J. Crew Ends Year Further in the Red

Apparel cataloger/retailer J. Crew broke the string of solid sales and earnings reported by cataloger/retailers such as Coldwater Creek, Brookstone, and Williams-Sonoma during the past few days. New York-based Crew posted sales declines and losses for its fourth quarter and year ended Feb. 1.

Fourth-quarter revenue fell 2%, to $241.8 million from $246.7 million the previous year. Net sales in the direct division, which includes catalogs, decreased 6%. Comparable store sales declined 8%. Net loss was $11.7 million, compared with net income of $6.7 million for the fourth quarter of fiscal 2001. The fourth quarter of 2002 included pretax charges for severance and other one-time employment-related costs of $7.7 million.

Revenue for the year fell 1%, to $766.4 million from $777.9 million for fiscal 2001. Net sales in the direct division decreased 4%, while comparable store sales declined 10%. Net loss was $31.6 million, nearly triple the net loss of $11.0 million for 2001. Results included pretax charges for severance and other one-time employment-related costs of $13.7 million for fiscal 2002 and $3.2 million for 2001.