J Crew Posts Lower Net Profit in Quarter

LOS ANGELES (Reuters) - J Crew Group Inc (JCG.N) on Tuesday posted adjusted earnings that beat Wall Street estimates, even while quarterly net profit fell due to a year-ago tax benefit.

The apparel retailer, which also has a catalog and online business, also gave a 2008 earnings forecast whose low end matched analysts' expectations. Its shares rose 3 percent in after-hours trade.

Net profit in J Crew's fourth quarter was $25 million, or 39 cents per share, compared with $44 million, or 71 cents per share, in the year-ago quarter that included a tax benefit.

Adjusted earnings were 41 cents per share, above the 39 cents expected by analysts, on average, according to Reuters Estimates.

Sales rose 9 percent in the quarter to $399.9 million, just below the $401.7 million Wall Street was expecting, while same-store sales were flat.

Gross profit margins increased in the quarter while expenses as a percent of revenues fell.

J Crew said it expects fiscal 2008 earnings per share to range between $1.85 and $1.87. Wall Street had been expecting earnings of $1.85, on average.

Shares of J Crew rose an additional $1.27 to $43.87 in after-hours trade after closing at $42.60, up 6.5 percent, on the New York Stock Exchange.

(Reporting by Alexandria Sage, editing by Leslie Gevirtz)