Shares of Denim brand Joe’s Jeans Inc. erased declines from earlier in the day in after-hours trading Monday following the Los Angeles-based jeans marketer’s report of a jump increase in second quarter revenues, gross margin, same-store sales and profits, on the back of rising sales.

The company said yesterday (16 July) that in the three months ended May 31, Joe’s recorded a net income rise of 88.8% to US$1.4m from the year ago mark of $751,000. Sales increased 16% over the period to $28.6m. Gross margin remained flat at 47%.

Retail sales increased 26% to $5.7m, driven by a 10% same-store sales increase combined with the contribution of three new stores. Wholesale revenue was up 14% to $22.9m from $20.2 million. Wholesale operating income improved 10 percent to $6.3 million from $5.7 million while retail profitability quadrupled to $570,000 from $143,000.

Revenues advanced 16 percent to $28.6 million, from $24.7 million in the comparable 2011 period, while gross margin grew to 47.3 percent of sales from 46.6 percent in last year’s quarter.

“Both our domestic wholesale and retail segments posted healthy increases and our retail segment continued to provide diversification to our revenue base. With these positive results, our operating income increased 82% to $3.1 million,” said president and CEO Marc Crossman.

“Our earlier commitment to introduce more fashion offerings, like printed denim and our ‘55 Colors,’ translated into growth. As we move into our third quarter with Fall and Back-to-School shopping, we are excited about our new product offerings with our wholesale partners and the expansion of our else brand with Macy’s.”