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 one week from today.
Now I'll turn the call over to Marc.
Marc B. Crossman
Thanks, Lori, and thanks to everyone for joining us today. I'll speak about the first quarter results, and then I'll turn the call over to Hamish for a discussion of our financials. Finally, we will end with a Q&A session.In the first quarter, we generated net sales of $26 million, an increase of 23%. The increase in sales is indicative of 2 trends that we started seeing in the fourth quarter of fiscal 2011. First, our wholesale business has stabilized and even begun to show increases, with else being 19% increase from the prior year period. Second, our retail strategy continues to provide material diversification to our revenue base, representing 20% of our revenues for the quarter and increasing 40% over the prior year. During the quarter, our operating income increased by 244%, resulting in operating income of $1.8 million. Our retail division sales increased by 40% to $5.2 million for the quarter. Sales growth was driven by a very healthy 22% same-store sales increase, plus the addition of 4 more stores. For the first quarter, both our full-priced business and our outlets had healthy same-store sales gains, with our full-priced same-store sales up over 70%. With the first half of our second quarter underway, we are continuing to see solid same-store sales growth at our stores. Our retail gross margins increased 70% from 68% in the prior year quarter, primarily due to the addition of 4 stores, which included one full-priced store. Our strong same-store sales gain, coupled with the increase in gross margins, led to a 5% operating income margin, a big improvement over our negative 3% operating income margin a year ago. Also, our store-level operating margins more than tripled from the year-ago margins.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV