• Q2 profit rose 41.2% to $751,000
  • Net sales down 5% to $24.7m
  • Overall gross margins rose to 47% from 44% 

Apparel maker Joe's Jeans Inc has posted a 41.2% jump in second quarter profit, helped by tight control over costs and higher revenues at its retail unit.

Net income rose to $751,000 in the three months to 31 May, compared with $532,000 in the same period last year.

Overall net sales fell 5% to $24.7m from $25.9m. Wholesale revenues fell 11.8% to $20.2m, with growth in the men's channel offset by a fall in women's and international sales.

"We continue to believe our fall and holiday 2011 lines, with innovative fabric and fashion forward details, will resonate well with our customers and bring about a shift in our women's domestic department store performance," noted president and CEO Marc Crossman.

Gross margins for the wholesale segment edged up from 42% to 43%, while reduced sample and distribution costs helped bring down operating expenses.

Retail sales, meanwhile, jumped 52% to $4.5m as the company grew from 13 to 20 stores.