Jos. A. Bank Clothiers Inc. (JOSB) Wednesday posted its best fourth-quarter and annual financial results in its more than 100-year history as the suit and casual-wear retailer rides out the recession with help from direct connections with suppliers and a promotional, but profitable, selling approach.

The company had been working for almost a decade to have "really terrific quality products at reasonable prices," and when the recession hit it became more promotional but didn't compromise on quality, Chief Executive R. Neal Black said in an interview with Dow Jones Newswires. "Customers want more right now and we're delivering."

Jos. A. Bank caters to white-collar employees who are struggling mightily because of the economy's pullback, and its category - higher-end men's apparel - is stagnant, at best. However, the company has a leg up on department stores through its direct sourcing arrangement with vendors and, while promotional, is more price competitive than other retailers that specialize in men's suits.

"Through the direct production system we use, we don't have middlemen," and that reduces costs, Black said.

Jos. A. Bank also benchmarks to other retailers and makes sure its apparel is less expensive, and prioritizes keeping inventory levels on a par with demand, Black said.

The company is also successfully taking share from rivals to grow its top and bottom lines.

Black became chief executive in December, after being part of a new management team that came in at the beginning of 2000.

Jos. A. Bank has 461 stores across the U.S., mainly in high-end, specialty retail centers, and had been on a pace of opening about 50 a year. The number was cut to 40 in 2008 and probably just 10 to 15 locations will be added this year, Black said.

Even though landlords are giving concessions, "there is virtually no new building going on, so we have to look at secondary space," which can be less appealing, Black said. "We're not going to open stores that don't meet our financial criteria."

Longer term, Black does see Jos. A. Bank having 600 stores in the U.S., but not by 2012, as the company originally projected.

There are no plans for overseas expansion right now, but "we're always looking," Black said. "It takes the right partners."

Jos. A. Bank is "an attractive retail concept with low fashion risk, a tremendous track record of success, an experienced management team, a pristine balance sheet and a cheap [stock] valuation," said Scott Krasik, retail analyst at CL King & Associates, who rates shares a strong buy and has a price target of $39.

The company posted fourth-quarter results that included a 19% jump in revenue to $248.5 million on higher same-store sales. Analysts expected to see revenue come in at $227 million.

Investors responded to the results. Shares rose 20%, or $5.87, to $34.91 in regular trading. They have pulled back a bit, by 1.4% to $34.43 post-market. The stock has more than doubled from the multi-year closing low of $15.78 in mid-November.

The results posted Wednesday show Jos. A. Bank had its best quarter during the Christmas holiday season, and are a far cry from those of competitors that include Brooks Brothers, Men's Warehouse Inc. (MW) and department stores like Nordstrom Inc. (JWN) and Macy's Inc. (M).

Gross profit margin was essentially unchanged, 61.9% at the end of fiscal 2008, compared with 62.7% the year before. The steadiness is unusual in a retail group whose margins have been significantly contracting because of broad discounting to woo recession-hit consumers.

Sales have been helped by some pretty unique promotions: Last month, the retailer offered to refund up to $199 of a suit's price and allow customers to keep it if they are laid off through early summer.

"It's like giving all of our customers a bit of unemployment insurance" Black said in a statement at the time.

-By Karen Talley, Dow Jones Newswires; 201-938-5106; karen.talley@dowjones.com