Loss Narrows for Joe's JeansWednesday, April 9, 2014
Joe's Jeans Inc. on Wednesday reported a smaller fiscal first-quarter net loss and a boost in sales, both attributed to its acquisition of Hudson Clothing Holdings Inc.
The Los Angeles denim company reported of $2.2 million (3 cents a share) for the quarter ended Feb. 28, compared with a loss of $6.4 million (-10 cents) in the same period a year earlier. Analysts surveyed by Thomson Reuters on average expected Joe’s to report a loss of 4 cents a share.
Sales rose 61 percent to $47.3 million. Joe's Jeans completed its acquisition of Hudson on Sept. 30, and the first quarter was the first with Hudson as one of its subsidiaries. The net loss was affected by charges and other costs related to the acquisition.
But Hudson also contributed to the quarter, with Chief Executive Marc Crossman noting the new subsidiary brought in $17.3 million in wholesale net sales.
“We are optimistic about our wholesale channel as we move into the back half of the year,” Crossman said in a statement. “Our retail division continues to develop and mature along with our same store sales base. Both our Joe’s and Hudson e-shops continue to drive sales and profits for our retail segment.”
Shares earlier closed up 2 cents, or 1.6 percent, to $1.24 on the Nasdaq.