Can Joe’s Jeans (JOEZ) Get Its Earnings Back in the Black?

The big change for Joe’s Jeans, though, will come from the private-equity buyout of rival True Religion Apparel, Inc. (NASDAQ:TRLG). With private equity firm TowerBrook finding True Religion Apparel, Inc. (NASDAQ:TRLG)’s loyal customer following and established brand to be valuable assets, Joe’s needs to plan for heightened competition as TowerBrook seeks to make the most of its investment. Moreover, with True Religion’s situation in flux, The Buckle, Inc. (NYSE:BKE), which has also tried to capitalize on the high-end jeans business, has a new chance to try to capture some of True Religion’s customers during the transition. Yet, The Buckle, Inc. (NYSE:BKE)’s weak performance during its most recent quarter shows that the door might still be open for smaller competitors like Joe’s Jeans to make its own play for True Religion customers.

In its earnings report, watch for Joe’s Jeans to comment on how lower-cost jeans offerings at Macy’s, Inc. (NYSE:M) are faring. Originally announced early last year, the move is a dangerous one for Joe’s, as it has the potential to water down its premium reputation. At the same time, by opening a new audience for the company, it could also attract sales for its full-priced lines. If that’s happening, then it’ll be clear that Joe’s Jeans has the potential to produce substantial growth in the future.

The article Can Joe’s Jeans Get Its Earnings Back in the Black? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends The Buckle. The Motley Fool owns shares of The Buckle.

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