New York City Crew Group Inc. on Thursday said fiscal first-quarter profit rose 24%, but lowered its full-year guidance amid a difficult retail environment.
Profit for the quarter ended May 3 rose to $30.5 million, compared with a profit of $24.6 million in the same quarter last year. Revenue rose 15% to $340.6 million from $297.3 million a year ago.
Same-store sales rose 2%, compared with an 8% rise last year.
During a conference call with analysts, company executives said same-store sales began to weaken late in the first quarter, and they expect the trend to continue for the balance of the year, as the retail sector in general struggles.
Company CEO Millard Drexler said the number of customers in stores is down and sales of shorts and T-shirts have been weak.
"We're in an environment that we thought it was prudent and wise to adjust our forecast," Drexler said during the conference call.