J. Crew Group Inc., an operator of casual-clothing stores, had its first profit since former Gap Inc. chief Millard Drexler was hired as chief executive seven months ago.
It posted fiscal second-quarter net income of $15.2 million, contrasted with a net loss of $7.1 million a year earlier. Sales in the period ended Aug. 2 fell less than 1% to $167.1 million, the closely held firm said. Sales at stores open at least a year rose 2%.
New York-based J. Crew reduced catalog circulation to lower costs.
The company put slow-selling merchandise on clearance in outlets and on the Internet instead of carrying it over into the next season. J. Crew benefited from a pretax gain of $41.1 million on the exchange of debt.
Texas Pacific Group, an investment partnership, is the majority owner of J. Crew. Drexler also owns a stake.