USA: Innovo Reports Profitable Second Quarter
For the second quarter of 2001, the company's income from operations increased to $84,000 compared to a loss from operations of $656,000 for the corresponding period of the prior year. For the period, net income increased to $41,000 versus a net operating loss of $740,000 for the same period in 2000. The company's move to profitability is attributable to increased revenues, a reduction in expenses pursuant to the company's recent operational restructuring and benefits associated with the company's improved working capital position.
Net sales for the period increased to $1,968,000 compared to $1,101,000 in the second quarter of 2000, representing a 79 per cent increase. The growth is a result of increased demand for the company's promotional coolers, sales generated by the company's newly formed apparel division which features the Joe's Jeans brand of women's denim jeans and knit shirts, and other basic apparel products.
Jay Furrow, president of Innovo Group Inc, said: "The results for the quarter further validates the strength of the company's new operational structure and demonstrates the potential of the company's new business model.
"As we continue to aggressively manage expenses, open new markets and expand our existing markets, we are focused on further increasing the bottom line and shareholder value. While obtaining profitability was a goal of the company, we see it as just a stepping stone to the next level of the company's development and growth."
For the second quarter of fiscal 2001, the company's gross margin percentage increased 10.5 percentage points from 27.4 per cent in 2000 to 37.9 per cent in 2001. The increase is a result of the company's ability to obtain better pricing on imported products from the Orient and Mexico and as a result of the higher margins associated with the products sold under the company's Joe's Jeans division. The Joe's Jeans division experienced a 63 per cent gross margin for the period.
For the six months ending June 2, 2001, the company's income from operations increased to $28,000 from a loss from operations of $1,364,000 for the comparative period in 2000. Net loss for the first six months of 2001 was $62,000 versus a loss of $1,565,000 for the same period in 2000.
Net sales for the six months ended June 2, 2001 increased to $3,122,000 from $1,913,000 in the comparative period of 2000, representing an increase of 63 per cent. This increase is a result of increase demand for the company's craft and accessory products and revenues generated pursuant to the company's entry into the apparel market.
Companies: Joe’s Jeans Inc
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