Why Jos. A. Bank's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of suit slinger Jos. A. Bank Clothiers (NAS: JOSB) were looking sharp today as they rose as much as 19% in intraday trading after the company reported strong second-quarter results.
So what: Earnings season is in the late innings, but that didn't stop Jos. A. Bank from hitting a home run for investors. For the quarter ending in July, the company delivered earnings per share of $0.83, which was up 12% from last year and was also better than the $0.73 that Wall Street had expected. On the top line, sales gained 13%, clocking in at $260 million versus the expected $251 million. A 6.1% jump in comparable-store sales helped fuel the sales growth.
Now what: Is management confident about the future? You bet. In today's earnings release, the company disclosed that it's upped its assessment of the chain's big-picture growth potential. It now sees 800 total stores -- 700 full-line stores along with 100 factory stores -- as an attainable goal. This is a significant boost from its previous view that it'd max out at 650 and 675 total stores.
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The article Why Jos. A. Bank's Shares Popped originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.