J. Crew profits fall 42% on costs, but sales up

New York -- J. Crew Group Inc. Monday afternoon reported a 42% decrease in its fiscal fourth-quarter profit amid higher costs. Net income fell to $5.92 million in the quarter, which ended Feb. 1., down from $10.2 million in the year-ago period.

Revenue increased 6.7% to $686.2 million. Retail store sales rose 5% to $438.6 million and direct sales jumped 10% to $238.1 million

Same-store sales, which includes direct sales, rose 3%. Excluding a calendar shift, comparable-store sales increased 4%.

Gross margin fell to 36.8% from 38.4%. Overhead costs rose 4.5%.

According to various reports, J. Crew is considering an initial public offering later this year. The retailer was acquired by TPG and Leonard Green and taken private in 2011.


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