Apparel retailer J. Crew Group, Inc. (JCG) said Tuesday after the markets closed that its third quarter profit more than doubled from last year, helped by higher sales and improved margins. The company's quarterly earnings per share came in above analysts' as well as its own expectations.
The New York-based company reported net income for the third quarter of $43.9 million or $0.67 per share, compared to $19.0 million or $0.30 per share for the year-ago quarter.
On average, 23 analysts polled by Thomson Reuters expected the company to earn $0.58 per share for the third quarter.
Last month, J. Crew had raised its earnings guidance to a range of $0.54 to $0.59 per share from its earlier guidance of $0.30 to $0.33 per share to reflect stronger-than-anticipated sales and margin trends.
Gross margin for the quarter improved to 48.4% from 41.6% a year ago. Operating income increased to $75.2 million, or 18.2% of revenues, from $32.5 million, or 9.0% of revenues, in the third quarter of last year.
Total revenue for the third quarter rose 14% to $414.11 million from $363.08 million in the same quarter last year. Eighteen analysts had a consensus revenue estimate of $407.99 million for the third quarter.
Store sales for the quarter increased 20% year-over-year to $300.1 million, with same-store sales up 8%. Direct sales, through Internet and phone, rose by 4% to $105.5 million in the third quarter.
Millard Drexler, J. Crew's Chairman and CEO stated: "We are very pleased with our third quarter results. Regardless of the economic environment our long term mission does not change - it's about product, it's about quality, it's about design, it's about service, it's about creativity. It might sound simple, but in this business sometimes the simplest things are the hardest to achieve."
For the first nine months of its fiscal year, the company reported net income of $82.9 million or $1.29 per share, compared to $67.7 million or $1.06 per share for the same period last year.
Revenue for the nine-month period increased 7% to $1.12 billion from $1.04 billion in the prior year period.
Looking forward, the company said it expects fourth quarter earnings to be in the range of $0.37 to $0.42 per share. Analysts currently expect the company to earn $0.40 per share for the fourth quarter.
Among others in the industry, Gap Inc. (GPS) last week reported a 25% rise in third quarter profit, driven by higher margins and improved sales at its Old Navy stores.
J. Crew shares, which have traded in a range of $8.56 to $44.29 over the last year, closed Tuesday's regular trading session at $40.85, up 45 cents or 1.11%. The stock is currently gaining $3.05 or 7.47% in after hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.