Hampstead-based retailer Jos. A. Bank announced today it plans to go into the tuxedo rental business with a test launch in about 5 percent of its stores this month.

By the end of spring — just in time for high school proms and the start of wedding season — the company plans to offer tuxedo rental in half of its 474 stores.

The additional revenue could be a boon for a company that has grown impressively over the last five years. In that time period the men’s clothier has added nearly $400 million in sales and approximately 2,100 jobs. Last year, it ranked No. 14 on Forbes Magazine’s list of America’s top 200 small companies.

Jos. A. Bank has partnered with a national distributor that will own the inventory and deliver the orders to stores. That reduces the required investment and risk associated with starting up a new operation, CFO David E. Ullman said in a statement.

Ullman said he expects the sales volume will add to the stores’ operating margins but noted the gross profit rate will be lower than if the company had invested in its own merchandise. But, he said, the tuxedo rental business has the potential to “generate significantly higher gross margins if we choose to invest in our own infrastructure in the future.”

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Coming in at No. 14, Hampstead-based Jos. A. Bank has made Forbes Magazine’s list of America’s top 200 small companies. The ranking is the best its earned and is the fifth consecutive year in a row Jos. A. Bank has been on the Forbes list.

The clothier ranked 44th in 2006, 27th in 2006, 54th in 2007 and 47th in 2008.

Forbes looked at profitability and sales growth (among other stats) to determine its rankings. Jos. A. Bank posted $747 million in sales over the last 12 months with $64 million in profit.

In a press release dated Tuesday (the list came out last month), President and CEO R. Neal Black said he was proud to be one of the select companies to make the list five years in a row.

“Our strategy to consistently grow the Company in a controlled manner has produced a strong sales, earnings and cash flow performance over the past five years,” he said. “During this same five year period, we have added nearly $400 million in sales and approximately 2,100 jobs, while growing our brand throughout the United States.”

Unfortunately, Forbes doesn’t let you search the list by state anymore so it’s not as easy to determine how many Maryland companies made the list this year. But after a quick scan I can tell you, Owings Mills-based Medifast also came in the top-25 on the list at No. 16. (Medifast, which ranked 85th last year, makes weight-management products.) Hunt Valley-based Tessco Technologies, a wireless communications company, ranked 177th this year, and this is the third-straight year the company has made the list.

Under Armour, which ranked 28th last year, didn’t make it this time around. Our friendly slots neighbors, Dover Downs Gaming & Entertainment, came in at No. 179 this year (the third straight year the company has made the list).

If you find any more Maryland companies that made the list, let us know.

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Good idea or bad idea? Jos. A Bank announced a program Monday that will refund the price of a suit if the purchaser loses his job — and allows him to keep the suit.

“At Jos. A. Bank we understand the uncertainty everyone is facing,” said CEO R. Neal Black, in a statement. “We want to help the customer look good at work, and if he loses his job, to be dressed appropriately as he meets with his next employer. It’s like giving all of our customers a bit of unemployment insurance.”

There are some catches though: the full rebate applies to suits purchased during the company’s $199 sale from March 16 through April 9 and only to customers who lose their jobs during those weeks. If the customer is laid off April 16 through July 1, the company will refund up to $199 or the cost of the suit if it is less, and the customer can still keep the purchase. For more details, visit the Web site.

The 651,000 jobs lost in February wasn’t quite as bad as January’s loss — 655,000 jobs — but if the trend continues, a total of 1.5 million to nearly 2 million more jobs could be lost by July 1. If even a small percentage of those jobs are people who ran out to buy a Jos. A. Bank suit, the Hampstead-based clothier could have a lot of refunds on its hands in the coming months.

However, if a greater number of people run out to buy suits and don’t get laid off, then the promotion is a win for the company.

Either way, the idea could drive traffic to the stores but is this a gamble you would take as a business owner?

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