New York-based cataloger/retailer J. Crew Group reported a 150% leap in second-quarter operating income, to $20 million for the 13 weeks ended July 30. Direct sales increased 35%, to $58 million from $43 million last year.
Consolidated revenue increased 22%, to $229 million, with store sales up 17%, to $163 million. Comparable store sales increased 15%.
Gross margin increased to 42% of revenue in the second quarter, compared with 39% a year ago, primarily due to lower markdowns in all of its sales channels.
Perhaps best of all, J. Crew ended the quarter in the black. The apparel merchant, which recently filed for an initial public offering, reported net income of $2 million, compared with a net loss of $14 million last year.