Tough Fourth Quarter For J. Crew

Fourth-quarter revenue for apparel cataloger/retailer J. Crew decreased 3%, to $388.0 million. Same-store sales slipped 4% while direct sales fell 2%, to $123.0 million.

For the quarter ended Jan. 31, store sales (retail and factory) decreased 3%, to $252.0 million. The net loss for the quarter was $13.5 million, compared to net income of $25.0 million in the fourth quarter last year.

J. Crew chairman/CEO Millard Drexler said in a release: “We are disappointed with our fourth quarter operating results. Our mission, day after day, is to adjust to this new, not fun, retail reality, while not compromising our long term strategy and integrity. We believe the actions we are taking, our focus on quality products and customer service, along with our strong balance sheet, will position us well for when the environment eventually improves.”

For the full year, J. Crew’s revenue hit $953 million. Stores sales increased 16%, to $670 million, with a comparable store sales increase of 13%. The New York-based company’s direct sales increased by 28%, to $254 million.

And for fiscal 2008, sales revenue rose 7%, to $1.42 billion. Store sales (retail and factory) increased 7%, to $974.3 million, while same-store sales decreased 4%. Direct sales increased 8%, to $408.9 million. J. Crew’s net income for fiscal 2008 was $54.1 million, compared to net income of $97.1 million last year.

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