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Joe's brand delivers record qtly top-line growth
10 Oct '07
2 min read
Innovo Group Inc announced financial results for the third quarter ended August 25, 2007.
Highlights:
• Net sales increased 26% to $15.7 million compared from $12.4 million in the third quarter of 2006.
• Gross margins increased 200 basis points to 42.0% from 40.0% a year ago.
• SG&A as a percentage of sales decreased to 34.0% compared to 41.5% last year.
• Operating income improved to $1.2 million versus an operating loss of $283,000 in the third quarter of 2006.
For the quarter ended August 25, 2007, total net sales increased 26% to $15.7 million compared to $12.4 million in the prior year period. The company reported operating income of $1.2 million compared to an operating loss of $283,000 in the corresponding period a year ago. Net income was $913,000 during the period, translating into earnings per share of $0.02.
Marc Crossman, President and Chief Executive Officer of Innovo Group, commented, "Our third quarter performance was very gratifying, as the Joe's brand once again delivered record quarterly top-line growth and outpaced our expectations."
"These results reflect the effective execution of our strategy to increase the penetration of our department store business, expand our shelf space within existing accounts, evolve our men's product line, and underscore the growing lifestyle status of the brand.
"At the same time, our ability to reduce production costs and maintain expenses translated into a significant improvement in operating income for the quarter. We are very pleased with the progress we have made during the past several months and we move forward committed to capitalizing on the many opportunities we believe exist going forward, both domestically and overseas."
For the third quarter of fiscal 2007, gross margins for the Company's Joe's Jean business increased 200 basis points to 42.0% from 40.0% in the corresponding period a year ago. Selling, general and administrative expenses for the third quarter of 2007 were $5.3 million, or 34.0% of sales, compared to $5.2 million, or 41.5% of sales for the third quarter of 2006.
Highlights:
• Net sales increased 26% to $15.7 million compared from $12.4 million in the third quarter of 2006.
• Gross margins increased 200 basis points to 42.0% from 40.0% a year ago.
• SG&A as a percentage of sales decreased to 34.0% compared to 41.5% last year.
• Operating income improved to $1.2 million versus an operating loss of $283,000 in the third quarter of 2006.
For the quarter ended August 25, 2007, total net sales increased 26% to $15.7 million compared to $12.4 million in the prior year period. The company reported operating income of $1.2 million compared to an operating loss of $283,000 in the corresponding period a year ago. Net income was $913,000 during the period, translating into earnings per share of $0.02.
Marc Crossman, President and Chief Executive Officer of Innovo Group, commented, "Our third quarter performance was very gratifying, as the Joe's brand once again delivered record quarterly top-line growth and outpaced our expectations."
"These results reflect the effective execution of our strategy to increase the penetration of our department store business, expand our shelf space within existing accounts, evolve our men's product line, and underscore the growing lifestyle status of the brand.
"At the same time, our ability to reduce production costs and maintain expenses translated into a significant improvement in operating income for the quarter. We are very pleased with the progress we have made during the past several months and we move forward committed to capitalizing on the many opportunities we believe exist going forward, both domestically and overseas."
For the third quarter of fiscal 2007, gross margins for the Company's Joe's Jean business increased 200 basis points to 42.0% from 40.0% in the corresponding period a year ago. Selling, general and administrative expenses for the third quarter of 2007 were $5.3 million, or 34.0% of sales, compared to $5.2 million, or 41.5% of sales for the third quarter of 2006.
Innovo Group Inc
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