St. John Knits Frayed Over Interest Costs

St. John Knits International Inc., Irvine designer of upscale women’s clothing and accessories, posted net income of $3.7 million, or 42 cents a share, for the fiscal first quarter, down 36% from $5.8 million, or 34 cents a share, for the year-earlier period. The company attributed the decline mostly to interest expenses of $8.2 million, primarily from the debt incurred to finance the company’s buyout in July by the founding Gray family and Vestar Capital Partners, a New York investment firm. Sales for the three months ended Jan. 30 increased 8% to $79.6 million.