Highlights of Earnings
- Revenues at ENZO retail division exceed $50M milestone in 2009, rising 56% for fourth quarter and 39% for fiscal year
- Fully diluted EPS rises 50% for fourth quarter and 36% for year Comparable store sales rise 19% in fourth quarter and 25% in year
- Balance sheet remains strong, with cash and cash equivalents of $11.3M as of Dec. 31, 2009 and $2.3M in long-term debt
- Company sees wholesale revenues stabilizing as recovery continues
- Provides positive revenue and earnings guidance for first quarter 2010
The company‘s success was greatly due to their ENZO retail division which is slowly growing but quickly becoming their most profitable sector. In previous years ENZO was barely a fourth of total revenues now it is making up half, and its projected next year that it will take over wholesale as the main source of revenue.
More competitors are popping up across China, however, JADE being the first mover and having years of experience under its belt remains the top player in China.
One investor commented on how slowly the retail stores have been growing considering how profitable they are. Yu Chuan Yih, Chairman and CEO, responded by saying the company is focusing on improving productivity on current stores before expanding too quickly. However, they do have their sights on growth for this year and next, they estimate that 100 new stores will be opened by the end of 2011.
This is an interesting company going forward; China remains a huge area for growth and profits and this is the main reason JADE did so well this year. Sales in China nearly matched sales coming from the U.S., Canada, Europe and Japan combined.
Guidance for 1st quarter 2010 was given: Total revenues and ENZO revenues are expected to increase 15%, and 40% respectively from 1st quarter 2009.
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