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Innovo Group total net sales rise 55% to $15.2mn for Q2
11 Jul '07
2 min read
Innovo Group Inc announced financial results for the second quarter ended May 26, 2007.
Highlights
-- Joe's Jeans net sales increased by approximately 71% to $15.2 million compared to $8.8 million a year ago.
-- Gross margin improved to 48% compared to 33% a year ago.
-- The Company generated operating income of $2.1 million excluding a $1.5 million one-time, non-cash charge associated with the settlement agreement with its former international distributor.
-- Company returns to profitability with net income of $422,000 for the second quarter of fiscal 2007.
For the quarter ended May 26, 2007, total net sales increased 55% to $15.2 million compared to $9.8 million in the prior year period. The company reported overall net income of $422,000, compared to an overall net loss of $5.0 million in the corresponding period a year ago.
Marc Crossman, President and Chief Executive Officer of Innovo, stated, "Our second quarter results continue to reflect the growth of the Joe's brand and highlight the improved operational performance that we have been striving to achieve throughout 2007. By growing our sales by 71%, improving our gross margins and achieving profitability in the second quarter, we exceeded internal projections. We intend to build on this momentum as we move into the back half of 2007 and start planning for 2008."
For the second quarter ended May 26, 2007, gross margins for the Company's Joe's Jeans product increased to 48% from 42% in the corresponding period a year ago. Selling, general and administrative expense for the second quarter of 2007 increased 20% to $6.6 million compared to $5.5 million for the second quarter of 2006 due to the one-time non-cash charge associated with resolving all outstanding issues with the Company's former international distributor.
Innovo Group Inc, through its operating subsidiary Joe's Jeans, Inc., is a design and sales organization designing, producing and selling apparel products to the retail and premium markets under the Joe's and Joe's Jeans brands. Under these brands, the Company's apparel products consist of men's and women's denim and denim-related apparel products.
Highlights
-- Joe's Jeans net sales increased by approximately 71% to $15.2 million compared to $8.8 million a year ago.
-- Gross margin improved to 48% compared to 33% a year ago.
-- The Company generated operating income of $2.1 million excluding a $1.5 million one-time, non-cash charge associated with the settlement agreement with its former international distributor.
-- Company returns to profitability with net income of $422,000 for the second quarter of fiscal 2007.
For the quarter ended May 26, 2007, total net sales increased 55% to $15.2 million compared to $9.8 million in the prior year period. The company reported overall net income of $422,000, compared to an overall net loss of $5.0 million in the corresponding period a year ago.
Marc Crossman, President and Chief Executive Officer of Innovo, stated, "Our second quarter results continue to reflect the growth of the Joe's brand and highlight the improved operational performance that we have been striving to achieve throughout 2007. By growing our sales by 71%, improving our gross margins and achieving profitability in the second quarter, we exceeded internal projections. We intend to build on this momentum as we move into the back half of 2007 and start planning for 2008."
For the second quarter ended May 26, 2007, gross margins for the Company's Joe's Jeans product increased to 48% from 42% in the corresponding period a year ago. Selling, general and administrative expense for the second quarter of 2007 increased 20% to $6.6 million compared to $5.5 million for the second quarter of 2006 due to the one-time non-cash charge associated with resolving all outstanding issues with the Company's former international distributor.
Innovo Group Inc, through its operating subsidiary Joe's Jeans, Inc., is a design and sales organization designing, producing and selling apparel products to the retail and premium markets under the Joe's and Joe's Jeans brands. Under these brands, the Company's apparel products consist of men's and women's denim and denim-related apparel products.
Innovo Group Inc
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