J. Crew first-quarter profit falls 4.6%

J. Crew’s first-quarter profit fell 4.6% after increased costs offset higher revenues.

Net income stood at $29.3 million for the three months to May 4, compared to $30.7 million in the same period last year.

Revenues increased 12% to $564.1 million from $503.5 million the prior year, and comparable sales rose 5%. Store sales were up 7% to $380.2 million, while direct sales jumped 23% to $176.2 million.
Gross margin fell to 44.7% against 47.6% the prior year.

Selling, general and administrative expenses, however, increased 8.6% to $178.4 million against $164.2 million the year before.

Hopefully the new fall collection will be an improvement for them!