Joe’s Jeans Sees 1st-Quarter Sales Rise 23 Percent
Los Angeles–based premium-denim lifestyle brand Joe’s Jeans is on a tear.
Consolidated sales for the first quarter rose 23 percent to $26 million. Its retail-store net sales rose 40 percent to $5.2 million, and retail same-store sales rose 22 percent.
“We are extremely pleased with our results for the quarter,” said Marc Crossman, Joe’s Jeans president and chief executive officer. “The healthy increase in consolidated sales is indicative of two trends that we started seeing in the fourth quarter of fiscal 2011: First, our wholesale business has not only stabilized but is growing across all channels. Second, our retail strategy continues to provide material diversification to our revenue base, now representing 20 percent of our revenue for the quarter. Because we generated healthy increases in both retail and wholesale sales while maintaining expenses, this translated into strong growth in our operating income.”
Joe’s Jeans currently operates 23 stores across the United States, including its newest, a 1,500-square-foot store at the Aventura Mall in Aventura, Fla.
“South Florida has been on our target list of markets to expand into for some time now, so we are thrilled to have found this great location and store size,” Crossman said. “With South Florida as a popular destination for domestic and international travelers, we are excited to showcase the Joe’s lifestyle brand to new and existing customers.”
On the wholesale side of the business, Joe’s Jeans’ net sales rose 19 percent to $20.8 million, and operating income increased 244 percent to $1.8 million during the same period.
Crossman credited the brand’s fashion, fabrics and marketing—as well as its new Else brand, sold exclusively at Macy’s—for the increase.
“Our efforts during the past few quarters in revamping our core line—creating new, unique fashion items in innovative fabrics, prints and colors—and investing in advertising have had positive results on our sales,” he said. “Our Else brand, which we only commenced shipping in February, contributed to our top-line growth, and we are pleased with the addition of this brand into our portfolio.”—Alison A. Nieder
