Joe's Jeans retail store sales rise 23% in Q1 FY'13

Highlights were:
- Consolidated first quarter net sales increased 13% to $29.4 million;
- Wholesale net sales increased 11%;
- Retail store net sales increased 23%; and
- Operating income increased 30%, excluding the one-time charge for contingent consideration buy-out expense.

For the first quarter of fiscal 2013, overall net sales were $29.4 million compared to $26.0 million from the prior year comparative period, or a 13% increase. Our overall gross profit for the quarter increased to $14.3 million from $13.1 million in the prior year comparative period, or a 9% increase.

Our overall gross margin in the first quarter of fiscal 2013 was 49% compared to 50% in the prior year period. Operating expense in the first quarter of fiscal 2013 was $20.7 million compared to $11.3 million in the prior year period.

Excluding the impact of a one-time charge of $8.7 million that represents the net present value of the contingent consideration buy-out expense, operating expenses would have been $12.0 million.

Also excluding this charge, our operating income would have increased to $2.3 million for the quarter and our fully diluted earnings per share would have been $0.03 per share instead of a loss of $0.10 per share for the first quarter of fiscal 2013.

Marc Crossman, President and Chief Executive Officer, commented, “Our first quarter of fiscal 2013 continued another strong quarter of sales and income increases.” Crossman continued, “With that said, both our wholesale and retail segments posted healthy double digit growth for the quarter which translated into strong consolidated revenue and earnings growth for us, excluding the one-time charge.”

Joe's Jeans