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Will JoS. A. Bank benefit from Men's Wearhouse's earnings results?

Posted Sep 10th 2009 2:20PM by Mark FightmasterMark Fightmaster RSS Feed
Filed under: Earnings reports

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Wednesday, Men's Wearhouse (NYSE: MW) posted solid earnings results but a disappointing forecast. Just a week ago, JoS. A. Bank (NASDAQ: JOSB) saw its second-quarter earnings increase 40% as well. The company earned 68 cents per share in the quarter, easily outpacing expectations for a profit of 54 cents per share. Unlike Men's Wearhouse, JoS. A. Bank did not issue a disappointing forecast -- so the stock has vaulted above prior resistance at the $44 level, which could now act as support.

Turning to a monthly chart for JoS. A. Bank, the stock is facing a crucial point -- as it is nearing its 2004 high in the $48 region. If the stock can topple this region, we could see it challenge the all-time highs set in September 2008. Considering the fact that the company's sales grew 10% in the latest quarter, I feel that a new all-time high may be a short jump away.


Fundamentally, JoS. A. Bank is a powerhouse. The company offers excellent products at a great (sometimes insane if you can catch one of their many sales) price. What's more, there is always some sort of special offer waiting for the retailer's customers in their email inboxes. JoS. A. Bank certainly appears to have found a way to harness the power of Internet marketing, which is an excellent counterpart to the company's retail outlets. With the shopper looking for better deals, JoS. A. Bank is well-positioned to take advantage of what I believe will be a period of very tight purse strings. Many men know that JoS. A. Bank provides great products at a great price, and I feel that this will only help the company. Can the fundamental potential help JoS. A. Bank clear the perceived technical hurdles? With the holidays looming, we may soon find out.

Tags: inthenews, JoS. A. Bank, JOSB, mens retail, Mens Wearhouse, MensWearhouse, MW, retail

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Last updated: November 22, 2009: 02:27 AM

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