Innovo reports branded apparel sales up $9.7mn in June

08 Jul '05

5 min read

Gross Margins
Gross profit increased to $7.2 million in the second quarter of fiscal 2005 compared to $2.5 million in the second quarter of fiscal 2004, a 194% increase. Our gross margin increased to 25% for the second quarter of fiscal 2005 from 10% for the second quarter of fiscal 2004.

This overall gross margin improvement for the second quarter of fiscal 2005 was primarily attributable to improved gross margins from our branded apparel products due to (i) an increase in the average selling price for our Joe's Jeans products compared to the second quarter of fiscal 2004; (ii) improved overall production and delivery performance in the second quarter of fiscal 2005; (iii) higher than average sales to discounters at cost in the second quarter of fiscal 2004 in order to reduce slower moving and excess inventory during that period; (iv) a one-time inventory write-down of $1.7 million we recorded in the second quarter of fiscal 2004 against our slow moving and out-of-season Fetish branded apparel inventory.

Our branded apparel gross margin increase was partially offset by a 1% decrease in gross margins for our private label apparel products in the second quarter of fiscal 2005 compared to the second quarter of fiscal 2004.

Income (Loss) from Continuing Operations
The factors explained above resulted in the Company generating net income from continuing operations of $423,000 for the second quarter of fiscal 2005, or $0.01 per share, compared to a loss from continuing operations of $6.0 million for the second quarter of fiscal 2004, or $0.21 per share.

More Innovo Group Inc News... More Fashion News - United States Of America...