Joe's Jeans Inc. shares rose nearly 6 percent Tuesday morning, a day after the apparel maker reported a more than 41 percent jump in second-quarter earnings thanks to cost controls and sales from its growing number of retail stores.
After the markets closed Monday, the Commerce company reported net income of $751,000 (1 cent per share) for the quarter ended May 31, compared with $532,000 (1 cent) a year ago. The company had more shares outstanding in this year’s quarter.
Net sales were down 5 percent to $24.7 million on a nearly 12 percent drop in wholesale revenues, the company’s largest segment. That was offset by 52 percent increase to $4.5 million in retail sales at its 20 stores, up from 13 locations a year ago.
Analysts surveyed by Thomson Reuters on averaged expected per-share profit of 1 cent on revenue of $23.4 million.
Reduced sample and distribution costs, plus lower payroll expenses, helped lower overall operating expenses. Overall gross margins improved to 47 percent, compared with 44 percent a year ago.
"We continue to believe our fall and holiday 2011 lines, with innovative fabric and fashion forward details, will resonate well with our customers and bring about a shift in our women's domestic department store performance," Chief Executive Marc Crossman said in a statement.
Shares closed up 4 cents, or 4.5 percent, to 92 cents on the Nasdaq.
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