Erstwhile Nasdaq highflyer Innovo Group ( INNO) ground to a fresh 52-week low after disclosing that inventory writedowns and advertising costs related to the Fetish and Shago lines caused it to swing to a fourth-quarter loss. Los Angeles-based Innovo lost $5.8 million, or 27 cents a share, on revenue of $37.3 million in the quarter ended Nov. 29, 2003, compared with earnings of $41,000, or break-even on a per-share basis, on revenue of $9.5 million last year. Innovo said its gross margin slipped to 6% in the latest quarter from 34% a year ago as its revenue mix deteriorated and the company took writedowns and adjustments totaling $4.3 million on "slow-moving, out-of-season and obsolete inventory." Innovo's fourth-quarter advertising expense came out to $463,000, more than double the year-ago level, to establish and market its Fetish, Shago and Joe's branded products through both advertising and tradeshows. Innovo also saw production delays in its branded apparel deliveries, which increased costs to bring product to market. After soaring as high as $7.80 last summer, Innovo was recently changing hands for $2.26, down 44 cents, or 16.3%.