Innovo Crushed on Loss

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%.

More from Technology

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Some Companies Are Already Feeling the Effect of GDPR

Some Companies Are Already Feeling the Effect of GDPR

Experts Break Down GDPR Risks for Investors

Experts Break Down GDPR Risks for Investors

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company