A surge in direct marketing sales led a 12.7 percent jump in net income for Hampstead-based Jos. A. Bank Clothiers Inc., which earned $23.2 million in the second quarter.
The news sent the company’s shares soaring nearly 14 percent.
The company said Wednesday that earnings increased 12.2 percent year-over-year to 83 cents per share, beating analysts’ expectations of 73 cents per share. Direct marketing sales, which include the company’s catalog and website, increased 39.3 percent in the quarter and have spiked 19.8 percent overall in the first six months of 2012.
“The third quarter has started out positively,” company President and CEO R. Neal Black said in a statement. “Both our comparable store sales and direct marketing sales are up in fiscal August compared to the same period last year.”
Total sales increased 12.9 percent to $260.3 million from $230.7 million in the second quarter of 2011.
Net income is down 1 percent to $38 million when compared to this point last year. But the second-quarter earnings, which showed a 6.1 percent increase in same-store sales over 2011, helped Jos. A. Bank to justify plans to open about 200 more stores, bringing the total to 800. The company, with 572 stores, had originally planned to have between 650 and 675 stores.
“This increase further solidifies the strength of our brand which continues to gain prominence in the U.S. market through our existing store presence, our advertising and marketing campaigns and our e-commerce platforms,” Black said in a statement.
The company’s shares gained $5.81, or nearly 14 percent, to close at $47.44 on the Nasdaq Wednesday afternoon. Over the last 52 weeks, the shares have traded as high as $56.53 and as low as $39.54.