Article: ST. JOHN PROFIT DOWN 36.8% IN 1ST QUARTER.

NEW YORK -- St. John Knits, which is in the midst of going private after struggling to meet Wall Street's demands for growth, reported earnings for the first quarter ended Jan. 31 slid 36.8 percent as sales gained 6.7 percent.

Earnings for the three months amounted to $5.8 million, or 34 cents a share on a diluted basis, against $9.2 million, or 54 cents, a year earlier. Sales rose $73.4 million from $68.8 million.

Sales for the firm's retail group, which includes the company's 17 boutiques and nine outlet stores, rose 19.2 percent to $22.9 million from $19.2 million. Same-store sales for the retail boutiques rose 21 percent, St. John said.

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