Dallas, Texas 02/21/2014 (FINANCIALSTRENDS) – Joe’s Jeans Inc (NASDAQ:JOEZ) President, Director and Chief Executive Officer Marc B. Crossman while explaining the turn around to the analyst community, has been quoted to have said that, “During the quarter, our wholesale business grew 60%. More specifically, Hudson contributed $16.1 million, which, on a pro forma basis, was an increase over their prior year. Else grew 37% and Joe’s contracted 2%. Hudson’s wholesale growth sales grew double digits, with growth coming from both men’s and women’s department and specialty stores.” He also added that the Hudson line of business has emerged as the cash cow of the firm, primarily fuelled by reorder business picking up during the duration of the quarter.
For the fourth quarter, Joe’s Jeans Inc (NASDAQ:JOEZ) net sales went up by close to 50 percent, settling at $50.5 million. The major jump has been attributed to the $16 million incremental sales that were brought on to the books of the firm, with the completion of the buyout of Hudson in the last week of September’13. The increase in sales was offset by the more than 50 percent reduction in the operating income of the firm for the fourth quarter to $1.5 million as against $3.2 million it had managed to earn in 4Q12.
Providing their guidance for the first quarter of FY14, Joe’s Jeans Inc (NASDAQ:JOEZ) has warned that it will red flag an additional $165,000 as transaction costs from the Hudson deal in addition to a 41 million inventory cost addition. With this accounting adjustment, the entire spill over form the last fiscal with respect to Hudson take over is expected to end. Hence the firm has reported that it does not expect any additional impact to its second quarter outcome due to the Hudson buyout. The stock has posted a 2.5 percent increase in its market value since the 4Q results announcement.