Finally, a copy of our earnings release and a recording of this call will be available on our website, www.joesjeans.com, and a telephone replay will be available for 1 week from today.
Now I'll turn the call over to Marc.
Marc B. Crossman
Thanks, Lori, and thanks, everyone, for joining us today. I'll speak about the fourth quarter results, and then I'll turn the call over to Hamish for a discussion of our financials. Finally, we'll end with a Q&A session.
In the fourth quarter, we generated net sales of $25.4 million, an 8% increase. The increase in sales is indicative of 2 trends: First, our Wholesale business is starting to stabilize; and second, our retail strategy is now providing a material diversification of our revenue base.
During the quarter, we incurred a net loss of $268,000 compared to net income of $817,000 in the prior year. However, we invested an additional $1.3 million in advertising during the quarter.
More specifically, during the quarter, we launched an advertising campaign around our colored jeans. Right now, we are in a colored denim trend and rather than trying to identify and offer a handful of colors, we launched a program of 55 colors, which we cut to order. This program allows us to custom tailor our product offering to each retailer without maintaining too much inventory. The program has been a success in generating reorders. In addition, the ad campaign has had a very positive impact in our retail stores where we have had a presentation of all 55 colors on a single wall. With this advertising launch already underway, in future quarters we expect our advertising costs to taper.
Our Retail division sales increased 44%. Sales growth was driven not only by operating 7 stores more than a year ago, but also by very healthy 12% same-store sales growth. In the first quarter of 2012, which ends tomorrow, we have seen similar double-digit same-store sales growth. Most encouraging, same-store sales gains in our full price business exceeded the same-store sales gains from our outlet. This speaks to the fact that the customer is reacting positively to our new product delivery. We believe this positive consumer reception will filter down to our Wholesale business in the coming quarters.