Joe's Jeans Inc announced financial results for the fourth quarter ended November 30, 2007. Highlights were:
• Annual net sales of $62.8 million, a 35% increase over 2006 sales of $46.6 million.
• Full year profitability of $2.3 million in net income compared to a loss of $9.3 million in the prior year, translating into earnings per share of $0.05 on a fully diluted basis.
• Record quarterly sales for the fourth quarter of $18.0 million, a 29% increase over the fourth quarter of 2006.
• Gross margins from the Joe's brand of 42% for the full year compared to 37% for the year ended November 25, 2006, a 5 percentage point improvement.
For the year ended November 30, 2007, overall net sales were $62.8 million compared to overall net sales of $46.6 million from the prior year comparative period, a 35% increase. For the fourth quarter, Joe's Jeans net sales were $18.0 million, a 29% increase over net sales of $14.0 million during the prior year comparative period.
The Company generated net income of $2.3 million for the fiscal year ended November 30, 2007, or $0.05 per share on a fully diluted basis. For the fourth quarter, the Company earned net income of $1.1 million, or $0.02 per share on a fully diluted basis.
Marc Crossman, President and Chief Executive Officer, commented, "We are very pleased to be reporting better than expected sales growth and strong margin improvement for both the full year and fourth quarter of 2007, which resulted in our first profitable year since 2002.
The strong sales growth was driven primarily by solid performance in our women's department store and specialty store businesses, and 175% growth in our men's business from the prior year. Improvements to our gross margin were due to shifting our production outside the U.S."
Crossman continued, "As we move through 2008 and beyond, we plan to build on the success of the past year by continuing to grow our women's domestic wholesale business, expand our men's presence, open new distribution channels internationally to capture sales opportunities abroad, and see our new retail strategy materialize. We are truly excited for the opportunities that lie ahead for the Joe's brand, and look forward to another successful year for 2008."
For the year ended November 30, 2007, gross margins for the Joe's brand were 42% compared to 37% for the year ended November 25, 2006, a 5 percentage point increase. For the fourth quarter, gross margins for the Joe's brand were 42% compared to gross margins of 38% during the prior year comparative period, a 4 percentage point increase.
SG&A during the fourth quarter was $6.2 million compared to $5.2 million in the fourth quarter of 2006, a 19% increase primarily due to: higher distribution and shipment costs due to increased sales volume from the prior year period; higher professional fees associated with the acquisition of the Joe's brand; and, additional headcount to support the Company's retail strategy and its growth.
