Solid Q3 for Jos. A. Bank

NEW YORK – Jos. A. Bank Clothiers confounded the skeptics once again in its third quarter.

The Hampstead, Md.-based men’s specialty chain managed increases in profits and gross margin and, though more modest than its previous double-digit increases, same-store sales.

During the three months ended Oct. 28, net income picked up 18.4% to $5.5 million, or 30 cents a diluted share, from $4.7 million, or 26 cents, a year earlier. On average, analysts had expected EPS of 29 cents.

Sales were up 13.1% to $105.6 million from $119.5 million. Although comparable-store sales were up 2.3%, modest by previous JAB standards, non-store sales, from the Internet and its catalogues, grew 21.4%.

Gross margin improved to 60.6% of sales from 60% during the 2005 period.

Year-to-date net income grew 9.6% to $18.3 million, or $1.00 a share, from $16.7 million, or 93 cents. Sales were 17.1% higher, at $352.3 million, while comps were up 5.6%.

At $202.6 million, inventories were running 14.7% higher than at the start of the fiscal year in January.

Jos. A. Bank operates 371 men’s specialty stores in 42 states.