J Crew hurt as margins drop

 
City A.M. Reporter
US CLOTHING chain J Crew has seen earnings fall 21 per cent as lower margins hurt revenue growth.

The chain, whose clothing is a favourite of President Barack Obama’s wife Michelle, reported a profit of $17.5m (£11.1m), down from $22m a year earlier. Revenue increased 6.4 per cent to $559.1m.

However, gross margin fell to 41.1 per cent from 45.1 per cent.

Retail sales grew 3.9 per cent to $399.1m, with direct sales up 13 per cent to $151.8m.