Growth in international markets and a boost in sales from the opening of four stores lifted results for Joe’s Jeans in the first quarter.
For the three months ended Feb. 28, the premium denim label said earnings jumped 149.2 percent to $800,000, or 1 cent a diluted share, compared with earnings of $321,000, or 1 cent a share, in the same period a year ago. Earnings per share stayed flat because of the rounding of EPS figures.
Sales gained 8.4 percent to $16.5 million from $15.2 million. According to the company’s quarterly filing with the Securities and Exchange Commission, sales in the European market improved by $149,000, or 24 percent. Joe’s Jeans also opened four branded stores during the quarter, adding $927,000 in sales.
Marc Crossman, president and chief executive officer, said sales gains were attributable to an updating of the core basics program as well as shifting more of the assortment from basics to fashion pieces.
“We saw the consumer was reacting to more fashion details and fashion silhouettes, and we needed to change that in our business,” Crossman said during a conference call with analysts.
The company also responded to the pricing pressures being felt by its retail customers with the introduction of two women’s jeans and a men’s style priced at $138, lowering the brand’s opening price point from $150.
“The success of these changes is evidenced by the strong sell-through we’re seeing with our retailers,” Crossman said.
The company’s women’s business rose 6 percent, and the men’s business spiked 42 percent. The U.S. women’s business fell by $187,000, and department store sales declined 8 percent.
Two outlet stores and two full-price stores opened in the fourth quarter. Crossman said plans to launch more stores were on hold, and it would be “prudent” to wait for further declines in rent rates before signing new leases.
Joe’s Jeans has moved more than 65 percent of its production to Mexico since 2007. Crossman said reports that the Mexican government may shutter private businesses for days in response to concerns over swine flu would not materially impact operations, because the company had enough inventory to offer to retailers to get them through a shutdown.
The denim brand also revealed year-end results for 2008, which had been delayed because of questions from the SEC regarding how the company accounted for the acquisition of founder and head designer Joe Dahan’s businesses. Earnings for 2008 rose 117.5 percent to $4.9 million, or 8 cents a share, compared with earnings of $2.3 million, or 5 cents, in 2007. Sales rose 10.2 percent to $69.2 million from $62.8 million.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast