J. Crew Group 2Q profit up, beats expectations

NEW YORK (AP) — Clothing retailer J. Crew Group Inc. said Thursday reported much better second-quarter earnings than analysts expected and slightly better profit compared with a year earlier as markdowns led customers to buy more online and in stores.

The company earned $18.6 million, or 29 cents per share, compared with $18.1 million, or 28 cents per share, in the second quarter last year.

Its operating income increased 2 percent to $32.2 million from $31.5 million. Operating income in the second quarter this year includes charges of about $2.6 million related to underperforming stores and lease terminations. Operating income in the second quarter last year included about $3 million in costs related to problems with a Web site upgrade.

Revenue rose 6 percent to $357.6 million.

Analysts polled by Thomson Reuters expected a profit of 15 cents per share on $346.9 million in sales.

The company expects to earn between 30 cent and 33 cents per share in its third quarter. Analysts predict earnings of 30 cents per share.

J. Crew's shares rose 3 percent, or 99 cents, to $33.75 in after-hours trading. The stock ended the regular trading session up a penny at $32.76.