Joe’s Jeans Inc. said Wednesday it has been warned by the Nasdaq Stock Market that the company’s shares are in danger of being delisted if they don’t climb to $1 or more.
This story first appeared in the September 17, 2009 issue of WWD. Subscribe Today.
The stock of the Los Angeles-based premium denim producer fell 2 cents, or 2.2 percent, to 75 cents Wednesday and hasn’t closed above $1 since Oct. 1. Joe’s ran afoul of Nasdaq rules because its shares failed to close at or above $1 for 30 consecutive trading sessions.
The company has until March 15 to regain compliance by closing at $1 or more for 10 consecutive trading days.
If the company is still below the required price by the March deadline, it could be granted an extension of 180 calendar days to move its stock up or make an appeal to Nasdaq.
Joe’s profits for the quarter ended May 31 slipped 17.8 percent to $1.3 million, or 2 cents a diluted share, as sales fell 4.3 percent to $17.2 million.
“Our women’s specialty store business experienced the most difficulty this quarter,” Marc Crossman, president and chief executive officer, said on a conference call discussing the results this summer. “While our Anthropologie business remained quite healthy, the majority of our small, independent boutique purchases were down from the previous year, concurrent with their weak financial performance.”