J. Crew Q4 sales up, but profit drops

Although fourth-quarter sales at J. Crew increased, the retailer saw profit drop 42% in the quarter amid higher costs.



Net income fell to $5.92 million in the quarter, 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 include direct sales, increased 3%. Excluding a calendar shift, comparable-store sales increased 4%.



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