St. John Knits International Inc.

The Irvine designer and manufacturer of upscale women’s clothing said net income for the fourth quarter fell 37% to $4.5 million, or 53 cents a share, from $7.1 million, or 42 cents a share on a larger number of shares outstanding, a year earlier. Sales for the quarter ended Oct. 31 rose 3% to $78.3 million.

Net income for the fiscal year totaled $14.7 million, or 98 cents a share, down from $33.4 million, or $1.94 a share, for the prior year. The company said it incurred $15.1 million in one-time transaction fees and expenses in connection with its buyout in July of the founding Gray family and Vestar Capital Partners, a New York investment firm.

In addition, the company recorded interest expenses of $8.2 million in the fourth quarter and $10.2 million for the full year, primarily as a result of taking on debt to finance the buyout. Sales increased 6% to $300.3 million.