Joe’s Jeans Inc. (the “Company”) (NASDAQ:JOEZ) today announced financial results for the second quarter ended May 31, 2013. Highlights were:
Consolidated second quarter net sales increased 8% to $30.9 million;
Wholesale net sales increased 6%;
Retail store net sales increased 14%; and
Operating income was $2.1 million with fully diluted earnings per share of $0.02.
For the second quarter of fiscal 2013, overall net sales were $30.9 million compared to $28.6 million from the prior year comparative period, or an 8% increase. Our overall gross profit for the quarter was essentially flat at $13.5 million compared to $13.6 million in the prior year comparative period, a less than 1% decrease. Our overall gross margin in the second quarter of fiscal 2013 was 44% compared to 47% in the prior year period. Gross margins decreased as a result of an increased mix of sales from our lower margin line, else™, and the increased expense of producing our Vintage Reserve line in the U.S. Operating expense in the second quarter of fiscal 2013 was $11.4 million compared to $10.5 million in the prior year period. Our operating income decreased to $2.1 million for the quarter from $3.1 million in the prior year period and our fully diluted earnings per share were $0.02 per share for the second quarter of fiscal 2013. Marc Crossman, President and Chief Executive Officer, commented, “Our second quarter of fiscal 2013 resulted in continued top line growth for the Company.” Crossman continued, “With that said, both our wholesale and retail segments posted healthy growth for the quarter which translated into strong consolidated revenues. Further, we will continue to work to reduce our input costs on our else™ brand and transition our Vintage Reserve line to our facility in Mexico.”