Joe's Jeans Reports Steep LossTuesday, October 11, 2011
Shares of Joe's Jeans Inc. fell 26 percent in after-hours trading Tuesday after the apparel manufacturer and retailer reported an unexpected loss for its fiscal third quarter on write-downs and lower wholesale revenue.
After the markets closed on Tuesday, the Commerce apparel maker reported a net loss of $2 million (-3 cents per share) for the quarter ended Aug. 31, compared with net income of $600,000 (1 cent) in the same period last year. Revenue fell 5 percent to $24.2 million.
Analysts surveyed by Thomson Reuters on average expected per-share profit of 2 cents on revenue of $27.8 million.
Net sales for the wholesale segment fell 7.5 percent to $19.7 million as declines in domestic women's apparel and international business offset growth in domestic men’s apparel. Retail net sales rose 4.7 percent to $4.4 million as the company increase the number of branded stores from 14 to 21 over the past year.
The company took an impairment charge of $1.14 million related to two retail stores, and a $1.6 million write down related to outdated inventory.
Chief Executive Marc Crossman was more optimistic about prospects for the current quarter thanks to new lines selling out in certain stores and prompting reorders.
"Our Fall 2011 collection, which hit retail stores at the very end of the third quarter, has performed very well,” Crossman said in a statement.
Shares, which earlier closed up 5 cents to 69 cents on the Nasdaq, dropped 26 percent in after-market trading.