In a bittersweet, post-market-close release Friday evening, Jos. A. Bank announced its quarterly results, most likely for the last time, as Men’s Wearhouse’s is expected to acquire the company in the next few weeks.
The company reported adjusted net income of $9 million for the quarter ending May 3, with earnings per diluted share of 32 cents, representing a 10 percent year-over-year increase.
The Wearhouse released its own quarterly results Thursday evening, announcing a successful quarter, in which net sales increased by 2.3 percent.
In a conference call Friday morning about those quarterly results, Men’s Wearhouse dropped a little knowledge about the acquisition:
- The company incurred one-time charges of about $26.5 million (35 cents per share) during the quarter, which it primarily attributed to costs associated with the Joe Bank acquisition.
- They don’t know much about Joe… yet. The Wearhouse said that it has contracted with AlixPartners to research the Jos. A. Bank business, but regulations prohibit the acquirer from knowing that information until after the deal closes. Men’s Wearhouse plans to see the results as soon as possible.
- The two companies have an estimated customer overlap of about 20 percent, said Men’s Wearhouse CEO Doug Ewert, as Men’s Wearhouse is a little more modern than the Maryland brand. “That portion of our business that’s more traditional and classic is a pretty small portion,” said Ewert.
- The sales must go on. Ewert says that Men’s Wearhouse has no intention to cut back on promotions when Jos. A. Bank becomes a part of its business. “Both brands target different customers but we’re operating in a very promotional environment and I don’t see that changing,” he said.