Tuesday, December 8, 2009

J.Crew In The News: Doing It Right!

The following is an article, from NBC New York (click here), that I thought was interesting about J.Crew and its success. The media loves this company and I can't blame them! ;)
No Surprise: J.Crew is Having an Amazing Year
By Lauren Pinson

November 25, 2009


J.Crew reported a spectacular net income of $43.9 million in the third quarter -- more than twice the $19 million that the brand had reported in the same period last year. And people wondered why they gave their creative director a $1 million bonus?


According to WWD, Millard "Mickey" Drexler, J.Crew's CEO, said that the brand success is "about product, it's about quality, it's about design, it's about service, it's about creativity. It might sound simple, but in this business, sometimes the simplest things are the hardest to achieve.”


For those curious about how J.Crew's indie counterpart, Madewell has been doing pretty welll, though Drexler credited the "tweaks" over the success of the merchandise, admitting the brand has started to move away from "classic T-shirts" and toward "fashion merchandise." He also revealed that there are no plans for an "aggressive rollout" of the brand, which he still considered to be in a "somewhat incubation stage."


Most interestingly, however, Drexler said that going forward, the company is determined to "own the men's suit business" -- starting to really put its $650 models up against $2,000 competition. Look out, Brooks Brothers -- you've got competition.
J.Crew is rockin' it these days. Everyone is looking at the company as a major success story, while other retailers are barely surviving. I found Drexler's quote particularly interesting since I do believe their quality, design and service are the key ingredients to their success in the past few years. I just hope they don't stray too far away from any of these three pillars of excellence. Lastly, I guess Madewell won't be getting a fully functioning e-commerce site soon. ;)

What are your thoughts on the article? Disagree or agree with any of the details? Do you think J.Crew is on the "right track" or is "off track" with some of their strategic maneuvers? :)

36 comments:

  1. J Crew is doing it right? with all the quality and declining CS (hit and miss) complaints lately posted on this blog, I find this surprising. They may have the designs but it is disposal clothing on the most part. This will eventually catch up to them.

    Their profits are only hgher because they have cut corners in costs and in quality.

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  2. casual crew, my thoughts EXACTLY! i read that and thought quality and service are not 2 things i associate 100% of the time with the present day j crew. that was the j crew of old. style - yes, absolutely. i love many of their styles.

    as for profits - yes they'll go up when you cut costs AND mark up popular items after launching them for a lower price (think minnie pant!) to make up for lower demand on other items.

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  3. I agree the design has been great (though recent overlayered bag-lady styling and washed out colors not so much).

    I've been a J.Crew shopper since the 80's, and I can tell you that the quality has absolutely declined, particularly in the last 3 years. Even my newer Jackie cardigans wash poorly and pill, while older ones from a couple of years ago are like reliable warhorses.

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  4. I totally do not get the $10 price increase on the Minnie pant. What happened to "if items sell out, they sell out"? I've never heard of increasing the price on an item that's been out for several months.

    JC is getting short-term gains now, but other stores are stepping up their game. I think that overall, JCA's are a pretty forgiving bunch but there are a lot of people out there that won't go back after a shirt falls apart in the first wash or they have an online order mishap. Especially when there are companies like LLBean and Lands End that not only guarantee their stuff for life, they're starting to add JC-like pieces.

    Look at JC's FB page - kind of looks like JCA in that there doesn't seem to be too much love on there lately. Can't say I disagree - with the fit and quality being so 'off' these days, who wants to pay $20 to essentially try on clothes?

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  5. I love how none of these articles make mention of j.crew cutting its workforce last spring, or freezing employeee 401 contributions...think maybe I'll send drexler my j.crew dream and cashmere sweaters, and he can explain some more about "quality." Plus my slub cotton tees - I'll challenge him to count the holes.

    As for design, this fall/winter has been the least interesting collection in ages IMO. Just ruffles, frayed edges, and more of the same, in boring colors.

    Hope they don't stray too much farther from what made them so great in 2005-2007.

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  6. JCrew is obviously paying for extra advertisement/media. Still riding the First Lady wave (can't say I blame them, in this economy they would be stupid not to).

    The quality has NOT improved. That would be laughable if it weren't insulting.

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  7. I agree with the previous posters. We frequently talk about how great J.Crew was in 2005-2007, but these were rough years for them financially, so I doubt we will return to what they were doing then. High quality and classic is very hard to turn a profit on, because by the very definition, "classic" can be worn multiple seasons.

    On a positive note, I have noticed that the cashmere is higher quality than it was last year - less pilling and it doesn't itch! All three of my turtlenecks from last year itched (good cashmere shouldn't unless you have sensitive skin). I have two henleys and a shawl collar from this year and no problems. Have you all noticed the same? I would love to get a couple turtlenecks but am hesitant, as the itch issue with a tight neck is obvs different than with a loose sweater.

