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 2010 increased 7.1% to $12.6 million, as compared to $11.7 million for the third quarter of fiscal year 2009. Earnings per share for the third quarter of fiscal year 2010 increased 7.1% to $0.45 per share, as compared to $0.42 per share for the third quarter of fiscal year 2009. The third quarter of fiscal year 2010 ended October 30, 2010; the third quarter of fiscal year 2009 ended October 31, 2009.

Total sales for the third quarter of fiscal year 2010 increased 7.4% to $173.3 million from $161.3 million in the third quarter of fiscal year 2009, while comparable store sales increased 3.0% and Direct Marketing sales increased 14.9%.

Comparing the first nine months of fiscal year 2010 with the first nine months of fiscal year 2009, net income increased 25.6% to $44.9 million, as compared to $35.7 million and earnings per share increased 24.8% to $1.61 per share, as compared to $1.29 per share. Total sales for the first nine months of fiscal year 2010 increased 9.9% to $539.8 million from $491.0 million for the first nine months of fiscal year 2009, while comparable store sales increased 7.6% and Direct Marketing sales increased 8.4%.

“Sales for the quarter were positive but started out below plan in August and then picked up in September and October with each month getting progressively better, and then were even stronger in November and early December,” commented R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. "The hot weather in August was hard on us and it was tough to stage a big rebound after that due to the election; however, with these third quarter results, we have achieved record earnings growth in 36 of the past 37 quarters when compared to the respective prior year periods, including 18 quarters in a row. Right now, to date, the fourth quarter has started out strong. November suit sales and total sales were up substantially compared to last year and were ahead of our plans. Our fourth quarter results last year were very strong. Therefore we remain cautious, but our merchandising and marketing plans are in place for the most important selling period of the quarter and the year and we have confidence in those plans,” continued Mr. Black.

All earnings per share amounts in this news release represent diluted earnings per share. All share and per share amounts of common shares included in this release have been adjusted to reflect the stock split in the form of a 50% stock dividend distributed on August 18, 2010.

A conference call to discuss the third quarter of fiscal year 2010 earnings will be held Thursday, December 2, 2010 at 11:00 a.m. Eastern Time (ET). To join in the call please dial (USA) 800-230-1074 or (International) 612-234-9959 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 2, 2010 until December 9, 2010 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 182157. 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”).

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 502 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 30, 2010 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. AND SUBSIDIARIES Condensed Consolidated Statements of Income (In Thousands Except Per Share Data) (Unaudited)           Three Months Ended Nine Months Ended October 31, 2009 October 30, 2010 October 31, 2009 October 30, 2010   Net sales $ 161,309 $ 173,268 $ 490,969 $ 539,805   Cost of goods sold   60,502     62,429     188,531     197,320     Gross profit   100,807     110,839     302,438     342,485     Operating expenses: Sales and marketing, including occupancy costs 67,450 73,961 200,079 218,228 General and administrative   14,043     16,421     43,514     50,332   Total operating expenses   81,493     90,382     243,593     268,560     Operating income 19,314 20,457 58,845 73,925   Other income (expense): Interest income 101 148 262 422 Interest expense   (93 )   (33 )   (301 )   (128 ) Total other income (expense)   8     115     (39 )   294     Income before provision for income taxes 19,322 20,572 58,806 74,219 Provision for income taxes   7,594     8,009     23,111     29,369     Net income $ 11,728   $ 12,563   $ 35,695   $ 44,850     Per share information: Earnings per share: Basic $ 0.43 $ 0.46 $ 1.30 $ 1.63 Diluted $ 0.42 $ 0.45 $ 1.29 $ 1.61 Weighted average shares outstanding: Basic 27,438 27,534 27,437 27,529 Diluted 27,798 27,849 27,778 27,831  

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 October 31, 2009 and October 30, 2010 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 30, 2010, which was filed with the Securities and Exchange Commission on December 1, 2010.

  JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In Thousands)       January 30, 2010 October 30, 2010 (Audited) (Unaudited)   ASSETS CURRENT ASSETS: Cash and cash equivalents $ 21,853 $ 98,507 Short-term investments 169,736 79,746 Accounts receivable, net 5,860 11,950 Inventories: Finished goods 209,443 258,328 Raw materials   8,878   10,373 Total inventories 218,321 268,701 Prepaid expenses and other current assets   16,035   27,949   Total current assets 431,805 486,853   NONCURRENT ASSETS: Property, plant and equipment, net 124,139 133,742 Other noncurrent assets   420   533 Total assets $ 556,364 $ 621,128   LIABILITIES AND STOCKHOLDERS’ EQUITY   CURRENT LIABILITIES: Accounts payable $ 18,225 $ 44,991 Accrued expenses 85,256 76,726 Deferred tax liability – current   5,064   4,595 Total current liabilities 108,545 126,312   NONCURRENT LIABILITIES: Deferred rent 51,853 50,205 Deferred tax liability – noncurrent 1,608 2,532 Other noncurrent liabilities   1,048   878 Total liabilities   163,054   179,927   COMMITMENTS AND CONTINGENCIES   STOCKHOLDERS’ EQUITY: Common stock 183 275 Additional paid-in capital 83,249 86,289 Retained earnings 309,823 354,582 Accumulated other comprehensive income   55   55 Total stockholders’ equity   393,310   441,201 Total liabilities and stockholders’ equity $ 556,364 $ 621,128  

Note: The foregoing audited and unaudited Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Financial Statements (as of January 30, 2010 and October 30, 2010) and do not include the Notes, which are an integral part thereof. The foregoing financial information should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 30, 2010 and the Annual Report on Form 10-K for the fiscal year ended January 30, 2010, which were filed with the Securities and Exchange Commission on December 1, 2010 and March 31, 2010, respectively.

  JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited)       Nine Months Ended October 31, 2009 October 30, 2010   Cash flows from operating activities: Net income $ 35,695 $ 44,850

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization 16,533 18,107 Loss on disposals of property, plant and equipment 120 150 Non-cash equity compensation - 701 Increase (decrease) in deferred taxes (200 ) 455 Net (increase) in operating working capital and other components   (57,730 )   (59,194 )   Net cash provided by (used in) operating activities   (5,582 )   5,069     Cash flows from investing activities: Capital expenditures (10,595 ) (20,696 ) Net maturities (purchases) of short-term investments   (64,879 )   89,990     Net cash provided by (used in) investing activities   (75,474 )   69,294     Cash flows from financing activities: Income tax benefit from exercise of stock options 57 1,300 Net proceeds from exercise of stock options 38 1,012 Fractional share payments   -     (21 )   Net cash provided by financing activities   95     2,291     Net increase (decrease) in cash and cash equivalents   (80,961 )   76,654     Cash and cash equivalents – beginning of period   122,875     21,853     Cash and cash equivalents – end of period $ 41,914   $ 98,507    

Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our unaudited Condensed Consolidated Financial Statements for the nine months ended October 31, 2009 and October 30, 2010 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 30, 2010, which was filed with the Securities and Exchange Commission on December 1, 2010.