By Lorraine Mirabella, The Baltimore Sun
7:22 PM EST, January 28, 2013
Shares of men's retailer Jos. A. Bank Clothiers Inc. fell nearly $7 per share on Monday after the Hampstead company said its profit for the current fiscal year will be down 20 percent.
The stock ended Nasdaq trading at $39.28 a share, down 15 percent.
Bank's 2012 fiscal year ends Feb. 2. Final results will depend on sales and expenses for the rest of the fiscal year, the company said. The company reported income of $97.5 million in its fiscal 2011.
Sales for the year will be up, but not enough to offset higher marketing expenses and a lower gross margin, said CEO and President R. Neal Black in a statement. He said fourth quarter sales were hurt by the aftermath of Hurricane Sandy and uncertainties surrounding the fiscal cliff and presidential election.
"We are disappointed that we were not able to drive the sales gains we had expected," Black said in a statement. "Going into the critical holiday selling season, starting on Black Friday, we believed we had a strong marketing and promotional strategy for the period. However, many of the promotional items and a large part of our holiday assortment were items that sell best in cold weather and the weather was unseasonably warm."
The company opened its 600th store last year, one of 46 new stores, and plans to open up to 50 more locations in the next fiscal year.
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