Joe's jeans reports 8% hike in Q2 FY'13 net sales

Net sales from our retail segment in the second quarter increased 14% to $6.5 million compared to $5.7 million in the prior year comparative period. The growth in retail sales was driven by revenue contribution from eight new locations. Same stores sales, which are stores open the full 12 months and e-shop, were a negative 6% on a comparative basis.

Similar to wholesale, this same store sales decrease was due to tough comparisons at our full price stores against our successful “55 Colors” and printed denim program in the year ago period. Gross margins for our retail segment were comparable in both periods at 70% and 71%, respectively. Retail operating expense increased due to the expansion of our store base. Overall, for the second quarter of fiscal 2013, we had operating income of $132,000 compared to operating income of $570,000 a year ago for our retail segment.

Mr. Crossman commented, “We are pleased with our continued growth in retail net sales, as our retail strategy continues to evolve and mature. In particular, we are pleased to see that our strategy to target smaller footprint stores in top locations is paying off, as those stores continue to be top performers.”

JOE'S JEANS