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SAFE HARBOR STATEMENT
Certain statements made in this presentation by Joe’s Jeans Inc. and its affiliates, including Joe’s Jeans Subsidiary Inc. (collectively, the “Company”) are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon information available to the Company as of the date of this presentation and the Company undertakes no obligation to update these statements after the date of this presentation. Readers are cautioned not to place undue reliance on forward-looking statements. Any forward-looking statement inherently involves risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to: continued acceptance of the Company's products in the marketplace; future acceptance in the marketplace of new product offerings by the Company; the ability to generate positive cash flow from operations; and the ability to achieve gross margin targets and profitability. Additional information concerning factors that could cause actual results to differ materially from those in the “forward looking statements” is contained in the Company's periodic report filings with the Securities and Exchange Commission Copies of these reports may be obtained by contacting the Company or the SEC.
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Corporate: Joe’s Jeans Inc.
Business: Solely Joe’s Jeans – Launched 2001Premium Denim & Lifestyle Collection
Headquarters: Los Angeles, California
Symbol: JOEZ (Nasdaq)
2006 Sales: $46 Million
2007E Sales: $60 Million
Share Price: $0.99 as of 1/15/08
Market Cap: $59.1M as of 1/15/08
INVESTOR QUICK FACTS
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Acquired Joe’s® Brand from Namesake Owner Joe Dahan
Announced First Category License ~ Handbags & Belts
Dissolved Foreign Distribution Partnership and Opened Paris-based European Operation
Announced New Distribution Deal in Japan
Strengthened Balance Sheet through Equity Raises
Returned to Profitability in Second and Third Quarters
Continue to Develop Base of Loyal Customers
2007 ACHIEVEMENTS
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The WWD ListAll Caught up in Blue
The Top 12 Denim Brands Ranked By Customer Loyalty
Levi’sJoe’s JeansTrue Religion
WranglerTommy Hilfiger
DieselGuess
Rock & RepublicSeven for All Mankind
GapEvisuLucky
123456789
101112
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A Full Lifestyle Brand
Full CollectionWomen’sMen’sKid’s
AccessoriesBelts & Handbags
Continue to Grow Department Store Business
Further Penetrate Specialty Stores in Middle America & Other Less Distributed Areas
Expand Men’s Distribution
Re-energize International Business
Launch Retail Expansion
OUR VISION
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WOMEN’S
DENIM
8 Core Fits - Base Price Point $158Most Popular
Honey – Voluptuous PhysiqueProvocateur – Shorter Inseam, Petite FitMuse – Higher Waist, Sophisticated Fit
ROCKER TWIGGYSTARLET
HONEY PROVOCATEURLOVER
SOCIALITE
MUSETrend Driven Fits Seasonal - Price Point $158 - $275
Cigarette – Straight LegChelsea – Super SkinnyGatsby – Wide Leg MuseStardust – Super Flare Rocker
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WOMEN’S
COLLECTION
Offering Full-Breadth of ProductJackets ~ $189 to $750 Sweaters ~ $180 to $298 Knit & Woven Tops ~ $72 to $189
License Non-Core Categories
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MEN’S
Introduced Spring 2006
Launched as a Full CollectionJackets ~ $189 to $750 Sweaters ~ $129 to $289 Knits & Woven Tops ~ $54 to $178
Strong Denim Base with 4 Basic Fits$158 to $189
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NET SALES (YEAR over YEAR)
2004 2005 2006 2007E20032002
$9
2001$0$5
$10$15$20$25$30$35$40$45
$55$50
$60
$11
$18
$33
$45
$60E
350%22%
64%
83%
36%
33%
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GROSS MARGINS
(YEAR over YEAR)
32%
37%
42%
2005 2006 2007E
Steady Improvement in Gross Margins Since 2005
Production Shift Outside of U.S. ~ Key Factor of Increase in Gross Margins
Continue to Improve in 2008
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BALANCE SHEET
HIGHLIGHTS
Raised $5.6 Million in Fiscal 2007
No Long-Term Debt
Increased Credit Lines with CIT
Plan to Fund Growth with Existing Bank Lines
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Int.19%
U.S.81%
Int.8%
U.S.92%
WHOLESALE MIX
2005 2006 2007E
Int.4%
U.S.96%
Business Today is Predominately U.S. Wholesale.
