Joe’s Jeans Inc. had a solid second quarter, with net income jumping 99.4 percent and net sales up 56 percent.
For the three months ended May 31, net income was $2.3 million, or 1 cent a diluted share, from $1.2 million, or 2 cents, a year ago. Net sales rose to $48.2 million from $30.9 million.
The results at Joe’s Jeans were boosted by its $94.1 million acquisition of Hudson Clothing Holdings Inc., which it completed on Sept. 30. Hudson Clothing owns the Hudson Jeans brand.
In a regulatory filing with the Securities and Exchange Commission, or Form 10-Q, the company said wholesale sales in the quarter shot up 65.8 percent to $40.4 million from $24.4 million a year ago. That included $17.9 million in wholesale net sales from the Hudson brand. Retail sales rose 19.3 percent to $7.8 million from $6.5 million, driven by revenue contribution of $837,000 from Hudson.
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For the six months, net income swung to the black at $161,000, or 0 cents, against a net loss of $5.2 million, or 8 cents, a year ago. Net sales increased 58.4 percent to $95.5 million from $60.3 million.
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Marc Crossman, president and chief executive officer of Joe’s Jeans, said, “We have been working these past two quarters to position both companies to realize the cost savings benefits from our acquisition of Hudson. We expect to begin to see the benefit of that work in the third quarter of fiscal 2014.”
Crossman also said the company expects the cost savings to ramp up during the fourth quarter. By yearend, he said, “we expect to be running at an annualized cost-savings rate in excess of $10 million per year.”
The ceo also said the company is seeing improvement in same-store sales comps at company-owned retail stores, paving the way for core results — excluding the benefits realized from the cost savings — to pick up in the back half of the year.
Shares of Joe’s Jeans ended the trading session unchanged at $1.03. The company’s earnings report, which came after the markets closed, drove the shares up 13.6 percent in early after-market trading to $1.17.