Home / Knowledge / News / Fashion / J. Crew beats expectations
J. Crew beats expectations
28
Aug '09
J. Crew Group, Inc. announced financial results for the three months (second quarter) and six months (first six months) ended August 1, 2009.

Second Quarter highlights:
-- Revenues increased 6% to $357.6 million. Store sales(Retail and Factory) increased 7% to $259.1 million, with comparable store sales decreasing 5%. Comparable store sales decreased 0.4% in the second quarter of fiscal 2008. Direct sales (Internet and Phone) increased by 6% to $88.2 million. Direct sales increased 12% to $83.2 million in the second quarter of fiscal 2008.

-- Gross margin increased to 41.2% of revenues from 41.0% of revenues in the second quarter of fiscal 2008.

-- Operating income increased 2% to $32.2 million, or 9.0% of revenues, compared to $31.5 million, or 9.4% of revenues, in the second quarter of fiscal 2008. Operating income in the second quarter of fiscal 2009 includes charges of approximately $2.6 million related to underperforming stores and lease termination actions. Operating income in the second quarter of fiscal 2008 included approximately $3.0 million of costs related to our Direct channel systems upgrades.

-- Net income was $18.6 million, or $0.29 per diluted share, compared to a net income of $18.1 million, or $0.28 per diluted share, in the second quarter of fiscal 2008.

Millard Drexler, J. Crew's Chairman and CEO stated: "We are and have been on a long term mission to be recognized for our quality, style, design and service. This mission puts 'taking care of our customers' front and center in every part of our business -- our products, our service, our store environments and our web site. While we are pleased with our second quarter results, we always have our eye on where our customer is headed and the need to constantly challenge ourselves to be creative and innovative."

First Six Months highlights:
-- Revenues increased 4% to $703.3 million. Store sales increased 6% to $499.8 million, with comparable store sales decreasing 5%. Comparable store sales increased 1% in the first six months of fiscal 2008. Direct sales decreased 0.3% to $183.5 million. Direct sales increased 14% to $184.1 million in the first six months of fiscal 2008.

-- Gross margin decreased to 41.7% of revenues from 44.0% of revenues in the first six months of fiscal 2008. The decrease in gross margin is primarily related to increased markdowns as a result of beginning of fiscal year inventory levels.

-- Operating income decreased 20% to $67.5 million, or 9.6% of revenues, compared to $84.6 million, or 12.5% of revenues, in the first six months of fiscal 2008.Operating income in the first six months of fiscal 2009 includes charges of approximately $4.9 million related to our workforce reduction, underperforming stores and lease termination actions.Operating income in the first six months of fiscal 2008 included approximately $3.0 million of costs related to our Direct channel systems upgrades.


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search