Joe's Jeans Q2'FY14 operating income surges 55% to $3.3mn

Retail

Net sales from our retail segment in the second quarter increased 19% to $7.8 million compared to $6.5 million in the prior year comparative period. The growth in retail sales was driven by revenue contribution of $837,000 from Hudson’s e-shop as well as growing our store base by three stores in the comparative period. In addition, our same store sales, which includes Joe’s stores open at least 12 months and our Joe’s e-shop, increased 1% during the quarter. 

Joe's Jeans Inc. announced financial results for the second quarter ended May 31, 2014. Highlights:-Second quarter net sales increased 56% to #

 

Gross margin percentages for our retail segment decreased to 69% from 70% in the year ago period and were impacted by increased promotional activity at our retail outlet stores as our competitors were more promotional. Retail operating expense increased as a result of additional expenses associated with expanding our store base compared to the prior year period and the addition of the operation of Hudson’s e-shop. Overall, for the second quarter, we had an operating income of $103,000 compared to $132,000 in the year ago period for our retail segment.

 

Corporate and Other

For the second quarter of fiscal 2014, our corporate and other expenses were $8.4 million compared to $3.7 million in the second quarter a year ago. Corporate and other expenses increased due to $4.2 million of expenses associated with Hudson’s corporate operations for the second quarter of fiscal 2014.