Thriving in the 13 billion dollar industry that premium denim jeans is in the US Market is a difficult status to achieve let alone just battling to stay above water. The denim industry alone is a cut throat business and only a small number of companies tend to stand out with a large share of the market. Guess, Inc. is ahead of everyone with a 2.62 billion dollar share of the industry. The second closest denim brand is Buckle, Inc. who has a 1.1 billion dollar share of the industry and in third comes True Religion Apparel, Inc. who made 450 million dollars in 2012. These companies have already made it big time in a difficult and saturated industry but what if we said there was another denim company slowly carving their own niche.
By improving their stock by 120% since last January, Joe’s Jeans (JOEZ) received a letter from NASDAQ stating that they have completely regained their compliance with all NASDAQ requirements, which is amazing to hear after trading at 53 cents almost a year ago. Now trading at $1.20, Joe’s Jeans is still a relatively new company and knows how to attract the crowd of premium denim jeans priced up around $200 and t-shirts priced at nearly $100. They even go beyond denim including chic lifestyle collections for men, women and kids. Founded in Los Angeles, Joe’s Jeans has a strong following of ‘popular celebrities’. Halle Berry, Eva Longoria, Jessica Alba, Jessica Simpson, and Angelina Jolie have all been seen strutting their Joe’s Jeans.
The brand loyalty is huge and if they keep playing their cards right they will continue to grow at a substantial rate. Two large contributors to their success is their contemporary, modern, chic and sexy appeal to consumers and their involvement with social media. Combine these two and you have a winning combination as we can see with Joe’s Jeans, who has one of the largest followings out of all premium denim jean brands in the industry. The fact that they were the first to offer “skinny jeans” is a huge bullet point to have on your credentials in the denim industry itself but they decided to take it one step further and offer 55 different colors of skinny jeans, which has been a trend for a while now so they obviously know what the people want.
It expects between 30.9 and 32.2 million dollars in sales during the course of 2013, which would bring total net sales for the year between 115.8 to 117.1 million. Projections are calling for 24.5 to 25.5 million wholesale and 6.4 to 6.7 million in retail for the fourth quarter of 2012. If these projected totals prove to be correct, Joe’s Jeans will be staring at double digit growth once again, climbing higher and higher within the premium denim jean market. If this rate continues they can easily become a larger player within the market in the coming years.