Jos. A. Bank continued the positive trend of increases in adjusted earnings that it saw in the second half of 2013. Comparable brand sales increased by double digits in the first two months of the first quarter, and despite slowing down after Easter, still resulted in an 8.4% increase.
The company reported adjusted earnings per diluted share of $.32 for the quarter, representing a 10.3% increase compared to adjusted earnings per diluted share of $.29 in the first quarter of fiscal 2013. Net income was $9 million for the first quarter of fiscal 2014 compared to $8.1 million in the same period in fiscal year 2013.
But the company’s gross profit margin rate declined in May, and president and CEO R. Neal Black is exercising caution as the retailer prepares for Father's Day.
“As we begin the second quarter, we had solid sales again in fiscal May 2014 as we generated an estimated total sales gain of approximately 7.7%,” said Black. “However, our gross profit margin rate declined in May as we aggressively sold clearance goods left over from spring 2013 and our sales and marketing expenses increased. We are therefore cautious as we approach the critical Father's Day selling period as we attempt to balance strong sales with the appropriate amount of clearance markdowns and advertising expenses."