US: Joe's Jeans swings to Q3 profit
- Q2 net income reaches $1.4m
- Gross margin increases to 46%
- Net sales up 25% to $30.3m
Apparel maker Joe's Jeans has returned to a profit during its third-quarter, helped by strong sales growth at is retail and wholesale businesses.
Net income reached US$1.4m for the three months to the end of August, compared with a net loss of $2m the year before. Operating income stood at $2.7m against a $2.6m loss last year.
Gross margin increased to 46%, up from 40% the same period in 2011 as last year's margins were hit by a $1.6m inventory write-down.
Net sales jumped 25% to $30.3m, while retail sales grew 24% to $5.5m, driven by a 7% same-store sales rise and revenue from four additional stores.
Net sales at the wholesale business rose 26% to $24.8m, with gains at the Joe's men's and international sales channels and the addition of its Else brand.
"We are pleased to report another strong quarter of sales increases with a 25% increase over the prior year period," said Marc Crossman, president and CEO.
"Both our wholesale and retail segments posted healthy increases. At 18% of sales, our retail segment continued to provide diversification to our revenue base. These positive top line results led to our operating income increasing to $2.7m for the quarter.
"Our retail sales continue to perform well above our expectations, and in particular, our full price retail stores. Our full price retail stores continued to post double-digit same-store sales gains."
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