Jos A Bank falls out of fashion with investors
Shares are plunging after the company surprised Wall Street with a Friday evening profit warning.
Shares of the Hempstead, Md., company were tanking Monday after it stunned investors Friday with a profit warning. Net income for the fiscal year ending Feb. 2 will fall about 20%, the company said.
Shares of the 106-year-old company saw their biggest decline in more than four years, trading down nearly 18% at midday.
Wall Street, which had expected earnings to increase, wasn't too pleased with Jos A Bank's rationale for its financial woes, which included everything from unusually warm weather to Superstorm Sandy to uncertainties created by the presidential election and the fiscal cliff.
The timing of what Business Insider dubbed "The Mother Of All Friday Night News Dump Earnings Warnings" only made matters worse.
CNBC's Herb Greenberg wondered Monday why the retailer, which has more than 600 locations, waited until 8:05 p.m. Friday night to disclose problems that it knew about since November.
"From an excuses standpoint, this takes the cake," he said.
Worries about Jos A Bank were pushing shares down of its rivals Men's Warehouse (MW) and Casual Male Retail (DXLG). Investors have long wondered how Jos A Bank could afford such generous deals as giving consumers seven free suits in exchange for buying one at regular price. That question may not be answered anytime soon.
A phone call to CFO David Ullman wasn't immediately returned.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr
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[BRIEFING.COM] The stock market ended the midweek session on a mixed note. Blue chip listings bolstered the Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%), while the Russell 2000 (-0.4%) and Nasdaq Composite (-0.02%) underperformed.
Equity indices began the day in the red, but wasted no time regaining their flat lines. Small-cap stocks were not as fortunate as the Russell 2000 spent the day in the red.
Upon returning into positive territory, the key indices were ... More
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