By John Kell
Men's retailer Jos. A. Bank Clothiers Inc. (JOSB) expects fiscal
second-quarter results will fall far short of expectations, as a
highly promotional marketing campaign failed to resonate with
consumers and led to a surprise sales decline.
Shares dropped 4.9% to $41.92 in after-hours trading.
The disappointing second-quarter commentary comes two days after
BeaconLight Capital, a firm that owns more than 1% of the
retailer's shares, blasted the company's board and management for
not better communicating with analysts and investors, and holding
far too much cash.
Jos. A. Bank estimates second-quarter sales declined 11% from a
year ago, and per-share earnings for the period ended Aug. 3 are
expected to range between 49 cents to 53 cents a share.
Analysts surveyed by Thomson Reuters had most recently projected
a profit of 68 cents on 3% sales growth.
A number of retailers, including Wal-Mart Stores Inc. (WMT) and
Macy's Inc. (M), have posted disappointing quarterly results in
recent days, heightening the concern about spending ahead of the
key back to school shopping season.
For its part, Jos. A. Bank President and Chief Executive R. Neal
Black said the company would focus on improving marketing events
and related media placement to drive sales. That hopeful tone comes
even after the retailer admitted a high sales volume marketing
campaign in the latest quarter was less successful than a year
ago.
Write to John Kell at john.kell@wsj.com
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