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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