J.Crew has come out with their First quarter (fiscal 2009) results (click here). Some highlights include:
J.Crew is doing much better than its competitors- which I am happy to see! I am also listening to the conference call. Here are some notes so far:
- Mickey Drexler kept reiterating the point of their commitment to quality & value. (Seriously, he must have mentioned this at least 10 times- no matter what the question. We get it already!) ;)
- They are happy with the Crewcuts line. They will only open 1 additional Crewcuts store (in NYC) this year. The plan is to mainly keep it direct (online/catalog) as oppose to retail. They are also lowering price points in response to parents concern of costs.
- Madewell is opening additional stores. The original concept had jeans priced at $98 and above, but they found that with the economy (and competitors), they should start to offer $59.50 and above (with their new line called Madewell37; coming in July).
- Mickey knows they are less promotional than their competitors (e.g. less private and public sales), but they think this works for them. They also have been offering less markdowns and buying more "shrewdly".
- J.Crew adjusted prices from being too high. Also, Mickey said that customers have a short term memory- if they see something they love, they buy it.
- Discounting is a big issue. Mickey doesn't want to have their products discounted and sold somewhere else- that is why they have Factory Stores. (Um... so then why was J.Crew available in Marshalls stores awhile back?)