New York J. Crew Group on Thursday reported a drop in its first-quarter profit largely due to charges and margins, but the results topped Wall Street forecasts. The company earned $20.4 million, including the impact of severance and asset impairment charges, for the first quarter ended May 2, a drop from $30.5 million a year ago.
“While earnings were lower than last year, we did experience an improved trend in our business," chief executive Millard Drexler said in a statement. "We think it is clear that there is no choice in this environment than to continue to be creative and figure out where the customer is going, not to respond to where he or she has been."
The quarter’s income is an improvement from the fourth quarter, when the company posted a net loss of $13.5 million, which it blamed on lower holiday sales and non-cash asset impairment charges.
The company’s revenues for the quarter were $345.77 million, up 2% increase from $340.58 million for the same period last year. Same-store sales slipped 5%. It also opened 43 stores since the first fiscal quarter of 2008.
Looking ahead to the second quarter, the specialty retailer expects to see same-store sales to drop by single digits, according to a company statement.