U.S. vs. INTERNATIONAL
Upside ~ Opportunity in International Market to Expand the Joe’s® Brand
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SP67%
Dept33%
SP64%
Dept36%
U.S. WHOLESALE
WOMEN’S
MIX 2005 2006 2007E
SP59%
Dept41%
*Gross Percentage
Department Store v. Specialty Store Mix
Specialty Stores are Core Base
Department Stores ~Fastest Growing Segment
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U.S. WHOLESALE
WOMEN’S SALES
Mill
ions
Core of Joe’s Business
Continued Growth in 2008
47%
35%
NET SALES
Note: Percentages represent year-over-year growth
$27.0
$39.6
$53.6
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2005 2006 2007E
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Specialty Stores:Fred SegalLisa Kline American RagM. FredricBlue BeeE Street Denim AnthropologieAtrium ScoopBarney’s New YorkBendel’sBergdorf Goodman
Fred Segal
Lisa Kline
American Rag
M. Fredric
Blue Bee
E Street Denim
Bergdorf’s Barney’s
Bendel’s Atrium
Lord & Taylor
Scoop
Anthropologie
Department Stores:Neiman MarcusNordstromSak’s Fifth AvenueBloomingdale’sMacy’s
WestNorth WestSouthNorthFlorida
Von MauerBelkLord & Taylor
Nordstrom
Von Mauer
Neiman Marcus
Sak’s Fifth Avenue
Bloomingdale’s
Macy’s
U.S. WHOLESALE
WOMEN’S
DISTRIBUTION
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U.S. WHOLESALE
WOMEN’S DEPARTMENT
STORES
DOOR GROWTH*
*Based on Average Doors per Year
Opened Neiman Marcus in 2007~ Rolled to All 38 Doors in Fall
Organic Growth with Existing Partners
311
249212
050
100150200250300350
2005 2006 2007E
17%
25%
Note: Percentages represent year-over-year growth
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U.S. WHOLESALE
WOMEN’S DEPARTMENT
STORES
SALES PER DOOR
*Based on Average Doors per Year
Attributable to Rollout of Core Basic Program
Increasing Inventories Based on Our Strong Retail Performance
$42.0
$57.0
$71.0
$0.0$10.0$20.0$30.0$40.0$50.0$60.0$70.0$80.0
2005 2006 2007E
Thou
sand
s 36%
23%
Note: Percentages represent year-over-year growth
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NORDSTROM – SAVVY DEPT #2
VON MAUR #2
MACY’S #3
BLOOMINGDALE’S #4
SAKS #5
RANKINGS
KEY DEPARTMENT STORE ACCOUNTS
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U.S. WHOLESALE
WOMEN’S SPECIALTY
STORES
ACCOUNT GROWTH
Maintaining Solid Specialty Store Base
Strategic Focus on Mid-America for 2008
*Based on Average Doors per Year
Acc
ount
s
Note: Percentages represent year-over-year growth
1,0191,0751,040
0
250
500
750
1000
1250
2005 2006 2007E
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U.S. WHOLESALE
WOMEN’S SPECIALTY
STORES
AVERAGE SALES PER ACCOUNT
Growth Primarily Driven by Anthropologie
Increased Penetration w/ High-Profile Accounts
$17.0
$24.0
$31.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2005 2006 2007E
Thou
sand
s
36%
32%
Note: Percentages represent year-over-year growth
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U.S. WHOLESALE
MEN'S
Launched in Spring 2006
Expected to be Growth Driver in 2008
Sales Mix ~ 55% Department vs. 45% Specialty
(US$ in millions)2006 2007E % Growth
Net Sales $2.2 $4.0 81.8%
Doors - Dept. (Year-end) 59 130 120.3%
Average Sales per Door - Dept. $13.0 $17.0 30.8%
# Accounts - SR 190 211 11.1%
Average Sales per Account - SR $8.0 $8.0 0.0%
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Specialty Stores:Fred SegalLisa Kline Men’sAmerican RagM. FredricE Street Denim Atrium ScoopNational Jeans CompanyBergdorf Goodman
Fred Segal
Lisa Kline Men’s
American Rag
M. Fredric
E Street Denim Lord & Taylor
Scoop
Department Stores:NordstromSak’s Fifth AvenueMacy’s
NorthWest
Bloomingdale’sBelk’sLord & Taylor
Nordstrom Sak’s Fifth Avenue
Bloomingdale’s
U.S. WHOLESALE
MEN’S
DISTRIBUTION
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U.S. WHOLESALE
KID’S
Introduced Spring 2006
Estimated Sales for 2007 of $1 Million95% Denim Bottoms5% Non-Denim
Brought License Back In-House with Acquisition of the Brand
Specialty 80%
Department 20%
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Specialty Stores:Fred SegalLisa Kline Kid’sKitson Kid’sM. FredricScoop
KID’S
U.S. DISTRIBUTION
Fred Segal
Lisa Kline Kid’s
Kitson Kid’s
M. Fredric
Scoop
Department Stores:Macy’sBloomingdalesNeiman MarcusNordstrom
Neiman Marcus
Bloomingdale’sMacy’s
Nordstrom
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INTERNATIONAL
SALES
NET SALES
Declining Since 2005
Terminated Master Distribution Agreement in February 2007
Re-aligned in 2007 for Growth in Back Half of 2008
$6.2
$3.4
$2.4
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2005 2006 2007E
Mill
ions
(45%)
(29%)
Note: Percentages represent year-over-year growth
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INTERNATIONAL
DISTRIBUTION MIX
Europe
Japan
Canada U.K.
E40%
J49%
C/B11%
E28%
C12%
B10%
J50%
2005
J38%
E20%
C34%
B8%
2006 2007(6mo)
SALES MIX BY KEY REGIONS
LEGEND
E = Europe
J = Japan
C = Canada
B = Balance
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Canada: Continued Steadfast Growth Moving into 2008
Japan:
Signed New Distribution Deal with Itochu in June 2007
Switching Sub-Distributor starting Spring 2008
Europe:Operation now In-House
Distribution Directly out of Belgium
Taking Advantage of Duty Free betweenMexico and Europe
Taking Advantage of Strong Euro & Reducing Price Points to Drive Volume
Recently Signed Agents & Distributors in All Major Territories
INTERNATIONAL
BUSINESS
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Hired New Vice President of Retail ~ Veteran of Lucky Brand Jeans® Retail Rollout
Recently Hired Merchandiser, Planner & Buyer
Two Outlet Stores Planned for 2008:
Woodbury Common Premium Outlets – Central Valley, New York: 50 miles North of New York City.
Orlando Premium Outlets –Orlando, Florida: 2 miles from Walt Disney World.
Evaluating Location Options for Up to 2 Regular Priced Stores in 2008
RETAIL
STRATEGY