Jos. A. Bank Clothiers Inc. reported a strong finish yesterday to fiscal 1998, with earnings soaring 69 percent in the fourth quarter.

Income from continuing operations rose to $2.2 million, or 32 cents per share, from $1.3 million, or 19 cents per share, in the fourth quarter of fiscal 1997, the Hampstead-based men's apparel retailer said.

Profit in the quarter, which ended Jan. 30, exceeded analysts' expectations of 27 cents per share.

"Jos. A. Bank is really hitting its stride," said Ken Gassman, a retail analyst with Davenport & Co. who follows the company. "It seems to me that what they've got is more focused merchandising. They've found a niche in an upscale area that's very successful with little competition."

For the year, the company's income from continuing operations rose to $5.9 million, from $2.5 million the previous year.

That included a one-time, $1.4 million tax benefit recorded in the third quarter of 1998.

Bank's total sales in the fourth quarter increased 9.1 percent, to $57.2 million, compared with $52.5 million in the fourth quarter of 1997. For the year, total sales rose 8.7 percent to $187.2 million, compared with $172.2 million in fiscal 1997.

Sales were flat during the fourth quarter at comparable stores -- those open at least a year and whose sales are considered the best gauge of a retailer's performance.

The chain maintained flat sales -- rather than seeing sales decline -- at comparable stores despite opening 17 new stores in existing markets, said Timothy F. Finley, chairman and chief executive officer.

"We have completed a fantastic year which exceeded our expectations," Finley said.

The company continued to improve its gross margins and leverage general and administrative expenses, in part by keeping inventory levels balanced and ending the year with low levels of clearance merchandise, said David E. Ullman, executive vice president and chief financial officer.

The retailer has been better able to manage its inventory since selling its manufacturing plants last year, as outsourcing offers more flexibility, Gassman said.

The chain has added 32 stores in the past 2 1/2 years, bringing its total to 104 stores.

Bank plans to open 12 to 15 more stores in each of the next two years.

Finley also said yesterday that the chain plans to introduce a second catalog, focusing on branded footwear and some branded apparel, by April.

The retailer launched a Web site last year. Last week, Bank became a shopping partner of America Online Inc.

Bank has gotten off to a good start in fiscal 1999, Finley said. Comparable store sales rose about 3 percent in February, he said.

Pub Date: 3/03/99