After extending bid to buy the struggling retailer in October, and then being given an offer last month Jos. A Bank last numbers show the company is doing well without an acquisition The Street reported Thursday.
"The customer is responding well to the changes we are making in the promotional side of our business and our non-promotional business continues to grow strongly. This was evident in our improving sales trend, both in stores and online, as well as in our marketing efficiency," Neal Black, Jos. A. Bank CEO told The Street. "The pivotal month of December is still ahead of us."
Jos. A. Bank sales have gone up 6.3 - percent to $247.5 compared to last year's third fiscal quarter.
The company also saw success with direct marketing sales which sky-rocketed $23.5 - percent. Sales from the retailer's website also went up $2.4 - percent. This is a result of the organization's strategy to offer customers more direct discounts.
Jos. A. Bank's shares decreased 0.4 - percent to $56.66 before trading began Thursday. The company's stock has progressed however 32.6 percent overall.
Jos A. Bank introduced the idea to merge with its competitor in September, three months after Men's Wearhouse let its founder and chairman George Zimmer go following a power struggle over privatizing the company. The retailer also offered to buy shares at $48.
Men's Wearhouse rejected Jos. A. Bank's initial $2.3 billion bid to take over the struggling retailer in October because it had twice as many stores as its competitor and experienced 13 consecutive quarters of growth in same store sales through its main locations, while Jos A. Bank's revenue decreased three consecutive quarters.
Men's Wearhouse also chose not to proceed with the offer because they felt it was not realistic. The company therefore attempted to revive itself by increasing sales a maximum $550 million in three years. The Men's Wearhouse board also claimed the bid underestimated the company's worth and did not take the shareholders best interests into account The New York Times reported.
Men's Wearhouse then put a bid of its own on the table last month to buy Jos. A Bank for $1.5 billion, which the retailer declined.
