JoS. A. Bank

JoS. A. Bank (JOSB - Snapshot Report) recently reported fiscal second quarter results which surprised on the Zacks Consensus by 8.8%. This Zacks #2 Rank (buy) is expected to grow 2011 earnings by 11.3%.

JoS. A. Bank sells men's suits, tuxedos, casual clothing, footwear and accessories through 529 stores in 42 states and the District of Columbia and through its web site, www.josbank.com. The company has a 100% money back guarantee on its products.

Sales Rise 22.4% in the Second Quarter

On Aug 31, Jos. A. Bank reported its fiscal second quarter results and saw sales jump to $230.7 million from $188.4 million in last year's quarter. Same store sales rose 14.7% with Direct Marketing sales climbing 27.8%.

The good news continued into August, with August same store sales up "slightly" compared to the same period last year, even with the impacts of Hurricane Irene.

Earnings per share were 74 cents, which beat the Zacks Consensus by 8 cents per share. The company made just 59 cents in the year ago quarter.

Zacks Consensus Estimates Rise

The 2011 Zacks Consensus Estimate jumped to $3.43 from $3.40 in the last 30 days. This is earnings growth of 11.3%.

The analysts have not yet revised their estimates following the second quarter report but given the earnings surprise, I am looking for the 2011 estimate to rise further.

Still a Value Stock

Shares have been rocky during the summer with sharp sell offs followed by rallies.

But JoS. A. Bank is still a value stock.

The company has a forward P/E of 14.9, which just sneaks in under the 15x cut-off I use for value.

It also has a price-to-book of 2.7, under the P/B ratio of 3.0 that is considered a value indicator.

JoS. A. Bank has been navigating the tough consumer environment and is still managing to achieve double digit earnings growth.

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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her at twitter.com/traceyryniec.

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