Differential Brands, owner of Hudson Jeans and Robert Graham, reported significant financial losses for Q1 2016 as the company goes through a transitional period, concluding the merger with Robert Graham and getting rid of the last Joe’s Jeans stores.
The company reported an adjusted operating income of $2.4 million, excluding transaction expenses associated with the merger and retail store closure expenses.
The operating expenses for the quarter were $23.4 million compared to $11.2 million in the prior year. This expense includes approximately $5.5 million in transaction expenses associated with the merger, expenses related to the continued operation of Joe’s branded retail stores and expenses related to the lease termination for one Robert Graham store.
As a result, Differential Brands had a diluted loss per share of $0.52 in the first quarter, compared to earnings per share of $0.06 in the same period last year.
The company posted first quarter net sales of $34.9 million, compared to $18.9 million in the prior year.
Michael Buckley, Differential Brands CEO, commented, “With the completion of the merger, our focus has shifted to executing on our omni-channel vision for the company and creating the playbook for future acquisitions.”
Buckley continued, “With the strength of our brands under the Differential umbrella and the addition of a seasoned merchant to our roster, we believe that we are well positioned for organic growth in the back half of 2016.”