J. Crew hits all-time low as analyst cuts outlook: J. Crew Group shares hit new low as analyst predicts weakening results, higher markdowns
By CNN Money
November 10, 2008
Shares of J.Crew Group Inc. fell to an all-time low Monday after an analyst said she expects weaker results from the apparel and accessories retailer, and lowered her estimates and price target on the stock. UBS analyst Roxanne Meyer said in a client note Monday that New York-based J.Crew has proven not to be immune to the weakening economic environment.The company has "solid" product execution but there have been more promotions during the quarter than planned, Meyer said. "Although we think product is appealing, we believe J.Crew's heightened exposure to basic 'classic' items and to the New York-metro area will weigh on sales," Meyer wrote. "Promotional levels have been high in the third quarter, which we see as incremental to current guidance."
She lowered her third quarter earnings estimate to 24 cents from 28 cents per share, her fourth-quarter estimate to 29 cents from 34 cents per share and her 2009 estimate to $1.44 from $1.62 per share. Meyer also lowered her price target by $3 to $17. Shares fell 66 cents, or 4.1 percent, to $15.35 during midday trading. They earlier reached a new all-time low of $14.86.
I am disappointed but not surprised by the news. J.Crew has definitely increased their promotions lately. Unfortunately, some of the promotions were not the most attractive offers- like the one for free shipping on orders of $195+. Although, right now there are no codes for free shipping being offered and I would be happy to see one! ;)
What are your thoughts on the article? Are you surprised/ not surprised by the outcome? What do you think J.Crew should do next?
I think that they should make shoppers WANT to shop with them via % off sales and free shipping codes. They should also update the sale section...keep it fresh.
ReplyDeleteI so called it. But then again, anyone with math skills could..well, do the math. Get it together J.Crew, quit hoarding the clothes like it's worth more not to sell it to us!
ReplyDeleteI think its a 'No Duh' moment, hopefully JC will listen up, and offer some incentives to shoppers.
ReplyDeleteAlexis,
ReplyDeleteGreat post. I like reading newsy articles on JCrew and the company. (even if it is bad news)
Too many order problems have turned me off more than anything. Who has time in their lives to spend hours on the phone and/or sending emails to figure out problems? Instead of spending time with my daughter tonight I was emailing and on the phone trying to fix a big problem on an order. I felt so guilty for taking time away from her...not worth it!
Mickey should abandon his upscale plans clearly they are not working for the company.
ReplyDeleteAlso what did they mean by "we believe J.Crew's heightened exposure to basic 'classic' items " has hurt them? Classics are not selling?
Hi Everyone! I guess the consensus is that this news is not unexpected! ;)
ReplyDeleteI have to say that JCrewJunkie's solution of increasing free shipping codes; Anon at 5:01PM's solution of selling the clothes in inventory; and Anon at 5:13 PM solution of reducing order problems- are simple solutions that makes a lot of sense. I hope J.Crew is listening! :)
If I were making decisions over at J.Crew I wouldn't be giving away items, but rather instead offer free shipping with low minimums and offer a percentage off the sale items.
ReplyDeleteAll of us seem to buy more and more frequently when the shipping codes are available. But J.Crew most likely knows if this works or not. If it works we can expect to see more deals like that. J.Crew should be able to track if certain promos give them more sales.
I feel J.Crew will better the rough economic times better than many other chains. With good items and fair prices they should do just fine.
All the similarly situated retailers are offering incentives and moving inventory and their stock prices are also low. It's a bad time for retailers, across the board. The bottom line is you don't make money if you don't sell things. When the belts tighten, full price items don't move and J. Crew doesn't like to be a "sale rack" store.
ReplyDeleteI know that I would buy more with some more attractive codes and offers.
ss,
ReplyDeleteI agree with most things you said except the loyal customers...JCrew used to have them but with the computer "upgrade" and continued problem and cancelled orders I know many who are "jumping ship" or have already jumped!
I really would love a % off coupon soon!
