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Jos. A. Bank earnings slip on costs related to takeover

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Jos. A. Bank Clothiers saw its earnings slide in the fourth quarter as the menswear retailer attempted to fight off a takeover by Men's Wearhouse.

The Hampstead-based retailer ultimately succumbed, agreeing to a $1.8 billion merger with its larger rival in March.

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For the quarter ended Feb. 1, Bank reported that it earned $27.4 million, down from $28.4 million in the comparable quarter a year earlier.

Earnings per share slipped to 98 cents from $1.01. Bank said legal and advisory costs related to the takeover battle reduced its earnings per share by 7 cents.

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Sales, meanwhile, rose slightly to $356.1 million for the quarter, up from $354.8 million a year earlier.

R. Neal Black, Bank's president and CEO, said strong sales leading up to the holidays offset the impact of snow storms and cold on sales in January.

For the full 2013 fiscal year, Bank earned $63.3 million, down from $79.7 million the year before. Earnings per share slid to $2.24 from $2.86.

Full year sales also slipped to $1.03 billion from $1.05 billion.

Black said the new year is off the a good start.

"We have generated double-digit total sales gains in fiscal February and the first four weeks of fiscal March of 2014, reflecting positive consumer response to our promotions as well as ongoing strength in the non-promotional portion of our business," he said.

The merger with Men's Wearhouse is expected to close later this year, creating a retail powerhouse with more than 1,700 stores.


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