JoS. Bank Clothiers (NASDAQ:JOSB) revealed on Wednesday a stronger-than-expected 25% increase in second-quarter profit as discounts for high-end apparel kept customers shopping despite economic uncertainties.
The Hampstead, Md.-based designer of mens tailored and casual clothing and accessories posted a net income of $20.6 million, or 74 cents a share, compared with $16.5 million, or 59 cents a share, in the same quarter last year.
Revenue for the three months ended July 30 was $230.7 million, up 22.4% from $188.4 million a year ago, lifted by a 14.7% improvement in stores open more than a year.
Analysts polled by Thomson Reuters had been expecting on average a profit of just 68 cents on sales of $209.7 million.
With the latest results, the company has achieved earnings growth every quarter but one over the last 10 years, including 21 quarters in a row. The feat is impressive considering retailers across the board have been struggling to contain costs amid fluctuating raw material expenses.
J.oS Bank has been able to stay afloat during tough economic challenges over the last several years because of timely discounting of products, a strategy that has worked to attract customers to luxury brands despite uncertainty in the economy.
While the components of our income statement may fluctuate somewhat from quarter to quarter, our business model, which features an aggressively sourced, high-quality, well-balanced, fully-stocked assortment that is promoted with timely marketing and sold by knowledgeable professionals in convenient locations, continues to deliver strong earnings growth over time, JoS. A. Bank Clothiers CEO Neal Black said in a statement.
Despite impacts from Hurricane Irene, the company said the current quarter is shaping up nicely, as comparable store sales remain slightly higher compared with a year ago.