Home / Knowledge / News / Apparel/Garments / Joe's Jeans generates operating income of $1.5 mn in Q3
Joe's Jeans generates operating income of $1.5 mn in Q3
15
Oct '10
Joe's Jeans Inc. announced financial results for the third quarter ended August 31, 2010. Highlights were:

• Net sales increased 20% to $25.5 million over the prior year comparative period;
• Gross margin increased sequentially to 46% from 44%; and
• The Company generated operating income of $1.5 million.

For the third quarter ended August 31, 2010, overall net sales were $25.5 million compared to $21.2 million from the prior year comparative period, or a 20% increase. Our overall gross profit for the quarter increased to $11.8 million from $10.4 million from the prior year comparative period, or a 14% increase.

Our overall gross margins were 46% compared to 49% in the prior year comparative period and operating expense in the third quarter of fiscal 2010 was $10.3 million compared to $7.5 million a year ago. We generated operating income of $1.5 million compared to $2.8 million in the prior year comparative period and earnings per share of $0.01 compared to $0.03 in same period a year ago.

Wholesale
Net sales for our wholesale segment increased by 7% to $21.3 million compared to $19.9 million in the third quarter of fiscal 2009. Within our wholesale business, all three sales channels, men's, women's and international, experienced growth.

Marc Crossman, President and Chief Executive Officer, commented, "While the premium denim business remains challenging, we have been able to offset declines by utilizing our existing distribution channels as a gateway to expansion for our non-denim categories. This is evidenced by our sales mix of non-denim products increasing from 3% of sales a year ago to 16% of sales this year."

Gross margins for our wholesale segment were 45% compared to 48%. Our wholesale gross margin decreased as a result of a higher mix of sales from our new product categories which currently carry lower margins than our core denim. However, gross margins increased sequentially from 42% to 45% as a result of improving sourcing of our non-denim products.

Wholesale operating expense in the third quarter of fiscal 2010 was $3.8 million compared to $3.0 million a year ago. Our wholesale expenses increased over last year mostly due to the addition of our own customer service representatives, increased sample costs for our new product classifications, and staffing expenses for our shop in shop program in France. In the third quarter and prior year comparative period, our wholesale operating income was $5.7 million compared to $6.5 million.

Retail
Net sales from our retail segment increased 223% to $4.2 million compared to $1.3 million in the prior year comparative period. The growth in retail sales was driven by same store sales comp increases of 23.5% and revenue contribution from growing our store base from five to 14. Gross margins for our retail segment were 55% compared to 66% in the respective comparative periods.

Mr. Crossman commented, "The decrease in our gross margins is attributable to a strategic decision we made to liquidate the remnants of old collection items after the launch of our new product categories. Having sold the balance of the old collection items between June and September, our gross margin has rebounded to the 66% level."

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Courtesy: ZDHC

Textiles | On 23rd Jan 2017

Oeko-Tex joins ZDHC programme for sustainability

Oeko-Tex, an independent textile testing institute working for the...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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