At 8:05 PM ET Friday, discount suit-seller Jos. A. Bank dropped a bombshell.
“[N]et income for fiscal year 2012 is expected to be approximately 20% lower than net income for fiscal year 2011,” they wrote.
According to Yahoo Finance, analysts were expecting earnings to climb around 8 percent from last year’s earnings of $3.49 per share.
Among other things, management blamed Hurricane Sandy, the election, the fiscal cliff, and warm weather.
Jos. A Bank’s sales strategy centers around marking its suits up and then offering abnormally large discounts through outrageous promotions.
However, this model may have revealed its first cracks.
“…our customers (specifically at our stores) didn’t respond as well to our promotional offers as they had in the past,” they wrote.