Jos. A. Bank Clothiers Inc. reported a nearly 17 percent drop in net income during the first quarter, prompting the Hampstead-based retailer to alter its marketing strategy, the company said Wednesday.
First-quarter net income decreased to $14.8 million, or 53 cents per share, from $17.8 million, or 64 cents per share, in the first three months of last year. Sales increased 4.2 percent, to $201.4 million, from $193.3 million in the first quarter of 2011, the company said. Sales at stores open at least a year and direct marketing sales both fell 1 percent in the quarter that ended April 28.
Net income represented 7.4 percent of sales, compared with 9.2 percent in the comparable period last year, R. Neal Black, president and chief executive, said in a statement.
"Sales started more slowly than we had planned for the first eight weeks of the quarter," Black said. "After making marketing changes beginning in week nine, sales improved substantially."
Black noted that the second quarter has started out stronger than the first, with both same-store sales and direct marketing sales up over last year.
Black was hopeful.
"Father's Day, the most important selling period of the quarter, is still ahead of us," he said.
The 562-store chain sells tailored and casual clothing, sportswear, footwear and accessories for men.