• Q3 underlying net profit US$0.5m, down from $1.4m
  • Net sales decline 3% to $29.4m
  • Retail sales up, wholesale down

Apparel business Joe’s Jeans reported a reduced third quarter profit, impacted by falling sales of its Else brand and expenses related to its acquisition of upmarket denim brand Hudson.

The company said its 3% sales decline in the three months to 31 August was “entirely attributable” to Else, with the Joe’s brand enjoying rising revenues in the company’s domestic and international wholesale channels, and in its owned retail stores.

Overall, net wholesale revenues were down 7% to $23.1m, while retail sales rose 14% to $6.3m, although same store sales declined by 6%.

“Our third quarter of fiscal 2013 marked a transition for us as we worked toward the completion of the acquisition of Hudson, which was successfully closed on September 30,” said company president and CEO Marc Crossman.

“Against this backdrop, our retail segment continued to post top-line growth, while our Joe’s women’s wholesale sales improved due to strong performance of our women’s product offerings.”