Jos. A. Bank Soars After Q2 Report
Jos. A. Bank (NASDAQ: JOSB) released its fiscal second quarter earnings results prior to the opening bell on Wednesday. Prior to the release, the stock had been trending persistently lower throughout 2012. Shares hit a year-to-date high in late March at just below $55.00 and have subsequently been falling.
On Wednesday, traders have been reacting to a strong earnings report, pushing the stock up better than 15 percent to above $48.00. The sharp rise in the stock has erased most of the year-to-date losses for JOSB. Currently, shares are down a little more than one percent in 2012 after Wednesday's big pop.
The company reported a 12.7 percent increase in net income for the fiscal second quarter. Income was $23.2 million or $0.83 per share, versus $20.6 million or $0.74 in last year's second quarter. This exceeded Wall Street analysts' consensus EPS estimates of $0.73 by a wide margin.
Total sales in the quarter were up 12.9 percent to $260.3 million, compared to $230.7 million last year. This also came in better than the consensus Wall Street estimate of $251.08 million.
Comparable store sales at Jos. A. Bank were up 6.1 percent, highlighting the company's strong operating momentum in the quarter.
Management also updated its forward-looking plans for the company. Jos. A. Bank now believes that the chain can grow to approximately 800 total stores. This is above a prior assessment which the company provided several years ago which said that the chain could grow to 650 to 675 total stores.
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