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  8. ITA on the quality/service declines, casual-crew, you nailed the reason profits are up! And other retails are clearly upping their games. My problem is ... I TRY to love AT, ATL,LE,BR, I really do. I appreciate their quality, promos and free shipping. I buy things there. But nothing makes me swoon like JC!

    I recently had a wardrobe consultant go through my closet w/me and do some wardrobe planning. She had me do some exercises on my "style" and the first one was called "THE 4 THINGS" ... what 4 things do you want your style to say to the world? They should be "screens" for putting outfits together AND making all new purchases. My 4 THINGS are "Polished. Modern. Classic. Girlie." She said it is easy to see why I love JC.

    I think JC must be successful these days because it is somehow delivering on the 4 THINGS of many of its customers.

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  9. Good morning JCAs! Thanks for sharing. :)

    I *completely* understand where everyone is coming from. There are some issues that should be addressed (e.g. quality decline for certain staple products; flats that are never comfortable, etc.).

    I also think J.Crew is doing a good job for being a retailer during these times. (Where buying clothes is not a necessity.) They did cut costs- some good (reducing inventory levels), some okay (reducing catalog levels), some not so good (reducing employees). I am sure it was difficult and I don't care for all the changes, but I can't begrudge them if it helps the company stay around. (I rather have J.Crew then no J.Crew.) :) This is especially impressive when other retailers aren't doing so well (Eddie Bauer filed for bankruptcy earlier this year & department stores may be a thing of the past).

    Even though I am a huge fan of their 2005-2007 work and hope they go back to that (which is why I posted that picture with the post), J.Crew is still producing items I want to buy. I recently bought the Merino ethereal ruffle cardigan and the Cashmere Ruffle V-neck and love them both.

    Sorry for the long post. :)

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  10. Last weekend I saw minnies in the store at the original price ($79.50) so people may want to call their stores before paying the extra $10 online. Also, I just read Nina Garcia's latest book and in it she mentions that J. Crew sponsored the first season of Project Runway.

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  11. Rebecca, the only JCrew cashmere I purchased this year was my snow hoodie. I'm not impressed with the quality of that item, but it's because I found a flaw in the knitting when I was washing the sweater. Again, where are the JCrew inspectors? Second quality items should not be in their regular stock!

    As far as cashmere quality goes, IME it's not just JCrew. I've noticed a quality decline in Lands' End cashmere as well. I'm seeing a lot more pilling in my new sweaters. Sad but true.

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  12. Alexis, not to echo your sentiments, but I feel the same. I definitely prefer J. Crew to no J. Crew. They're still my favorite "go-to" store for many staple items.

    Like all retailers, though, J. Crew has some room for improvement. In addition to your list, I'd add that a) the shoes are over-priced; 2) prices should be consistent on-line and in-store; 3) credit card reward points should roll over; and 4) the shipping costs need to be reduced and/or there should be a continual "Free shipping on orders over $100 (or less)" offer.

    Unlike some other JCAs, I haven't had any big problems with the quality of J Crew's clothing. Yes, my Dream and cashmere sweaters pill, but at the same rate as sweaters at the same price point that I've purchased elsewhere. I also order a lot, and have never received an incorrect or damaged item. And overall, I like the SAs in the store and on the phone--find them to be professional and helpful and (mostly) friendly--but as I said yesterday, I don't call CS all that often.

    At any rate, I've personally bought from them more this year than any other, so they must be doing something right :)

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  13. I vowed not to buy any J Crew cashmere this winter. I wore a cashmere cardi from Nordstrom last week. It's 5 years old and has hardly ever pilled. I checked it for pills in the morning and again in the evening. I found 1 under the arm. This wasn't even a super expensive sweater - about the same price as J Crew. However, when I look at Saks, Nordi's, Bluefly... I just don't see designs and colors I like as much as what J Crew offers. They always get me! If my resolve doesn't hold up at least I vow to not pay full price. However, I am loving the ribbed cashmere cardi.... Oh J Crew, why do you do this to me!

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  14. silver_lining: I really hate it when JC raises the price of the SAME item (Minnie, Chambray shirt, I'm sure there are more). I get that it maybe a popular item but does Mickey have to play this way to raise profits?

    ITA with a lot of other JCA's are saying about quality and cutting costs by laying off jobs and all. Though I do not get TOP customer treatment all the time, JC has some great customer relations through their Personal Shoppers. If it wasn't for my PS I wouldn't be buying as much as I do now.

