Joe's Jeans Inc.announced financial results for the third quarter ended August 31,2012.
For the third quarter of fiscal 2012,overall net sales were$30.3 million compared to$24.2 million from the prior year comparative period,or a 25%increase.Company's overall gross profit for the quarter increased to$13.8 million from$9.7 million in the prior year comparative period,or a 42%increase.Our overall gross margin in the third quarter of fiscal 2012 was 46%compared to 40%in the prior year period.
Our increase was a result of the negative impact of a$1.6 million inventory write down in the year ago period.Operating expense in the third quarter of fiscal 2012 was$11.1 million compared to$12.4 million in the prior year period.
Excluding the impact of an asset impairment charge of$1.14 million in the year ago quarter,operating expenses would have been down slightly despite the fact that we operated four more stores this year than a year ago.We generated operating income of$2.7 million compared to an operating loss of$2.6 million in the prior year comparative period.
Excluding the non-recurring charges a year ago,our operating income still increased dramatically to$2.7 million for the quarter.Fully diluted earnings per share were$0.02 for the third quarter of fiscal 2012 compared to a loss per share of$(0.03)in same period a year ago.
Marc Crossman,President and Chief Executive Officer,commented,"We are pleased to report another strong quarter of sales increases with a 25%increase over the prior year period.Both our wholesale and retail segments posted healthy increases.At 18%of sales,our retail segment continued to provide diversification to our revenue base.These positive top line results led to our operating income increasing to$2.7 million for the quarter."
Retail
Net sales from our retail segment in the third quarter increased 24%to$5.5 million compared to$4.4 million in the prior year comparative period.The growth in retail sales was driven by a 7%same store sales increase and revenue contribution from 25 stores compared to 21 stores in the prior year period.Gross margins for our retail segment increased to 71%from 67%in the year ago period.
Excluding the asset impairment charge a year ago,retail operating expense increased due to the expansion of our store base.Overall,for the third quarter of fiscal 2012,we had operating income of$140,000 compared to an operating loss of$1.3 million a year ago for our retail segment.
Mr.Crossman commented,"Our retail sales continue to perform well above our expectations,and in particular,our full price retail stores.Our full price retail stores continued to post double digit same store sales gains."
Wholesale
Net sales for our wholesale segment in the third quarter of fiscal 2012 increased 26%to$24.8 million from$19.7 million in the prior year period.Sales gains came from our Joe's men's and international sales channels and the addition of sales from our new brand,else™.Gross margins for our wholesale segment were 40%for the third quarter of fiscal 2012 compared to 34%in the prior year comparable quarter.