(Filed Under Financial and General Interest News). J. Crew Group, Inc. reported that its profit for the third quarter of 2011 fell 43 percent from 2010 due to higher interest expense and operating costs.
Net income declined to $21.6 million from $37.8 million in the year-ago period. Sales improved, with net revenue increasing 12 percent to $479.6 million from $429.3 million. Same-store sales rose 2 percent, while direct sales from the company’s website and catalogs grew 18 percent.
The fall in profit can be attributed to the company’s 17 percent increase in selling, administrative and general costs to $14.9 million, while debt incurred by its March acquisition by private equity firms made interest expense leap to $25.3 million from $2.1 million in 2010.
New York-based J. Crew currently operates 269 retail locations as well as 96 factory outlets across the United States.
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