I apologize about posting another article about their current financial situation. ;) This post was more to let members know that our comments and concerns about J.Crew are being seen and noticed- and I just thought that was pretty cool. :)J. Crew Blames Software for Its Bad Quarter
By Ben Worthen
August 27, 2008
Most retailers are blaming a slowing economy for their fiscal shortcomings. J. Crew is blaming a botched system upgrade.
The clothing company Tuesday announced that income for the quarter was down 12% from the year-ago quarter to $18.1 million. J. Crew also lowered its per-share earnings guidance for the year to $1.44 to $1.54 from $1.70 to $1.75. The culprit was a project to upgrade the software it uses to process orders from its Web site that went astray, the company said.
The new system went live on June 28, the problems began almost immediately. “We experienced issues related to the site performance, order fulfillment, and call center performance,” Jim Scully, the company’s CFO said on a call with analysts.
Just what did he mean by issues? The site has been down periodically since June, costing the company untold sales and frustrating customers, at least the customers who post on blogs and message boards. And we’ve read reports about botched orders and returns: In one case, a man was charged $9,200 for shipping and handling for three baby-sized shirts – he had ordered men’s medium – and then couldn’t get the Web site to process his attempt to return the goods, according to the man’s blog.
J. Crew said it spent about $3 million in the just-completed quarter to fix the problem, and made numerous public apologies, which J. Crew fan blogs have been tracking pretty closely.
There was a wave of businesses blaming poor results on tech-projects-gone-bad in the early part of the decade. We haven’t seen it much lately, though.
One difference: Nike, Hershey and others that had problems in the past went out of their way to blame the tech vendor. J. Crew never once tried to pass the buck. The company didn’t respond to our requests for comment, which also means we don’t know which company sold the offending technology. You can search the Web for “J. Crew” and “systems” and find the names of several companies J. Crew buys software from, but there’s not enough evidence for us to point a finger.
Wednesday, August 27, 2008
WSJ Article Mentions The J.Crew Aficionada Blog! :)
There is an interesting article over at Wall Street Journal (click here for link) that discusses J.Crew's financial situation in relation to its system upgrade. Among the discussion, there is a link to this blog- how exciting! :)
31 comments:
Dear J.Crew Aficionadas & Aficionados: Please feel free (and encouraged) to share your thoughts and opinions. :) However, please note that this is still a personal blog. So comments that are considered inappropriate (e.g. obscene, racist, homophobic, personal attacks, rude, and just plain mean) will be removed.
And now back to J.Crew! :)
Subscribe to:
Post Comments (Atom)
Alexis, dont apologize for posts on the financial condition of JCG. Its a company we all care about whether we actually own its stock or not. I, for one, also like reading about it since I would never have time to go look up these articles.
ReplyDeleteI also think its great that we are being heard. :)
Blumre: Thanks for the comment! I realize that sometimes I post too much about a topic- and try to diversify when I can. :)
ReplyDeleteI agree with you that it is great that we are being heard. To be honest, this blog has some truly insightful members (that marketing research companies charge top dollar to get the same info). :)
Hey, I would not complain if JCG decided to pay me! ;)
ReplyDeleteAlexis - Wow, it must feel great to have started something that has gained so much traction so quickly. Now, even in mainstream media. Way to go!
ReplyDeleteSale section updated with new fall items.
ReplyDeleteAnn
Alexis: You are doing a FANTASTIC job and don't need to apologize...keep up the good work! I am pleased to know we are being heard! I also hope they use our comments and suggestions to make positive changes with the best interest of their customers in mind.
ReplyDeletethis is awesome alexis! I'm so excited that it got mentioned, especially for you, who started it all!
ReplyDeleteAlexis: This is quite an accomplishment! I had worried that at some point JCG would begin to tire of our voices and not take us seriously anymore (like some haters had mentioned before) but it appears that is not the case at all. I'm really surprised you haven't been approached yet for sponsorship opportunities! Your blog has really taken off and I have never seen such popularity like this one has gained. It's all due to you and the amazing conversations that you spark with your thought-provoking articles. BRAVO!!!
ReplyDeleteKater, Jenn_Brak, FFM, & Weab: Thanks for the nice words! I really appreciate them. But I share (if not attribute completely) those nice words with you all- since it is your comments that really make the blog so great. :)
ReplyDeleteJenn_Brak: I also think it is great that mainstream media is starting to notice us. :)
FFM: I agree that it would be nice to know that our comments, if used at all, will be used in a positive way.
Don't apologize! Reading about the business end makes me feel less shallow about my obsession!
ReplyDeleteBy which I do not imply that our obsession is shallow. Only that sometimes I feel shallow about it :-)
Kudos to you Alexis! You deserve the recognition. :)
ReplyDeleteHi Alexis. Step up and be proud of yourself!
ReplyDeleteI certainly am impressed and have been all along. This is your blog and you should never apologize for topics you post here. After all, your manifesto can also serve as your disclaimer -- "a place to discuss all aspects of J Crew" so the haters can choose instead to go to whatisparishiltondoingnow.com or other myopic websites. Can't say that website exists. I think I made it up. ;-)
I appreciate the mental stimulation. Fashion isn't just about the clothing. It's begins with and is driven by commerce. Period. Congratulations on getting in the freaking WSJ! Whooooo
Alexis: I'm with everyone else - congrats and WTG! Please don't apologize - the financial situation of one of our favorite places should be able to be discussed in this forum. Those who are not interested can skip it, baby! Thank *you* for bringing many aspects of the JCrew buying experience to the fore front :)!
