Net income fell to $13.3 million in the three months that ended Oct. 27, an 11.2 percent drop compared with net income of $15 million in the year-earlier period, the Hampstead-based company said Wednesday.
Earnings fell despite an 11 percent increase in total sales and a nearly 5 percent gain in same-store sales, the company said. Total sales rose to $232.9 million from $209.6 million in the third quarter of 2011. Sales at stores open at least a year were up 4.8 percent and direct marketing sales rose 25.8 percent.
But operating income margin was squeezed by the additional markdowns and promotions that drove those sales, said Jos. Bank CEO R. Neal Black in a statement.
"Also, Hurricane Sandy, which hit along the East Coast where the majority of our largest volume regions are located, negatively impacted third quarter sales, particularly when we ran a big promotion right at the end of the quarter," Black said.
He said the effects of the hurricane and the distractions of the national election have hurt business in November, the start of the fourth quarter, when same-store sales have been down.
"With the critical month of December still ahead of us, and continued pressure on margins, we remain cautious for the outcome of the fourth quarter," Black said in the statement.