Jos. A Bank Has Good Year, No Thanks To DM

Jos. A Bank Clothiers Inc. pulled in $695.9 million in sales during fiscal 2008, up from $604 million in 2007. The company’s net income rose from $50.2 million a year ago to $58.4 million. The fiscal year ended Jan. 31.

At $335.5 million, the company’s operating expenses were 48.2% of its total sales, compared with $295.9 million, or 49% of its sales, in 2007.

But much of this good fortune was the result of strong retail operations. Same-store sales increased 8.9% during 2008, while direct marketing sales slipped by 0.2%. The company did not disclose why its DM sales were off.

Jos. A. Bank operates a Web site and issues a catalog.

The Analyst’s Take: Jos. A. Bank did a hell of a job keeping all of its costs down and margins consistent. The percentage its cost of goods made up of its total sales was only marginally higher in 2008 than in 2007, and its combined sales and marketing and general and administrative expenses were slightly lower. Best of all, its net income was 8.4% of its total sales, up slightly from the 8.3% seen in 2007. Not bad, for a recessionary year. Not bad at all. It’ll be interesting to see how its full fiscal filings reflect its DM operations.