Unfortunately for Jos. A. Bank (NASDAQ:JOSB) and its investors, it's April all over again. A few months back, mediocre comps growth scared investors into selling off the stock, pushing it 6% lower. Yesterday, history repeated itself.
The stock fell 6.2% after nearly nonexistent same-store sales growth. Jos. A. Bank reported just a 0.4% gain in June comps; analysts had expected an increase of 1.7%.
It's important to remember here that Jos. A Bank's numbers represent just one month of disappointing comps. (Investors certainly didn't.) Prior to June, same-store sales were much stronger, increasing 7.3% and 13.5% in April and May, respectively.
But there's at least one more indication that Jos. A. Bank may be temporarily out of style. Men's Wearhouse (NYSE:MW) announced that its second-quarter earnings would come in at the high end or exceed its earlier guidance, thanks to strong retail sales. This suggests that any problems lie more with Jos. A. Bank than its overall segment.
Fools considering investing in the company may remember what happened after April's selloff. It wasn't obvious at the time, but that previous plunge presented a tremendous buying opportunity. The stock price climbed 28% higher between the April setback and yesterday's drop.
It's still too early to tell whether Jos. A. Bank will regain its fashionable form, or whether its drab days are just beginning. Its earnings next month should provide a better indication one way or the other. However, I think any expectations that the stock will enjoy another swift and healthy comeback are a bad fit with reality.
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Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.
