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    Stock Report for Joe’s Jeans Inc. (JOEZ)

    Joe’s Jeans Inc. (JOEZ) designs, sources and distributes its Joe’s® and Joe’s Jeans™ branded apparel products to over 1,200 retail doors in the U.S. and abroad. With its competitive advantages and industry expertise in denim-wear and denim-related products, JOEZ produces one of the most recognized and sought-after premium denim brands in the world. Its products are designed internally and sourced to specification from suppliers primarily located in the U.S., Mexico and Morocco. Finished goods are then distributed directly to the Company’s customers from its distribution center in Los Angeles. JOEZ maintains third party showrooms in New York and Los Angeles to showcase its Joe’s® and Joe’s Jeans™ products for its customers. The Company has recently opened a branch office in Paris to distribute its products in Europe.

    Share Statistics (29-Feb-12) FY2009 FY2010 % Chg Q32010 Q32011 % Chg
    Symbol JOEZ Revenue, $Mn 80.12 98.18 22.5% 25.53 24.15 -5.4%
    -1Current price $0.86 Gross marg. 49.7% 47.1% -5.2% 46.2% 40.3% -12.8%
    52wk Range: $0.50-$1.19 Oper. margin 6.1% -10.9%
    Avg Vol (3m): 176,873 Net margin 30.6% 2.6% -91.5% 2.2% -8.4% -481.8%
    Market Cap. 54.67M
    Shares Outstanding 64.22M EPS, $ 0.40 0.04 -90.0% 0.01 -0.02 -300.0%

    Source:, SEC Filings.

    Investment Highlights

    Shares in Joe’s Jeans Inc. (JOEZ) leaped as much as 34% on Wednesday, extending the prior day’s gains when the Company reported its fourth quarter results showing increases in sales. Over 2.52 million shares traded hands during the session, versus the 10-day average volume of over 230.43 K.  JOEZ is currently above its 50-day moving average of $0.66 and above its 200-day moving average of $0.61.

    JOEZ shares have gained 39.7% in the last five days and 25.7% in the last month.  Year-to-date, the stock is down 20.0%.

    The CA-based apparel company reported overall net sales of $25.4 million for the fourth quarter ended November 30, 2011, up 8% from $23.6 million reported in the comparable period of the previous year. Overall gross profit for the quarter came in at $11.7 million, a 1% increase from $11.5 million in the prior-year period.

    Net sales from its retail segment in the fourth quarter increased 44% to $5.9 million, as compared to $4.1 million in the prior year comparative period, representing 23% of the Company’s consolidated net sales. Net sales for its wholesale segment in the fourth quarter were flat with the prior year fourth quarter at $19.5 million.

    The Company’s overall gross margin for the quarter dropped to 46% from 49% last year due to lower gross margins in its wholesale business. Operating expense for the recently reported quarter was $11.8 million, up from $9.6 million a year ago, which JOEZ attributed to a $1.8 million increase in advertising and professional fees.

    JOEZ realized a net loss of $268 K, or $0.00 per share, for the fiscal fourth quarter of 2011, versus an operating income of $817 K, or $0.01 per share, in the comparable period a year ago.

    The Company yesterday announced the launch of a new brand, else™, to be sold exclusively at Macy’s. In a statement, the Company said that else™ was created to reach young women who are looking for a premium denim-like product at a more affordable price. The price points start at $68.

    JOEZ made the following statements: “Macy’s has dedicated space in its Impulse departments in 140 stores throughout the U.S. to showcase the else™ brand. The new line will also be available at The else™ product offering, which includes five staple denim fits: skinny, boot cut, cropped, boyfriend and a cuffed short, will be rolling out at Macy’s over the next two weeks.”

    JOEZ shares added $0.16 to close Wednesday’s trade at $0.86, an increase of over 22% for the day.


    Financial Strength (29-Feb-2012)




    S&P 500

    Quick Ratio (MRQ) 1.18 1.11 1.07 0.65
    Current Ratio (MRQ) 2.80 1.56 1.30 1.00
    LT Debt to Equity (MRQ) 0.00 9.55 55.20 171.80
    Total Debt to Equity (MRQ) 0.00 18.02 95.52 224.97
    Interest Coverage (TTM) 16.54 0.83 0.30 26.04

    Source:, SEC Filings.

    Technical Analysis


    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb29-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    True Religion Apparel Inc. TRLG 26.37 660.15M 13.59 11.62 1.43 1.27
    The Jones Group Inc. JNY 9.86 811.07M 9.76 8.57 0.21 0.20
    Textile – Apparel Clothing Median       12.97 n/a 0.40 n/a
    Joe’s Jeans Inc. JOEZ 0.86 55.87M n/a 28.67 0.59 0.50

    Source: Thomson Financial

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