the increase is almost solely due to the acquisition of Hudson during the quarter which was financed by taking on a huge chunk of debt. So you have to look at the enterprise value rather than at the market cap. There's really nothing to cheer about the results - the business is still very weak especially on the women's and retail store side and management is still pretty intransparent about the Hudson acquisition
Excluding transaction expenses and the charge related to the acquired inventory, our operating income would have been $6.5 million, our net income would have been $2.4 million and our fully diluted earnings per share would have been $0.03 for the quarter. We refer you to our reconciliation of these non-GAAP financial measures at the end of this release.
So, now the aquisition should be completed and next quarter we see also Hudson 3 month sales and I dont see any reason why we should not see profitable quarter. There could be also some effect in production shifting to Mexico. If we see good quarter the attitude towards Joez should get positive.