Expenses Move Joe's Jeans to LossMonday, April 15, 2013
Joe's Jeans Inc. on Monday moved from a profit to a loss in the first quarter on higher operating expenses.
After the markets closed, the Los Angeles apparel company reported a net loss of $6.4 million (-10 cents a share) compared with net income of $794,000 (1 cent) in the same period a year earlier.
Net sales rose 13 percent to $29.4 million, with wholesale sales up 11 percent and retail sales rising 23 percent. “Our new stores continue to perform well, and we are pleased to see that our strategy to target smaller footprint stores in top locations is paying off,” Chief Executive Marc Crossman said in a statement.
Excluding $8.7 million in one-time buy-out expenses, net income was $1.7 million (3 cents).
Shares earlier closed down 9 cents, or 4.6 percent, to $1.85 on the Nasdaq.