Joe's Jeans President pleased with Q3 performance

16 Oct '09

2 min read

Joe's Jeans Inc. announced financial results for the third quarter ended August 31, 2009.

Highlights were:

• Third quarter net sales increased 16% to $21.2 million

• Gross margins remained steady at 49%

• Operating income increased 22% to $2.8 million

• Net income was $1.9 million with earnings per share of $0.03

For the third quarter, overall net sales were $21.2 million compared to overall net sales of $18.2 million from the prior year comparative period, a 16% increase. Marc Crossman, President and Chief Executive Officer, commented, "We are pleased with our performance for the quarter with essentially all of our distribution channels, namely domestic women's, domestic men's, licensing, and retail, experiencing sales increases."

Gross profit for the third quarter of fiscal 2009 was $10.4 million compared to $9.0 million, a 16% increase. For the third quarter of fiscal 2009, gross margins were consistent at 49%. SG&A expenses during the third quarter of fiscal 2009 were $7.4 million compared to $6.5 million in the third quarter of fiscal 2008, a 13% increase. Mr. Crossman continued, "We continue to manage effectively our expense structure while launching new product categories, rolling out our company owned retail stores, and investing in advertising and promoting the brand for long-term, sustainable growth. The increases in SG&A were largely limited to expenses associated with the retail stores we opened during the fourth quarter of fiscal 2008."

Mr. Crossman concluded, "These results translated into net income for the third quarter of fiscal 2009 of $1.9 million and earnings per share of $0.03. We had what we believe to be a very productive quarter which we will continue to build upon in the fourth quarter of 2009 and into 2010."

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