By
Reuters
Published
Apr 11, 2010
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Joe's Jeans first quarter net drops; shares fall

By
Reuters
Published
Apr 11, 2010

April 8 (Reuters) - Premium denim company Joe's Jeans Inc (JOEZ.O) posted a 13 percent drop in net income as higher expenses offset a jump in sales, sending its shares down 12 percent in after-market trade.


Photo: www.joesjeans.com

"Our gross margin was impacted by the addition of lower margin new product lines as we continue to expand into new classifications," Chief Executive Marc Crossman said in a statement.

Gross margin at the apparel maker fell 1 percentage point to 49 percent, while selling general and administrative expenses rose 37 percent to $9.7 million.

The Los Angeles, California-based company earned $694,000, or 1 cent a share, compared with $800,000, or 1 cent a share, a year ago.

Revenue rose 41 percent to $23.2 million.

Joe's Jeans shares, which have more than doubled in the last three months, fell 43 cents to $3.02 in after-market trade. (Reporting by Vidya Lakshmi in Bangalore; Editing by Ratul Ray Chaudhuri)

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