Jos. A. Bank Profit Rises 2.3%

Jos. A. Bank Clothiers Inc.'s (JOSB) fiscal third-quarter profit grew 2.3% as the men's clothing retailer posted stronger direct marketing sales, though same-store sales were down slightly.

For the start of the fourth quarter, Chief Executive R. Neal Black said total sales, same-store sales and direct sales all increased during November, leading into the critical December sales time.

The company has been locked in a merger squabble with rival Men's Wearhouse Inc. (MW), which last week unveiled a surprise offer to buy Jos. A. Bank for about $1.5 billion, turning the tables on its previous suitor. Jos. A. Bank initiated the merger efforts with an October bid of $2.3 billion for its larger competitor, but Men's Wearhouse rebuffed the offer as too low.

Jos. A. Bank has appeared eager for a deal, as have investors of both companies, which have bid up the firms' shares. Jos. A. Bank Chairman Robert Wildrick said in an interview when its bid for Men's Wearhouse became public that his company would itself be receptive to a bid, and when the Jos. A. Bank dropped its offer last month it said it may consider another proposal for Men's Wearhouse in the future.

For the quarter ended Nov. 2, Jos. A. Bank reported a profit of $13.6 million, or 49 cents a share, versus $13.3 million, or 47 cents a share, in the prior-year period. Excluding legal and professional costs stemming from the company's acquisition proposal, earnings were 51 cents in the latest period. The retailer last month said it expected adjusted earnings of 49 cents to 51 cents a share.

Sales rose 6.3% to $247.5 million, compared with the company's estimate of mid-single-digit growth. Analysts polled by Thomson Reuters were expecting $245 million.

Same-store sales edged down 0.1%, while the company had predicted roughly flat growth. Direct marketing sales jumped 24% and combined same-store and Internet sales for the period rose 2.4%.

Shares closed Wednesday at $56.89 and were inactive premarket. The stock is up 34% so far this year, surging since it first offered to buy Men's Wearhouse.

Write to Ben Fox Rubin at [e-mail]

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