J Crew’s profits slipped 8% last year despite revenues rising amid promotional activity across the industry and reduced shopping centre footfall.
Net income at the US retailer was $88.1m (£53.29m) compared with $96.1m (£58.13m) last year, as turnover increased 9% to $2.43bn (£1.47bn) in the year to February 1. Store sales rose 6% to $1.64bn (£992m).
In its fourth quarter, net income tumbled 42% to $5.9m (£3.6m). However, revenues increased 7% to $686.2m (£415.2m) with like-for-like sales growing 3%. The company delivered robust online sales growth online as sales grew 16% to $755.9m (£457.2m).
Chief financial officer Stuart Haselden said the fourth quarter was “a challenging operating environment across the industry”.
He added: “I would point to a few factors: traffic, the promotional activity across the industry and weather.”
The chain, which owns 266 stores, also announced it will be opening 20 J Crew stores across the globe this year. These will include two in London, four in Canada and two in Hong Kong.
Earlier this month there was speculation over the future ownership of J Crew, with Uniqlo parent company Fast Retailing reported to be in talks about buying the business.