J.Crew blames higher operating costs, lower mall traffic for Q4 drop

J.Crew Monday afternoon reported a 42 percent decrease in its fiscal fourth-quarter profit amid higher costs and lower mall traffic. J.Crew is working to bounce back from an industry slump that hurt holiday sales and triggered a wave of discounting among rival retailers. At the same time, the company is contemplating an initial public offering for later this year, according to people familiar with the matter. Story