Privately held St. John Knits International Inc. provided a peek into its operations Wednesday,the results weren’t so hot.
The maker of high-end clothing reported a 3.6% decline in sales to $103 million for the three months ended Jan. 30. Net income fell 18% to $5 million.
The company’s quarterly sales were hurt by several factors. Revenue at its retail outlet stores declined, in part because St. John postponed its popular annual warehouse sale from November to February. It also lost sales to Saks, which closed 11 stores during the quarter.
Net sales for company-owned retail boutiques open at least one year decreased by 2.3% in the first quarter, versus a year earlier.
A bright spot: International sales grew by about $1.5 million, primarily due to higher sales to wholesale customers in Europe and an expansion in Hong Kong and Japan.
St. John is required to report some financial results because it holds publicly traded debt. In a February filing with the Securities and Exchange Commission, the women’s clothing designer said it is negotiating to refinance its debt. The move is designed to retire company debt due in 2009.
When the refinancing wraps up, St. John said it plans to stop reporting financial results to the SEC. The company plans to use cash generated from its refinancing to buy up to $13.5 million of shares from the Gray family.
The Grays,retired patriarch Robert, wife Marie, St. John’s chief designer, and daughter Kelly, who serves as creative director and model,have been a big part of the company’s identity since its 1962 founding.
St. John Chief Executive Richard Cohen has made a number of management moves since taking over in August. Most recently, St. John’s chief operating officer and former chief executive, Bruce Fetter, said he planned to step down.
New York-based Vestar Capital Partners is St. John’s majority owner.
