J Crew profit jumps, revenue up 14 percent
J Crew Group Inc
The company's shares rose 5 percent in after-hours trading.
Third-quarter net income rose 131 percent to $43.9 million, or 67 cents per share from $19 million, or 30 cents per share, a year earlier.
Analysts, on average, had been expecting earnings of 58 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 14 percent to $414.1 million while same-store sales -- a key gauge of retail performance that measures sales at stores open at least a year -- jumped 8 percent.
Sales at the company have been robust during the fall season as shoppers with some disposable income have sought out updates to their wardrobes. The company -- which earlier this year struggled with too-high inventory levels that pressured margins -- attributes its sales strength to what it calls unique, differentiated merchandise.
Operating profit margins rose to 18.2 percent of revenues from 9 percent of revenues a year earlier.
Looking ahead, J Crew said it expects fourth-quarter earnings per share to range between 37 cents to 42 cents.
Shares rose 5 percent to $42.90 after hours, after closing at $40.85 on the New York Stock Exchange.
(Reporting by Alexandria Sage; editing by Carol Bishopric)
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