LEADERS

ONLINE

Baltimore
311 wildrick.tif

Robert N. Wildrick

A Strong
Quality/Value Relationship

Editors’ Note

A director of Jos. A. Bank since 1994 and CEO of the company since 1999, Bob Wildrick began his retail career more than 30 years ago with Macy’s. Since then, he has worked for Federated Department Stores in various merchandising and operational capacities; he was the Corporate Executive Vice President of Merchandise and Sales Promotion for Belk Stores; and he served as Chairman, President, and CEO of Venture Stores. He holds both BA and MA degrees from Southern Illinois University.

Company Brief

Headquartered in metropolitan Baltimore, Jos. A. Bank Clothiers, Inc., is a manufacturer and retailer of self-branded tailored clothing, sportswear, furnishings, and footwear for the professional man. Distributed via catalogs, the Internet (www.josbank.com), and over 400 stores it owns or franchises in 42 U.S. states and Washington, DC, the corporation is traded on Nasdaq under the ticker symbol JOSB.

How did market conditions affect Jos. A. Bank’s business in 2007, and what is your outlook for 2008?

In the middle of the third quarter, retail generally began to soften up as the sub-prime mortgage market deteriorated, people began to get more nervous about the economy, and oil prices increased. I don’t see retail being extremely robust for the next couple of quarters, until there is more certainty in the economy. Fortunately, Jos. A. Bank continued to show solid gains in the third quarter, with sales up approximately 10 percent and earnings per share up approximately 27 percent. We have such a strong quality/value relationship – meaning we give consumers good quality for reasonable prices – that we think current market conditions give us an opportunity to gain market share. We plan on being more aggressive than ever before, opening new stores and going after new customers. During tough times, a company like ours, which offers better value, should have a chance to flourish.

How have you been able to offer such reasonable prices for such high-quality products?

We’re primarily a vertical manufacturer. We have effectively cut out the middlemen and we share those savings with our consumers.

Jos. A. Bank has some relatively strict quality controls in place at its manufacturing facility and at its stores. Why has this been such a major focus for the brand, and for you personally?

Companies that don’t constantly improve their quality will eventually fail, and we have no intention of failing. We constantly put more effort on our already great quality, and we have a zero-tolerance policy. Now, of course, because we’re human, we make mistakes from time to time. But when we do, we look to learn from those mistakes. Our goal is to give the best quality on the market for the price.

Do you anticipate broadening your product offering in the future?

There are many possible extensions of our product categories. However, we just announced that we’re planning to open 600 new stores in the next few years – about 50 to 60 a year. So we have a lot on our plate, but there’s no doubt we’ll have the opportunity to expand upon our brand name.

Likewise, are there opportunities to open stores outside of the U.S.?

It’s on the back burner, but we’re beginning cursory examinations of other markets. The Chinese market is huge, as are several other markets. But at this time, our major focus is on doing what we do best – making great products and opening stores in the U.S.

In adding 50 to 60 stores per year, one would imagine it would be challenging to manage the change associated with that kind of rapid growth. How have you been able to manage that growth so effectively?

We have a very diversified portfolio: Our stores are not huge, but they’re in various locations. So we don’t need to hire 100 workers from one community; rather, we typically open a store with less than 10 people. That said, around the United States, we’ve added over 2,000 jobs with our stores, and by the time we’re done with this project, we expect to add over 4,000 jobs – we’re very proud of that. We spend a lot of time on our culture and we have a very simple personnel policy. Don’t hire anybody you wouldn’t be proud to bring home for dinner. We are very people-oriented, and we believe that our best asset is our people. So we’re very concerned about giving people the opportunity to grow and to excel. Basically, we build the ballpark and give them the opportunity to run their game, as long as they live with our five values: urgency, quality, integrity, commitment, and winning attitude.

What about corporate-level recruiting? Has the Baltimore area provided an adequate talent pool to fill positions at Jos. A. Bank’s headquarters?

Yes. Maryland is one of the best-kept secrets in America. It is one of the few places on the East Coast that offers a high standard of living for a very reasonable price. The educational system in Maryland is fabulous, there’s a highly educated workforce, and the topography is beautiful – both urban and rural. There’s little you can’t do in Maryland. As a company, we have found the state government to be supportive of the growth of the company. In Carroll County, where our headquarters and distribution centers are located, the local government has also been very supportive. Maryland is an ideal place to have an operation.

Do you think more and more people are catching on to that “best-kept secret,” as you called it?

More so than in the past. Johns Hopkins is one of the leading teaching and research hospitals in the world, and it’s located in Maryland; Legg Mason is one of the top investment firms in the United States, and it’s located here – I could go on. Maryland’s time has come; it will continue to grow and to be a very vibrant area. It’s a well-managed state and the local governments do a very good job.

Jos. A. Bank is on strong footing. Do you ever think about slowing down?

I love this business, but even more, I love the affiliation with our associates and customers.