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News Release

J. Crew Group, Inc. Announces Third Quarter Fiscal 2009 Results

Third Quarter Revenues Rise 14% to $414.1 million
Third Quarter Diluted EPS of $0.67

NEW YORK, Nov. 24 /PRNewswire-FirstCall/ -- J. Crew Group, Inc. (NYSE: JCG) today announced financial results for the three months (third quarter) and nine months (first nine months) ended October 31, 2009.

Third Quarter highlights:

    --  Revenues increased 14% to $414.1 million.  Store sales increased 20% to
        $300.1 million, with comparable store sales increasing 8%.  Comparable
        store sales decreased 3% in the third quarter of fiscal 2008.  Direct
        sales (Internet and Phone) rose by 4% to $105.5 million.  Direct sales
        increased 13% to $101.8 million in the third quarter of fiscal 2008.
    --  Gross margin increased to 48.4% of revenues from 41.6% of revenues in
        the third quarter of fiscal 2008.
    --  Operating income increased to $75.2 million, or 18.2% of revenues,
        compared to $32.5 million, or 9.0% of revenues, in the third quarter of
        fiscal 2008.
    --  Net income was $43.9 million, or $0.67 per diluted share, compared to a
        net income of $19.0 million, or $0.30 per diluted share, in the third
        quarter of fiscal 2008.

Millard Drexler, J. Crew's Chairman and CEO stated: "We are very pleased with our third quarter results. Regardless of the economic environment our long term mission does not change - it's about product, it's about quality, it's about design, it's about service, it's about creativity. It might sound simple, but in this business sometimes the simplest things are the hardest to achieve."

First Nine Months highlights:

    --  Revenues increased 7% to $1,117.4 million.  Store sales increased 11% to
        $799.9 million, with comparable store sales decreasing 0.4%.  Comparable
        store sales decreased 0.4% in the first nine months of fiscal 2008.
        Direct sales rose by 1% to $289.0 million.  Direct sales increased 14%
        to $285.9 million in the first nine months of fiscal 2008.
    --  Gross margin increased to 44.2% of revenues from 43.1% of revenues in
        the first nine months of fiscal 2008.
    --  Operating income increased 22% to $142.7 million, or 12.8% of revenues,
        compared to $117.1 million, or 11.3% of revenues, in the first nine
        months of fiscal 2008.  Operating income in the first nine months of
        fiscal 2009 includes charges of approximately $5.3 million related to
        our workforce reduction, underperforming stores and lease termination
        actions.
    --  Net income was $82.9 million, or $1.29 per diluted share, compared to a
        net income of $67.7 million, or $1.06 per diluted share, in the first
        nine months of fiscal 2008.

Balance Sheet highlights as of October 31, 2009:

    --  Cash and cash equivalents were $246.8 million at the end of the third
        quarter compared to $114.5 million at the end of the third quarter of
        fiscal 2008.
    --  Inventories at the end of the quarter were $223.9 million, compared to
        $250.1 million at the end of the third quarter of fiscal 2008.
        Inventory per square foot at the end of the quarter decreased 17%
        compared to the end of the third quarter of fiscal 2008.

Guidance

The Company currently expects fourth quarter fiscal 2009 diluted earnings per share in the range of $0.37 to $0.42.

Conference Call Information

A conference call to discuss third quarter results is scheduled for today, November 24, 2009, at 4:30 PM Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-0784 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at www.jcrew.com. A replay of this call will be available until November 30, 2009 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 337405.

About J. Crew Group, Inc.

J. Crew Group, Inc. is a nationally recognized multi-channel retailer of women's, men's and children's apparel, shoes and accessories. As of November 24, 2009, the Company operates 243 retail stores (including 217 J. Crew retail stores, 9 crewcuts and 17 Madewell stores), the J. Crew catalog business, jcrew.com, and 78 factory outlet stores. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company's website www.jcrew.com.

ForwardLooking Statements:

Certain statements herein are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending or preferences in apparel, our ability to compete with other retailers, the performance of the Company's products within the prevailing retail environment, our strategy and expansion plans, systems upgrades, reliance on key personnel, trade restrictions, political or financial instability in countries where the Company's goods are manufactured, postal rate increases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company's Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.


                                                 Exhibit (1)

               J. Crew Group, Inc.
 Condensed Consolidated Statements of Operations
                   (Unaudited)

(Amounts in
 thousands,
 except
 percentages
 and per
 share           Three Months  Three Months   Nine Months   Nine Months
 data)               Ended         Ended         Ended         Ended
                 October 31,    November 1,   October 31,   November 1,
-----------          2009           2008          2009          2008
                 -----------    -----------   -----------   -----------

Net sales
     Stores          $300,066       $250,870      $799,871      $722,259
     Direct           105,480        101,812       289,012       285,958
                      -------        -------       -------       -------
                      405,546        352,682     1,088,883     1,008,217
Other                   8,563         10,398        28,551        31,716
                        -----         ------        ------        ------
Total
 Revenues             414,109        363,080     1,117,434     1,039,933

