Joe’s Jeans Inc. (the “Company”) (NASDAQ: JOEZ) today announced financial results for the third quarter ended August 31, 2012. Highlights were:
- Consolidated third quarter net sales increased 25% to $30.3 million;
- Retail store net sales increased 24%;
- Retail same store sales increased 7%;
- Wholesale net sales increased 26%; and
- Operating income increased to $2.7 million for the third quarter of fiscal 2012.
For the third quarter of fiscal 2012, overall net sales were $30.3 million compared to $24.2 million from the prior year comparative period, or a 25% increase. Our overall gross profit for the quarter increased to $13.8 million from $9.7 million in the prior year comparative period, or a 42% increase. Our overall gross margin in the third quarter of fiscal 2012 was 46% compared to 40% in the prior year period. Our increase was a result of the negative impact of a $1.6 million inventory write down in the year ago period. Operating expense in the third quarter of fiscal 2012 was $11.1 million compared to $12.4 million in the prior year period. Excluding the impact of an asset impairment charge of $1.14 million in the year ago quarter, operating expenses would have been down slightly despite the fact that we operated four more stores this year than a year ago. We generated operating income of $2.7 million compared to an operating loss of $2.6 million in the prior year comparative period. Excluding the non-recurring charges a year ago, our operating income still increased dramatically to $2.7 million for the quarter. Fully diluted earnings per share were $0.02 for the third quarter of fiscal 2012 compared to a loss per share of $(0.03) in same period a year ago.
Marc Crossman, President and Chief Executive Officer, commented, “We are pleased to report another strong quarter of sales increases with a 25% increase over the prior year period. Both our wholesale and retail segments posted healthy increases. At 18% of sales, our retail segment continued to provide diversification to our revenue base. These positive top line results led to our operating income increasing to $2.7 million for the quarter.”