St. John Knits Posts Loss of $3.9 Million After Buyout

St. John Knits International Inc. posted a third-quarter loss of $3.9 million, or 29 cents a share, as it took a hefty charge stemming from the founding Gray family’s move to buy the upscale women’s clothier.

The loss included a one-time charge of nearly $8.9 million, or 64 cents a share, for expenses related to the buyout of the Irvine company.

A year ago, St. John earned $7.3 million, or 43 cents a share,

Sales, which rose 4% to $70.3 million, were hurt by the company’s move to discontinue its less expensive SJK line, which was launched two years ago to appeal to younger customers, and the closing of three home furnishings stores.

Sales rose 6% at stores open at least a year,

The company said that despite its improving performance, it did not expect to meet its fiscal 1999 projections. In fiscal 1998, the company earned $33.4 million, or $1.94 a share, on sales of $282 million.