Costs of
 goods
 sold,
 buying and
 occupancy
 costs                213,682        212,212       623,844       591,447
                      -------        -------       -------       -------
Gross
 Profit               200,427        150,868       493,590       448,486
     As a
      percent of
      revenues           48.4%          41.6%         44.2%         43.1%

Selling,
 general
 administrative
 expenses             125,241        118,321       350,924       331,360
     As a
      percent of
      revenues           30.2%          32.6%         31.4%         31.9%
                         ----           ----          ----          ----
Operating
 income                75,186         32,547       142,666       117,126
     As a
      percent of
      revenues           18.2%           9.0%         12.8%         11.3%
                         ----            ---          ----          ----

Interest
 expense,
 net                    1,052            570         3,207         4,370
                        -----            ---         -----         -----

Income
 before
 income
 taxes                 74,134         31,977       139,459       112,756

Provision
 for income
 taxes                 30,265         12,936        56,535        45,091
                       ------         ------        ------        ------

Net income            $43,869        $19,041       $82,924       $67,665
                      =======        =======       =======       =======

Income per
 share:
     Basic              $0.70          $0.31         $1.33         $1.10
     Diluted            $0.67          $0.30         $1.29         $1.06

Weighted
 average
 shares
 outstanding:
     Basic             62,775         61,878        62,406        61,588
     Diluted           65,223         64,078        64,317        64,127


                                       Exhibit (2)

          J. Crew Group, Inc.
 Condensed Consolidated Balance Sheets
              (Unaudited)

                               October 31,  January 31,  November 1,
(In thousands)                    2009          2009         2008
--------------                -----------   -----------  -----------

Assets
Current assets:
   Cash and cash equivalents       $246,785     $146,430     $114,456
   Inventories                      223,894      187,044      250,140
   Prepaid expenses and other
    current assets                   30,027       34,926       36,240
   Income taxes receivable                -       23,116        6,918
                                        ---       ------        -----
Total current assets                500,706      391,516      407,754

Property and equipment, net         198,086      201,675      198,032

Other assets                         19,683       20,618       31,302
                                     ------       ------       ------
Total assets                       $718,475     $613,809     $637,088
                                   ========     ========     ========



Liabilities and
 Stockholders' equity
Current liabilities:
   Accounts payable                $117,823     $119,719     $134,576
   Other current liabilities         92,022       83,889       84,415
   Current portion of long-
    term debt                         1,028          800            -
   Deferred income taxes, net         4,049        4,049            -
                                      -----        -----          ---
Total current liabilities           214,922      208,457      218,991

Long-term debt                       98,458       99,200      100,000

Deferred credits                     69,015       73,815       74,378

Other liabilities                     6,817        7,388        7,654

Stockholders' equity                329,263      224,949      236,065
                                    -------      -------      -------
Total liabilities and
 stockholders' equity              $718,475     $613,809     $637,088



                                                              Exhibit (3)

Actual and Projected Store Count and Square Footage*



 Fiscal 2009
                 Total stores    Number of     Number of
                   open at        stores     stores closed   Total stores
                 beginning of  opened during    during       open at end
Quarter          the quarter   the quarter    the quarter   of the quarter
-------          ------------  ------------- -------------  --------------
1st Quarter
 (Actual)                300            12           2              310
2nd Quarter
 (Actual)                310             9           0              319
3rd Quarter
 (Actual)                319             2           1              320
4th Quarter
 (Projected)             320             1           0              321
-----------------        ---           ---         ---              ---





 Fiscal 2009
                                              Reduction of
                               Gross square   gross square
                                 feet for      feet for
                 Total gross      stores        stores
                 square feet     opened or     closed or    Total gross
                 at beginning    expanded      downsized    square feet
                   of the       during the     during the    at end of
Quarter            quarter        quarter       quarter     the quarter
-------          ------------  ------------   ------------  -----------
1st Quarter
 (Actual)         1,864,133       52,185         (8,258)     1,908,060
2nd Quarter
 (Actual)         1,908,060       38,166              0      1,946,226
3rd Quarter
 (Actual)         1,946,226       10,274         (2,872)     1,953,628
4th Quarter
 (Projected)      1,953,628        4,512              0      1,958,140
------------      ---------        -----            ---      ---------



* Above store count and square footage summary excludes three
clearance store locations.  One clearance store location was opened
during the third quarter of Fiscal 2009.

SOURCE J. Crew Group, Inc.

James S. Scully, Chief Administrative Officer and Chief Financial Officer, +1-212-209-8040, Investor Contacts, Allison Malkin, Chad Jacobs, Joe Teklits, all of ICR, Inc., +1-203-682-8200

Certain statements herein are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending or preferences in apparel, the performance of the Company's products within the prevailing retail environment, trade restrictions, political or financial instability in countries where the Company's goods are manufactured, postal rate increases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company's Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.