Innovo Group Inc. (NASDAQ: INNO) today announced financial results for the first quarter ended February 24, 2007.
-- Net sales increased 32% to $13.8 million compared to $10.4 million in the first quarter of 2006. -- The Company generated positive operating income during the period.-- The Company experienced positive operating leverage during the first quarter, growing sales 32%, improving gross profits by 180% and reducing SG&A by 13% from a year ago.
For the quarter ended February 24, 2007, total net sales from continuing operations increased 32% to $13.8 million compared to total net sales from continuing operations of $10.4 million in the prior year period. The company reported a loss from continuing operations of $173,000, compared to a loss from continuing operations of $4.1 million in the corresponding period a year ago.
Marc Crossman, President and Chief Executive Officer of Innovo, commented, "Our first quarter results underscore the positive progress we have made broadening the Joe's Jeans brand by continuing to increase our domestic distribution and evolving our product line. Our strong sales results coupled with a reduction in our operating expenses allowed us to dramatically improve our losses from a year ago. We are very pleased with our start to fiscal 2007 and look forward to continuing with this positive momentum across our business."
For the quarter ended February 24, 2007, gross margins for the Company's Joe's Jean business increased to 37% from 29% in the corresponding period a year ago. Selling, general and administrative expense for the first quarter of 2007 decreased 13% to $5.0 million compared to $5.7 million for the first quarter of 2006.
The Company will host a conference call to discuss its first quarter fiscal 2007 results today, April 10, 2007 beginning at 4:30 pm ET. To access the live call, please dial (866) 356-3377 (U.S.) or (617) 597-5392 (international). The conference ID number and participant passcode is 98226508 and is entitled the "Q1 2007 Innovo Group Earnings Conference Call." The information provided on the teleconference is only accurate at the time of the conference call, and Innovo Group will take no responsibility for providing updated information. A telephone replay of the conference call will be available beginning at 6:30 PM Eastern Time on April 10, 2007 until 11:59 PM Eastern Time on April 24, 2007 by dialing (888) 286-8010 (U.S) or (617) 801-6888 (international) and using the conference passcode 56339275. In addition, the conference call will be archived for two weeks on the Company's website at www.innovogroup.com.