    As much as I hate some of the things JC does such as inconsistent customer service, HIGH shipping rates, lack of credit card incentives, declining of some quality, etc.... I LOVE their style and I guess that's why a lot of us are still buying JC.

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  15. I second (or third or five zillionth) the sentiment about JC becoming disposable clothing. The classics with a twist had morphed into, in my opinion, not "fashion forward" but overly trendy and overly styled. Mickey and Jenna are constantly belaboring the quality and consistency points but it seems like they doth protest too much. Who are they trying to convince?

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  16. While I'm one of those longing for the 2005-2007 days, I do realize they are making greater profits now than then. Then, I wanted to buy almost everything. Now, I look for the items that are similar to the ones "then". Their quality and detail then were stellar and that leaves less room for profit. I'm sure profits are higher now, I just have to be choosier.

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  17. Male JCA here (JCO?) Interestingly, I've never experienced these quality issues with the menswear. I own two cashmere cardigans from 08 that I wear frequently and they're still in excellent shape. Secret-wash shirts, lambswool sweaters, silk ties...everything is still good. I wonder if J. Crew purposefully makes women's clothing of a lesser quality. Women's fashion is certainly more transient then Men's. JC might be thinking that shifts in trends would render the need for longevity moot.

    Also, regarding the predictions of impending doom for J. Crew - I think we be may overestimating how much of an impact we have on JC's bottom line (when I say we, I mean the avid followers of this blog). I see this to some extent in many forums. In the dvd forum I'm a member of, it's people wondering why anyone puts up with incorrect aspect ratios, shoddy packaging, and burned-in subtitles. The answer: the majority of the public really doesn't care and are much easier to please.

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  18. QNQS, I agree that JCrew menswear is much higher quality than women's wear. I don't believe men are as tolerant of "disposable clothing" as women.

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  19. Alexis, I echo your sentiments about the shrewd (although sometimes depressing) moves J.Crew has made. While I'm a prepster at heart, I've loved the direction J.Crew design is moving in. My annual spends have increased with them every year. I've been pretty lucky with their cashmere and I've only culled a very few misses from my closet. I've found at least a couple of items to love in each release and that's enough for me.

    To me J.Crew's weakest point is customer service. I've had enough great experiences with helpful staff to keep me coming back but the bad experiences I've had stick in my mind longer. I do wish they'd train their staff that when in doubt, err on the side of the loyal customer.

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  20. Quiet Night Quiet Stars,

    (I really like that username by the way.)

    I believe you are right as to what impact the followers of this (and other blogs) have on JC. Others out there in the world are likely more easy to please.

    I do think though it is important for people to keep posting about negative experiences and falling apart clothing and other consumer issues on this blog (as well as our Love for JC) b/c it is important to get the word out and JC corp. does read this blog. Some awareness is better than none at all.

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  21. I think J Crew's profit that they're so proud of is probably more due to the increasing margin between lower quality (cheaper to make) and higher prices. They've coinsistently raised their prices over the past 5 years, and the quality has declined...OF COURSE they will see a profit.

    I do love their cashmere...I buy it on sale, it is thick and soft and comes in wonderful colors...and it's made in italy, not China.

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  22. Emily-
    Only their yarn comes from Italy (and it ships in huge spools we would not recognize). The yarn is then knitted and sewn together into sweaters in China. I am not sure if it is dyed in China as well, the one picture I have seen could have been the warm shell color or it could have been undyed.

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  23. emily,

    Most (if not all) of the jc cashmere sweaters say, "made in China of Italian yarn."

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  24. Thanks, Rebecca. That's disappointing...won't stop me from buying though.

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  25. I agree that style and customer service are JC's high points. The quality though is most certainly getting iffy.
    I think JC is definitely raising it's profits by cutting labor cost. My theory is that this is especially true in the warehouse, which is why we see so many defective items being shipped in the last 9 months. BUT their revenue is up. This is sales before costs. You can't argue with that.

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  26. I wonder too if they have ANY quality control.

    I have actually received 3 items in the past two years that had red arrow stickers on them actually pointing to the defects on the garments that were still sent out to me! How BAD is that????

    Maybe I order too much b/c I have had other defective items but these 3 take the cake!!!

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  27. I still wonder if their revenue is up because sales are up or because costs are down and prices are up.

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  28. Genny, I've also received items with the red arrow "defective" stickers. WTF?

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  29. Oh how J Crew LOVE's this blog when some of it's dedicated customers are basically providing a survey for them-LOL! This is good for them and I do hope they take it to heart as there is need for improvement.

