Clothing retailer J. Crew Group posted a more-than-tripling of Q1 profit Thursday on strong sales and high margins. The company's shares climbed 7.7% to close at $44.87 and then tacked on another 4.2% to reach $46.75 in AH trading. Q1 net income came in at $24.6 million ($0.39/share), up from $4.4 million ($0.12) in the year-ago quarter. Total revenue surged 24% to $297.3 million on a 13% rise in same-store sales. (After adjusting for a shift in the retail calendar, comps were up 8%.) Analysts were expecting $0.30 EPS on sales of $271 million. Gross margin increased to 46.6% of revenue from 45.5% last year. J. Crew is forecasting same-store sales growth in the mid-single digits. The company has raised its full-year EPS guidance to the $1.37-1.41 range, up from $1.27-1.31. Analysts had been expecting $1.32. J. Crew is also forecasting Q2 EPS of $0.26-0.28, in line with Street forecasts of $0.28. The company has beat expectations in every quarter since its IPO last June.
Sources: Reuters (I, II), MarketWatch, TheStreet.com
Commentary: J. Crew Pre-Earnings Runup: Sagacious or Merely Sequacious? • Stocks To See You Through Current Inflation Levels • Gap's Identity Crisis vs. J. Crew's Smooth Sailing
Stocks/ETFs to watch: J. Crew Group, Inc. (JCG). Competitors: Gap Inc. (NYSE:GPS), Abercrombie & Fitch Co. (NYSE:ANF), AnnTaylor Stores Corp. (NYSE:ANN). ETFs: Retail HOLDRS ETF (NYSEARCA:RTH), SPDR S&P Retail (NYSEARCA:XRT), PowerShares Dynamic Retail (NYSEARCA:PMR)
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