Joe’s Jeans Inc. announced financial results for the third quarter ended August 31, 2013.
- Joe’s wholesale net sales increased 2%;
- Retail store net sales increased 14%; and
- Consolidated third quarter net sales decreased 3% to $29.4 million.
For the third quarter of fiscal 2013, overall net sales were $29.4 million compared to $30.3 million from the prior year comparative period, or a 3% decrease, with the decline entirely attributable to sales from our else brand. Sales of our Joe’s brand grew in the domestic and international wholesale distribution channel and in our Company owned retail stores.
Our overall gross profit for the quarter decreased to $12.8 million from $13.8 million in the prior year comparative period, or a 7% decrease. Our overall gross margin in the third quarter of fiscal 2013 was 44% compared to 46% in the prior year period. Operating expense in the third quarter of fiscal 2013 was $13.1 million compared to $11.1 million in the prior year period.
Excluding the impact of professional fees and other transaction expenses of approximately $1.3 million in connection with the acquisition of Hudson Clothing Holdings, Inc. (“Hudson”) that was completed on September 30, 2013, operating expenses would have been $11.9 million.
Our operating loss was $295,000 for the third quarter of fiscal 2013. Excluding the $1.3 million charge related to the Hudson acquisition, our operating income would have been $970,000 for the quarter and our fully diluted earnings per share would have been $0.01 per share instead of $0.00 per share for the third quarter of fiscal 2013.
Marc Crossman, President and Chief Executive Officer, commented, “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 30th.
"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.” Crossman continued, “If we excluded the Hudson transaction expenses incurred during the quarter, we would have generated positive operating income for the quarter even with the expenses associated with our eight additional retail stores.”
Click here to read full results