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Joe’s Jeans Inc. (the “Company”) (NASDAQ: JOEZ) today announced financial results for the second quarter ended May 31, 2012. Highlights were:
Consolidated second quarter net sales increased 16% to $28.6 million;
Retail store net sales increased 26%;
Retail same store sales increased 10%;
Wholesale net sales increased 14%; and
Operating income increased 82% to $3.1 million for the second quarter of fiscal 2012.
For the second quarter of fiscal 2012, overall net sales were $28.6 million compared to $24.7 million from the prior year comparative period, or a 16% increase. Our overall gross profit for the quarter increased to $13.6 million from $11.5 million in the prior year comparative period, or an 18% increase. Our overall gross margin in the second quarter of fiscal 2012 and fiscal 2011 was consistent at 47%. Operating expense in the second quarter of fiscal 2012 was $10.5 million compared to $9.8 million in the prior year period. Operating expenses increased primarily as a result of operating three more retail stores this period than the year ago period. We generated operating income of $3.1 million compared to $1.7 million in the prior year comparative period and fully diluted earnings per share of $0.02 for the second quarter of fiscal 2012 compared to earnings per share of $0.01 in same period a year ago.
Marc Crossman, President and Chief Executive Officer, commented, “We are pleased to report record sales of $28.6 million for the quarter, a 16% increase over the prior year period. Both our domestic wholesale and retail segments posted healthy increases and our retail segment continued to provide diversification to our revenue base. With these positive results, our operating income increased 82% to $3.1 million.”
Net sales from our retail segment in the second quarter increased 26% to $5.7 million compared to $4.5 million in the prior year comparative period. The growth in retail sales was driven by a 10% same store sales increase and revenue contribution from 23 stores compared to 20 stores in the prior year period. Gross margins for our retail segment increased to 71% from 65% in the year ago period. Retail operating expense increased as a result of additional expenses associated with expanding our store base. Overall, for the second quarter, we had operating income of $570,000 compared to $143,000 a year ago for our retail segment.