NEW YORK (AP) — Shares of Jos. A. Bank Clothiers Inc. dropped to their lowest point in more than two years on Monday as the men's clothing company announced its fiscal 2012 net income will be about 20 percent lower than the previous year.
The retailer's 2011 net income was $97.5 million, which implies $78 million for 2012.
Late Friday, Jos. A. Bank said that its full-year sales will be up, but will not offset increased marketing expenses and lower gross margin.
President and CEO R. Neal Black said in a statement that the Hampstead, Md.-based company's fourth-quarter sales started out slow due to Superstorm Sandy, the distractions of the presidential election and uncertainty surrounding whether the government would go over the fiscal cliff at the start of the New Year.
Black said the retailer thought business would pick up during the holiday season, but that its results were hampered by unseasonably warm weather since many of its promotional items and holiday assortment was geared toward colder temperatures.
The holiday season is a critical period for retailers, as it can make up as much as 40 percent of their annual revenue.
Jos. A. Bank anticipates opening 45 to 50 new stores in fiscal 2013. It has 602 stores in 44 states and the District of Columbia.
The stock fell $7.59, or 16.4 percent, to $38.68 morning trading. The shares declined to $37.90 earlier in the session, their lowest level since September 2010.