating activities   (12,604 )   (5,582 )   Cash flows from investing activities: Capital expenditures (26,888 ) (10,595 ) Proceeds from disposal of fixed assets 197 - Purchases of short-term investments   -     (64,879 )   Net cash used in investing activities   (26,691 )   (75,474 )   Cash flows from financing activities: Income tax benefit from exercise of stock options 528 57 Net proceeds from exercise of stock options   1,137     38     Net cash provided by financing activities   1,665     95     Net decrease in cash and cash equivalents   (37,630 )   (80,961 )   Cash and cash equivalents – beginning of period   82,082     122,875     Cash and cash equivalents – end of period $ 44,452   $ 41,914     Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our unaudited Condensed Consolidated Financial Statements for the nine months ended November 1, 2008 and October 31, 2009 and do not include the Notes, which are an integral part thereof. The foregoing unaudited financial information should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 31, 2009, which was filed with the Securities and Exchange Commission on December 2, 2009.