ReplyDeleteWow, WSJ! That's impressive :)!
Congrats on the mention! I'm sure that will bring you lots of new visitors.
ReplyDeletecongrats alexis! and don't ever apologize...you have created such a *fun* and *informative* blog!! :) polyvore should thank you as well!! ;)
ReplyDeleteI thought the last part was interesting, about J.Crew not trying to blame the software vendor. I am really curious about who did handle the upgrade! Of if perhaps they moved in-house for that?
ReplyDeleteMy understanding from what I've read is that JCrew did not renew the contract of the firm which used to handle their IT system. They wanted to do it in-house, probably to save money. Unfortunately, something went wrong with the implementation in-house. They are still sorting it out & like many of you, I think it has dragged on too long. I'm not an IT person but maybe JCrew could just eat humble pie & go back to its old systems provider? The economic climate is a challenge enough without having to deal with frustrated customers.
ReplyDeleteWhat's the most reliable method ordering stuff right now?
ReplyDeleteThanks Gigiofca & Audrey & J & CCBMum! :) I was really excited to see the blog mentioned on the WSJ site (even if its the WSJ blog). :) I also like posting about the financials- its interesting to see what directions they are going in (and what is working and what is not). ;)
ReplyDeleteMelanie: I also thought it was interesting that JCrew didn't blame the third party IT firm. It was a classy move (because certainly that IT firm would not get any more business if their name was released). :)
marie - Apparently there is no going back to the old system. They really needed to make a change to also service Madewell & Crewcuts. I suppose they will be getting the kinks worked out of what they have. I *do* think it would behoove them to close the site for a week and have a grand reopening -- after testing of course. ;-)
ReplyDeleteanon@12:14 - I would say there is no 'reliable' method. Just don't order for a special occasion and simply hope for the best on orders you place. Also, tracking orders between the live CS agents, the J Crew website and UPS channels has been helpful to me. I guess we could invent a J Crew chant or dance to do after placing orders to see if that does the trick. That's where things are right now, imo.
Hi Anonymous at 12:14 PM: I find it is better to call in and ask the CSR if the item is available in the color and size you want.
ReplyDeleteFor example, I called yesterday because the site showed the Featherweight merino ruffle cardigan available yesterday in ivory/xs. I called in the morning and the CSR told me that there was none available in that color/size and that the website was incorrect. The phone call definitely saved me the hassle of ordering online and waiting for the order to get canceled. :)
Alexis, thank you for sharing news! I was very thrilled about it. I found another article, just for your information (for J.Crew shareholders). I know it is not good news, but it might be useful to know how the company think about current business and see the market reaction.
ReplyDeletehttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOkPzG8pEUmM
Alexis Congratulations on this site it is a great place to come for information.
ReplyDeleteI also happy that there is balance between the positive and the negative here. The web site issues are serious and they need to be kept to the forefront so people know what is going on.
Note: I have come out from anominity, I have posted here for the last month and I decided it is a good place to come and stay for awhile. I am from Canada and I am jealous that I cannot shop at JC stores on a regular basis.
Alexis, may I please have your autograph? LOL. Just kidding, but I am really proud of you and the tireless work you do for this blog. Many, many thanks to you my friend you are MUCH appreciated. :)
ReplyDeleteNaomi: Thanks for the link! I will definitely check it out. :)
ReplyDeleteCasual Crew: Welcome aboard! I love your screen name. :)
JCrewJunkie: Thanks so much for the nice words- it means a lot to me!!! :)
Hi Alexis, that is so awesome that you got linked on the WSJ blog! Congratulations!
ReplyDeleteAlexis, this blog is about all things J.Crew, and it's your blog, and it's great! I think the majority of aficionadas/aficionados are interested in the company as well as the clothes. I've also learned a few things here--I'm very glad the blog isn't narrowly focused on fashion. I love this blog!
ReplyDeleteAnd I also think in an age where passing the buck is the rule of thumb, and no one takes responsibility for much of anything, that J.Crew not pointing the finger at its tech vendors is pretty classy. Very classy.
Alexis one thing I really enjoy about your blog is how it's more than simply clothes.
ReplyDeleteDon't get me wrong, I'm all about the clothes, but I really enjoy learning about J.Crew and the business side.
The fact that this blog is being read and discussed is wonderful for both them and us. talk about a great resource; they get a dedicated focus group and you have in many ways created a community of like minded people.
And you have officially become one of my addictions, right up there with good pizza, Starbucks and yeah J.Crew too.
Molly, Mary, & JCrew Guy in Canada: Thanks for the nice words! I am also happy to hear that I am not alone in finding the financials of JCrew interesting. :)
ReplyDeleteFor anyone owning jcrew stock: Jim Kramer(NJ Stock Analyst) was wearing a jcrew vest today today and gave his opinion about the company. Basically he said to hold onto the stock as it may get to $35 and above in a year once the website catastrophe is cleared up. If it gets any lower I may consider buying some(to help make up for my summer wardrobe spending)! Read Full Story.
ReplyDeletethanks jcreworama
ReplyDelete