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JoS. A. Bank commits to improving sales trends following Q2 earnings update

HAMPSTEAD, Md. — JoS. A. Bank customers did not respond as favorably to some of the company's marketing campaigns as they did in the prior year leading to a total sales decline of approximately 11% in the second quarter ended Aug. 3.

The company expects earnings for the quarter to be approximately $0.49 to $0.53 per diluted share, compared with $0.83 per diluted share in the second quarter of 2012.

"While our total sales declined in the second quarter of fiscal 2013, we achieved stability in our gross profit margin rate," said president and CEO R. Neal Black. "Specifically, our gross profit margin rate increased in both the fiscal months of June and July and the overall rate for the second quarter is expected to increase slightly from last year."

Day-to-day sales on the non-promotional portion of JoS. A. Bank's business in stores increased during the quarter.

"As we implemented new marketing strategies, we were conservative with our marketing expenditures which enabled us to improve our marketing efficiency during the quarter," added Black.

The company is focusing on improving its sales trend and further improving its gross profit margin rate and marketing efficiency for the remainder of fiscal year 2013 —the overall goal being to match prior-year levels.

"We will continue to modify and implement new marketing events and the related media placement to maintain efficiency and to drive sales. We will begin to annualize our declining sales and gross margin trends during the third quarter and for all of the fourth quarter, which means our opportunity for improvement is significant during those periods," said Black.

JoS. A. Bank Clothiers, Inc., established in 1905, is a leading designer, manufacturer and retailer of men's classically styled tailored and casual clothing, sportswear, footwear and accessories. The company sells its full product line through 612 stores in 44 states and the District of Columbia, a nationwide catalog and an e-commerce website. The company is headquartered in Hampstead, Md.

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