JoS A. Bank Lets Out Store-Growth Plans

HAMPSTEAD, MD—Pushed by two studies that support dramatic expansion, JoS A. Bank Clothier Inc. delivered spiffy financial numbers for Fiscal 2006 during a conference call yesterday in which CEO Robert Wildrick trumpeted plans to become “a billion dollar company” and real-estate chief Robert Hensley detailed another busy season of brick-and-mortar openings. The separate studies each concluded that JoS A. Bank could absorb 600 stores nationally, well above the 500-unit target currently established by management.

“The good news is, … there appears to be significant room for growth after 500 stores,” says Wildrick, whose Nasdaq-listed company (JOSB) opened seven new locations in the first quarter after 52 were christened in FY 2006. Currently operating 382 stores, the clothier would be well into the 400 range should this year’s quota of 50 new units be met.

To facilitate that, $34 million has been reserved for capital expenditures related to openings and renovations in FY 2007, reports CFO David Ullman. Landlords will contribute another $12 million to $14 million, he adds.