Good Earnings from Joe Bank

Jos. A. Bank Clothiers (JOSB) just released a very good Q2 earnings report this morning. The company earned 59 cents a share which was six cents more than Wall Street was expecting. Let’s hope the stock gets a nice bump today.
The details look very solid. Sales rose 12.3% and same-store sales rose 9.2%. A year ago, the company earned 45 cents a share. I’m especially glad to see that gross margins improved to 62.8% from 61.5%.
Right now, Wall Street pegs JOSB to earn $3 for the entire year, bear in mind that a very large part of that comes in their fourth quarter. I expect Wall Street to up its full-year estimates soon. Three months ago, JOSB beat the Street by 14 cents a share.
JOSB has posted higher year-over-year earnings for 35 of the last 36 quarters including the last 17 in a row. Even at $3 a share, the stock is going for about 12 times forward earnings which is a decent value.
Update: The stock is up 13% today. I’m now playing that Gary Glitter HEY song in my office.

Posted by on September 1st, 2010 at 8:52 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.