Home / Knowledge / News / Apparel/Garments / Joe's Jeans posts 51% surge in Q2 sales
Joe's Jeans posts 51% surge in Q2 sales
Jul '10
Joe's Jeans Inc. announced financial results for the second quarter ended May 31, 2010. Highlights were:

For the second quarter ended May 31, 2010, overall net sales were $25.9 million compared to $17.2 million from the prior year comparative period, a 51% increase. Marc Crossman, President and Chief Executive Officer, commented, "Once again we are pleased to report sales increases in all of our distribution channels, namely domestic women's, domestic men's, international and retail." Net sales for our wholesale segment increased by 42% compared to the year ago period. The growth in this segment was driven by increases in our core denim business and the addition of sales from non-denim product classifications. Net sales from our retail segment increased 180% compared to the year ago period. The growth in our retail sales was driven by a 26% increase in same store sales and revenue contribution from an additional 9 stores, 7 of which opened during the quarter.

Our overall gross profit for the quarter increased to $11.5 million from $8.7 million from the prior year comparative period, or a 32% increase. Our overall gross margins decreased to 44% compared to 51% in the prior year comparative period. Our gross margin was impacted by the addition of new product categories with lower margins. Marc Crossman commented, "As we continue to grow our new product categories for the Fall of 2010 through the Spring of 2011, we expect to see a meaningful lift in gross margins as we anticipate being able to take advantage of volume thresholds with our factories."

Second quarter overall SG&A was $10.2 million compared to $6.9 million a year ago. The increase over last year is mostly attributable to additional headcount and rent costs associated with the opening of seven new retail stores during the quarter and the additional headcount, samples and facilities and distribution expenses in our wholesale division to support our overall growth and expansion of our other product lines.

In the second quarter, our wholesale operating income was up 4% to $5.8 million compared to $5.6 million in the prior year comparative period and our retail operating income was up 171% to $125,000 compared to a loss of $175,000 in the prior year comparative period. Overall, we generated operating income of $1.2 million. Marc Crossman commented, "With the build-up of our infrastructure to support new product classifications in place, we do not expect to see meaningful increases in our corporate expenses going forward." Crossman continued, "Future sequential expense increases will largely be limited to increases in commission payments that correspond to wholesale sales volume increases and additional retail expenses associated with the opening of additional stores."

Crossman summarized the quarter with the following, "Our second quarter contained several milestones for the Company, including generating a record $25.9 million of sales and openingseven new retail stores with each reaching profitability within 30 days of opening. In addition, we continue to see the positive momentum of sales of the new product lines as we head into our Fall season evidenced by a 23% increase in our wholesale backlog and solid double digit same store sales gains at Company-owned retail stores."

Joe's Jeans Inc

Must ReadView All

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Sunil Rathore
Lacoste India

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

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Igor Chapurin

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search