J. Crew Revises Fourth Quarter, Annual Results

Having made the strategic decision to clear inventory at the end of each selling season, apparel cataloger/retailer J. Crew Group has revised its net loss and EBITDA results for the fourth quarter and fiscal year ended Feb 1–and not for the better.

The company increased its fourth-quarter net loss by $9 million, to a loss of $20.7 million for the three months ended Feb. 1. In the fourth quarter of fiscal 2001, J. Crew posted net income of $6.7 million.

For the fiscal year ended Feb. 1, J. Crew’s net loss ballooned to $40.6 million, compared with a net loss of $11 million the previous year.

Under its previous strategy, excess prior season inventories would have been carried over for sale in subsequent seasons. Under its new strategy, J. Crew will accelerate the disposition of these excess inventories through factory stores, Internet promotions, and warehouse sales.