Jos. A. Bank Clothiers Inc. expects profits to drop in the second quarter, the Hampstead-based retailer announced Thursday.
Earnings are expected to decline to about 49 cents to 53 cents per share, compared with 83 cents per share in the second quarter of 2012, the company said. Sales fell about 11 percent in the three-month period that ended Aug. 3, but the gross profit margin rate stabilized, said CEO R. Neal Black in a statement.
"Customers did not respond as well to some of our highly promotional, high sales volume marketing campaigns as they did in the prior year," and sales fell mostly during the promotional peaks, Black said.
But day-to-day sales on non-promotional items in the chain's 612 stores increased, he said. The men's apparel seller said it pulled back on marketing expenses as it put new and less promotional marketing strategies in place.
"We are highly focused on improving our sales trend, and further improving both our gross profit margin rate and our marketing efficiency over the remainder of fiscal year 2013, with the overall goal of returning to previous years' levels," Black said.