    My big ?? is that I don't know if they can improve quality without raising their price-point. I think things are over-priced right now and still feel they are a sale only retailer. But when they put out a Whirling Ruffles Cardi that is $49.50 with good quality cotton and a fun appliqued design, IMO people are going to scoop that up. Whereas..a tee that is $52.50 and doesn't wear well. It's hard to see the logic. They need to price things correctly/reasonably from the get-go. BTW-I do not pay full-price unless something is unique/exquisite and will be gone if I don't.
    Another thing I find is they are featured all over every INSTYLE mag, on Mrs. O and her kids. Jenna is on Martha Stewart..I mean they are getting some serious publicity and many newbies are going to pop in and pick up something they see in INSTYLE at full price. They may wear it a couple times and retire it (disposable) and not even know it would fall apart had they worn it a few more times.
    ITA w/Rebecca & echo Lauren S. as that's 100% my experience. I dont have quality probs diff than other retailers and they still get 95% of my clothing money. Crewcrazy: ITA on cashmere color/style beats eveyone else hands down...kills me...I cave. I cannot believe how many comments I am just finding my head going up and down in agreement. QNQS-very interesting point re: quality and def agree that we are such a small pop. of the JC wearing public. It is sometimes forgotten on this blog:)

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  30. jeanne,

    That is the first on this blog or anywhere for that matter that I have heard of anyone else receiving items with those stickers. OMG. WTF??? is right.

    When I inquired about them I was told I should not have even been sent them....Is anyone at JC paying attention...I was SENT them and more than one time!!!

    So good to know I am not alone.

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  31. QNQS, I agree too.. the men's stuff is of really good quality compared to women's and is worth paying the price for. Women's stuff on the other hand is expensive if calculated per amount of fabric used.. but then we pay for fashion not 'fabric' I guess.

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  32. @Jeanne: Most definitely. For most guys, a clothing purchase is something that is expected to last for years.

    @Genny: Thanks, it's the first line of Antonio Carlos Jobim's bossa nova standard Corcovado.

    @Vichy: I'm very pleased with the direction J. Crew has been going in for menswear. I see three basic facets to their current line. You have the Wild One/rugged loner/adventurer every guy fancies himself as with their collaborations with Barbour military jackets, chunky Red Wing boots, and their continued exploration into simple, dark denim. Another aspect is their sort of Johnny Depp/dandy-young-professor with their heavy tweed/herringbone jackets styled as outerwear, the odd pop of color the cashmere cardigans, tartan bow ties, and their whimsical emblematic ties full of sheep, mermaids, and chess pieces. The last aspect is their Steve McQueen/effortless cool casual. The signature Baracuta Jacket, the colorful flannels, and classic clean Jack Purcells.

    I agree with everyone here that the "kitchen sink" layering going in the recent women's styling isn't particularly attractive but I love the color combinations they come up with in the Holiday catalog. Page 9: Light Pink/Olive/Tomato. Page 32: Bright Blue/Olive/Cherry. Page 50: Red/Charcoal/Midnight Blue. Page 88: Warm Grey/Lavender/Burnt Orange

    @Sweetsy: As you said, the pricing is pretty wonky sometimes, and I also rarely buy JC at full price. Their outerwear is particularly high in my eye. I recently purchased a leather jacket from AeroLeather (Superb British company that specializes in 100% reproductions of WWII flight jackets) for about $600. JC's current leather jackets are right there in price...and I KNOW they aren't that good. $800 for the Macs?! I bought a vintage trench off ebay for the piddling sum of $17 and it's perfect. Menswear doesn't really change, so vintage is usually a good option for me.

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  33. Quiet Nights Quiet Stars,

    Enjoyed reading your comments just now.

    I am going to look at those color combos you mentioned when I get a holiday catalog. I don't have a paper catalog yet and looking online is just not the same!

    Need to listen to that piece of music you mention as well. I need some quiet in my life right now so hope it is just that and more. Thanks.

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  34. Taking this lapse in quality control judgement on J. Crew's behalf to support other brands such as AT/BCBG/assorted brands at Anthro. There's no quicker way for a company to wake up than to take a hit on the bottom line. Albeit, this is not a permanent departure from J. Crew...but rather a "hunger strike" on my own behalf. My wallet thanks me, as does that little green card I have of theirs.

    Quite frustrating for things to fall apart after spending soo much money and time on them.

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  35. I found it so interesting that this season has been so great for them because I am a longtime customer and this fall I bought way less than in previous years - I just feel like they're not offering anything new.

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  36. hi all. re: the customer service issues, i came across an interesting perspective from a retail consulting company... essentially they find that job insecurities are resulting in poor customer service.

    http://www.prnewswire.com/news-releases/retail-sector-job-insecurity-not-translating-into-quality-customer-service-78759767.html

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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! :)