After Joe's Jeans acquired Hudson Jeans, the Los Angeles premium-jeans maker, company has decided to relocate its production unit to Mexico from the US. Joe’s Jeans manufactures all its pants in Mexico to reduce production costs by about 20 to 35 per cent.
Announcing its first quarter financial results, Hamish Sandhu, Chief Financial Officer for Joe’s Jeans said that production in Mexico is expected to start during fall this year. The company believes that there is a huge opportunity in Mexico to reduce the cost per garment on the Hudson side of the business.
For the first quarter, the newly combined Joe’s Jeans showed a minor fiscal net loss and a boost in sales, both attributed to its acquisition of Hudson Clothing Holdings completed on September 30. For the first quarter ended February 28, Joe’s Jeans reported a net loss of $2.2 million compared with a net loss of $6.4 million for the same period a year earlier. The net loss was affected by charges and other costs related to the acquisition. Sales rose 61 per cent to $47.3 million. Hudson wholesale net sales stood at $17.3 million.
