Strong sales and a move to offshore sourcing boosted Joe’s Jeans Inc. to major earnings gains in the third quarter.
The Los Angeles-based premium denim label said earnings vaulted to $2.2 million, or 4 cents a diluted share for the three months ended Aug. 31, compared with $913,000, or 2 cents, in the same period a year ago.
“We are pleased with the progress we made this quarter and we look forward to capitalizing on our position in the marketplace for 2009,” said Marc Crossman, president and chief executive officer.
Sales in the period rose 16.2 percent to $18.2 million from $15.7 million, with growth across the company’s women’s, men’s, international and children’s businesses.
Hamish Sandhu, chief financial officer, said women’s sales at domestic department stores gained 24 percent during the quarter.
“We’re not seeing canceled orders,” Crossman said of the department store channel. “They’re clearly ordering closer to the vest. When you look at premium denim as a whole within the department store, it’s obviously a bright spot.”
However, he acknowledged that what qualified as a bright spot in this retail environment could mean business was down 5 percent or flat.
Gains among department stores were partly offset by declining orders from the company’s specialty store customers, many of which have been forced to reduce inventories or have gone out of business because of the difficult economic environment. Crossman added that specialty stores’ denim businesses were adversely affected by the heavy promotional activity of department stores during the summer months.
Results also were driven by a shift from domestic sourcing to lower-cost facilities in Mexico and Morocco. Sandhu said 86 percent of all product shipped was manufactured outside the U.S., compared with 79 percent in the previous quarter.
For the nine months through August, earnings spiked to $5.1 million, or 9 cents, compared with $1.2 million, or 3 cents, for the same period a year ago. Sales rose 15 percent to $51.4 million from $44.7 million.
Joe’s is looking to expand its company-owned retail network. Last week, the company opened its first store, in Chicago’s Bucktown neighborhood. Crossman said the company is on track to open three more units by the end of the year. A second store is to launch in the last week of this month at Woodbury Commons in Woodbury, N.Y.
Crossman said Joe’s will be able to achieve single-digit growth during the fourth quarter and will introduce a revamped core women’s range to kick-start the new year.
“You have to be a lot more creative to pull away from being a basic five-pocket, so that runs the gamut on everything you can do with the jeans,” he said.
More emphasis is being put on details such as hand-stitching, embellishments and distressed looks. Management hopes its more mature customer will remain willing to pay for premium products.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye