Fine Fourth Quarter for J. Crew’s Direct Business

In its preliminary results for the fourth quarter and fiscal year, New York-based apparel cataloger/retailer J. Crew Group announced a 47% surge in direct sales for the quarter ended Jan. 29. The company’s consolidated revenue for the fourth quarter increased 26% from the same period last year, to $264 million. Retail sales (including factory stores) for the quarter increased to $183 million from $154 million last year, with comparable store sales up 17%. The direct business (catalog and Internet) reported revenue of $72 million, up from $49 million last year.

Gross margin for the fourth quarter of 2004 was 39%, comparable to last year. J. Crew’s selling, general and administrative expenses during the quarter were $82 million, or 31% of revenue, compared to $80 million, or 38% of revenue in the prior year. Operating income increased to $20 million, up $19 million over the corresponding period in fiscal 2003. J. Crew–which is not publicly traded–reported a net loss for the fourth quarter of $52 million, compared to a loss of $20 million last year. But this year’s results included a $50 million loss from debt refinancing. Adjusted for the loss on debt refinancing, the fourth quarter net loss would have been $2 million, an $18 million decrease in the loss over the fourth quarter last year.

For the fiscal year ended Jan. 29, consolidated revenue increased 17% to $804 million, up from $690 million last year. Retail sales increased to $580 million from $487 million, primarily as a result of a comparable store sales increase of 16%. The direct unit’s revenue was up 14% to $198 million in fiscal 2004. Gross margin for the fiscal year increased to 40% from 36% last year due to improvements resulting from higher full price sell-through. Selling, general and administrative expenses during the year were $287 million, or 36% of revenue, compared to $281 million, or 41% of revenue in the prior year.

Operating income for the year increased by $69 million to $38 million, compared to an operating loss of $31 million last year. Net loss for 2004 was $100 million compared to a loss of $50 million last year. But fiscal 2004 included a loss from the $50 million debt refinancing, while 2003 included a gain on exchange of debt of $41 million. Adjusted for these financing transactions, the net loss in 2004 would have been $50 million, compared to a net loss of $91 million last year.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.