News Flash

Innovo's Q2 loss deepens

30 Jun '06

3 min read

During the period, net sales of the Company's Joe's branded apparel were $8.9 million compared to $9.0 million in the prior year period, a 2 percent decrease. This decrease was the result of a decrease in international sales. Net sales of the Company's other branded apparel increased to $940,000 during the second quarter from $733,000 a year ago.

Gross margins for the second quarter decreased to 33 percent from 44 percent last year due primarily to a write down of remaining raw materials for indie apparel that the Company did not produce. SG&A expenses increased over the prior year period from $4.9 million to $5.5 million primarily associated with non-cash stock based compensation expenses.

Mr. Crossman further added, "Through the second quarter of 2006 we successfully completed a number of near-term strategic objectives that we believe have put us on the right track toward delivering consistent long-term growth and increased profitability. With the sale of our private label business completed, the closing of our indie brand and the other strategic operational changes we have been making, we believe we are better positioned going forward to focus all of our resources on growing our Joe's and Joe's Jeans® branded business."

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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