Joe´s Jeans Q4 sales up by 8% to USD25.4 million

For the fourth quarter ended November 30, 2011, overall net sales at Joe´s Jeans Inc. were $25.4 million compared to $23.6 million from the prior year comparative period, or an 8% increase. "Our net income was impacted by the

advertising and related expenses associated with the launch of our '55 Colors' campaign. As evidenced by our sales, the campaign and the associated product are having a very positive impact on our business," Marc Crossman, President and Chief Executive Officer, commented.

Crossman continued, "With a majority of the advertising commitments already underway, we expect advertising costs to decrease in future quarters. We incurred a net loss of $268,000 compared to operating income of $817,000 in the prior year comparative period and fully diluted loss per share of $0.00 for the fourth quarter of fiscal 2011 compared to earnings per share of $0.01 in same period a year ago."

“Our overall gross profit for the quarter increased to $11.7 million from $11.5 million in the prior year comparative period, or a 1% increase,” said the company in a release on Tuesday.

Our overall gross margin in the fourth quarter of fiscal 2011 was 46% compared to 49% in the prior year fourth quarter, while fourth quarter of fiscal 2011 gross margin was lower due to lower gross margins in our wholesale business.

Operating expense in the fourth quarter of fiscal 2011 was $11.8 million compared to $9.6 million a year ago. Operating expenses increased primarily as a result of a $1.8 million increase in advertising and professional fees.

Net sales from the retail segment in the fourth quarter increased 44% to $5.9 million compared to $4.1 million in the prior year comparative period, representing 23% of the company's consolidated net sales. The growth in retail sales was driven by revenue contribution from growing our store base from 17 to 22 stores in the comparative periods and a 12% same store sales increase. Gross margins for our retail segment increased to 65% from 61% in the year ago period. Retail operating expense increased as a result of additional expenses associated with expanding our store base compared to the prior year period. “Overall, for the fourth quarter, we had operating income of $496,000 compared to operating loss of $145,000 a year ago for our retail segment.”

Net sales for the wholesale segment in the fourth quarter of fiscal 2011 were flat with the prior year fourth quarter at $19.5 million.

Men's and international sales channels experienced growth, while the women's sales channel decreased from the comparative quarter, albeit at a slower pace than the past several quarters. Gross margins for wholesale were 40% for the fourth quarter of fiscal 2011 compared to 46% in the prior year comparable quarter.