US: J Crew Q2 profit slides on higher costs
- Q2 profit slump 38.3% to $10.8m
- Revenues increase 12% to $627.2m
- Comparable store sales up 4%
J Crew revenues increased 12% to $627.2m in the second quarter
Fashion retailer J Crew Group has seen its second-quarter profit slump 38.3% on the back of higher costs.
Net income amounted to US$10.8m for the three months to 2 August, compared to $17.5m in the same period of last year.
Revenues, however, increased 12% to $627.2m from $559.1m a year ago, while comparable store sales were up 4%. Store sales increased 11% to $443.5m and direct sales grew 14% to $173.6m.
Gross margin slipped to 37.7% from 41.1% in the prior year. Selling, general and administrative expenses increased 15.2% to $200.7m from $174.2m last year.
During the first six months of the year, the company swung to a net loss of $19.3m, compared to net income of $46.8m in the prior year period.
This, it said, reflects a loss of $36m, net of tax, incurred in connection with the refinancing of J Crew's term loan facility and the redemption of our senior notes.
First-half revenues increased 9% to $1.22bn and comparable store sales edged up 1%.
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