US: Joe's Jeans back in the black in Q4
- Q4 net profit reached $1.96m
- Sales up 33% to $33.7m
- Gross margin improved to 47% from 46%
US apparel maker Joe's Jeans has returned to profit during its fourth-quarter thanks to rising sales and improved margins.
Net profit reached US$1.96m for the three months to 30 November, compared to a loss of $268,000 the previous year.
Net sales jumped 33% to $33.7m, up from $25.4m the year before. Retail net sales were up 18% to $7m, against to $5.9m the prior year period. Growth was driven by revenues from six additional stores and a 6% same store sales increase.
Wholesale revenue surged 37% to $26.8m from $19.5m the year before, helped by gains within the men's and women's Joe's channels and sales from the Else brand. Gross margin improved to 47%, compared with 46% the year before.
"We are pleased with our results for the fourth quarter of fiscal 2012," president and CEO Marc Crossman said.
"We generated operating income across all four quarters in fiscal 2012, which resulted in an increase to our cash balance and enabled our ability to fund new store openings from cash flow from operations.
"In addition, the increases in our net sales and gross profits coupled with maintaining our operating expenses all contributed to and had a positive impact on our bottom line."
US denim brand Joe's Jeans has agreed to buy rival apparel firm Hudson Clothing Holdings for US$97.6m as it looks to increase production capabilities and drive international growth....
Denim brand Joe's Jeans has reported a 17% decline in second-quarter net profit, after increased expenses from its Else and Vintage Reserve lines weighed on margins....
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