Home / Knowledge / News / Apparel/Garments / Joe's Jeans Q2'FY14 operating income surges 55% to $3.3mn
Joe's Jeans Q2'FY14 operating income surges 55% to $3.3mn
11
Jul '14
Joe’s Jeans Inc. announced financial results for the second quarter ended May 31, 2014. 
 
Highlights:
-Second quarter net sales increased 56% to $48.2 million;
-Wholesale net sales increased 66%;
-Retail store net sales increased 19%; and
-Operating income increased 55% to $3.3 million compared to $2.1 million in the prior year period.
 
For the second quarter ended May 31, 2014, overall net sales were $48.2 million compared to $30.9 million in the prior year comparative period, or a 56% increase. We completed our acquisition of Hudson Clothing Holdings, Inc. on September 30, 2013 and our results for the second quarter of fiscal 2014 reflect the operation of Hudson as one of our wholly-owned subsidiaries.
 
Our overall gross profit for the quarter increased to $22.6 million from $13.5 million in the prior year comparative period, or a 67% increase. Our overall gross margin in the second quarter of fiscal 2014 was 47% compared to 44% in the second quarter of fiscal 2013. Operating expense in the second quarter of fiscal 2014 was $19.3 million compared to $11.4 million a year ago. 
 
Our operating income was $3.3 million compared to $2.1 million in the prior year comparative period. We had net income of $2.3 million compared to $1.2 million in the prior year period. As a result, our fully diluted earnings per share was $0.01 for the second quarter of fiscal 2014 compared to $0.02 in same period a year ago.
 
Marc Crossman, President and Chief Executive Officer, commented, “We have been working these past two quarters to position both companies to realize the cost savings benefits from our acquisition of Hudson. We expect to begin to see the benefit of that work in the third quarter of fiscal 2014. 
 
“We expect the savings to continue to ramp up during the fourth quarter and by year end, we expect to be running at an annualized cost savings rate in excess of $10 million per year.” Mr. Crossman concluded, “Furthermore, we expect our core results, excluding these cost savings, to pick up in the back half of the year, as we are already seeing improvement in our same store sales comps at our company owned retail stores.”
 
Wholesale
Net sales for our wholesale segment in the second quarter of fiscal 2014 increased 66% to $40.4 million compared to $24.4 million in the year ago period. Wholesale net sales for the second quarter of fiscal 2014 included $17.9 million in wholesale net sales from Hudson. Gross margin percentages for our wholesale segment were 43% for the second quarter of fiscal 2014 compared to 37% in the prior year comparable quarter. 

Must ReadView All

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Courtesy: Walmart

Apparel/Garments | On 18th Jan 2017

Walmart to create 34,000 new jobs in the US

The world’s biggest retailer and also the biggest US private sector...

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search