Jos A Bank results beat as online sales grow, shares up
(Reuters) - Men's apparel and accessories retailer JoS A Bank Clothiers Inc's JOSB.O quarterly results handily beat Wall Street estimates as it attracted more online shoppers.
The company's stock moved up more than 18 percent to $49.37 on the Nasdaq in early trading.
JoS A Bank, which competes with Men's Wearhouse Inc (MW.N), has set up Amazon.com Inc (AMZN.O) and eBay Inc (EBAY.O) stores, aiming for a bigger slice of shoppers' wallets by catering to different consumers than the ones who come to their own websites and physical stores.
Sales at its direct marketing segment, which comprises the Internet and catalog call centers, rose 39.3 percent for the second quarter. The segment recorded higher sales in August compared to last year, the company said.
Direct marketing, driven primarily by Internet sales, accounted for about 10 percent of total sales last year.
Several retailers are looking to grow into the online market place by setting up storefronts on Amazon and eBay.
JoS A Bank also signed up for PayPal's in-store service in May that allows shoppers to pay through their mobile phones, making purchases at brick-and-mortar stores easier.
Comparable store sales increased 6.1 percent for three months ended July 28. Total sales rose 12.9 percent to $260.3 million.
Earnings went up to $23.2 million, or 83 cents a share, from $20.6 million, or 74 cents a share, a year earlier.
Analysts on average expected the company to post earnings of 73 cents on a revenue of $251.1 million, according to Thomson Reuters I/B/E/S.
Hampstead, Maryland-based JoS A Bank, which has 572 stores in 44 states and the District of Columbia, plans to open about 45 to 50 stores each in fiscal 2012 and 2013.
The company's shares were up 16 percent at $48.37, making them one of the top gainers on the Nasdaq on Wednesday morning.
The stock lost 20 percent of its value in the last six months after unattractive merchandise and a warmer winter pushed shoppers away in previous quarters.
Shares of rival Men's Wearhouse were up 3.5 percent at $31.82 on the New York Stock Exchange on Wednesday.
(Reporting by Juhi Arora in Bangalore; Editing by Saumyadeb Chakrabarty)
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