ReplyDeleteDuring the holiday season, especially, there is great competition among catalog companies to offer free shipping! Otherwise, we might as well shop in the stores, get the better prices, and discounts (the 10% coupons being given for email addresses, educator/student discount, etc.) without any hassles.
ReplyDeleteI emailed J Crew about an item that went on sale for less the day after I ordered it, for an adjustment, last week, and they still have not emailed me back.
I have dozens of J Crew cardigans and sweaters and cashmere and cords and tees, and I would make it through the winter or this economic crisis just fine if I didn't buy another item from J Crew for myself.
The sales at shopping malls and box stores will be big this holiday season, and I won't waste time either, holding on the line for cs, or trying to get adjustments.
This problem is the same across for all companies. It's not that JC is making bad decisions, it's the economy. If you ask me I'd say JC offer plenty of promotions to entice people to buy their products, but that's not going to change the fact that everyone is saving up & not spending. There are things that outweigh JC.
ReplyDeleteThe plans for this year were made a year ago. No one could have predicted the slide that started in July and continues, not even many of the stock experts.
ReplyDeleteA year ago, this 'posh/special/expensive' marketing would have reached it's intended audience, and would have been fine, but now....
People are cutting back on ALL non necessities. J Crew is hardly the only Company suffering.
Mickey is a 'forward' thinker. He doesn't let outside forces control his ideals. He's probably already thinking about next Fall.
In the meantime, I hope to see some better deals. I don't count on it though. I think he'd rather have a couple bad quarters attributed to the economy than cheapen the brand by dumping the merchandise with 'fire sale' style panic.
Unlike SS, I'm a big fan of Banana Republic and it's tied with J.Crew for my favorite stores. But JC could learn a few things from BP. I went to BP on Saturday and they were offering 20% off sale items and an additional 25% off everything for BP card holders (I scored a pair of pants that were originally $110 for $29). Consequently, the store was packed and they were making lots of sales. Same story when I went into the Gap. Then I went into JC, where there were far fewer shoppers and even less sales. Then today I received a friends & family discount e-mail from BR for 30% off and a portion of all sales going to charity. JC needs to recognize that such offers make it more appealing to shop and more likely that shoppers will spend money.
ReplyDeleteMore Free Shipping Codes and Coupons, allow the combining of coupons!
ReplyDeleteJ.Crew has a new coupon code that's 70% off, free shipping, all the works: JCG.
ReplyDeleteIf Mickey is a forward thinker why did he tank the Gap? He did not change with the times..sounds familiar doesn't it?
ReplyDeleteUnlike SS,
ReplyDeleteI too can find plenty of clothes that fit, are well made and unique and with free shipping and discounts...I don't have a problem finding things...it's deciding what to buy!
s.jocky:
ReplyDeleteWhat is the code or is it the last 3 letters on your post???
LOL- it's a snide joke. JCG is the stock symbol that is 70% off from it's 52 week high.
ReplyDeleteOh, thanks...it is very late where I live and I was wondering..he he...good one
ReplyDeleteI just want a free shipping no limit coupon...even for a day or two.....Pretty please:)
ReplyDeleteYou can't compare J Crew to BR. They few fewer stores and selection. Jcrew wants to appeal to a discriminating shopper who appreciates a unique item and only buys what she truly loves. Most of the bloggers on this site are sale shoppers only. I don't think Jcrew is trying to win those shoppers over. Their sale decisiions are more likely based on inventory, need to clean out before new stuff hits the floor. We can't keep hoping or bottom basement prices. If they wanted to really mark down like BR than they will have to produce much more. Which in turns leaves us wearing the same clothes as everyone else at the mall. No thanks. I would rather pay higher prices and get something special and unique than a closetfull of boring clothes.
ReplyDeleteJCrew always claims that their core customers are affluent American people -- but what happened to all those affluent people? I mean, according to JCrew's claim, those people who used to shop at premium designer's -- they should shop even more at Jcrew instead of continuing shopping at Channel and Gucci etc, right? After all, the core csmtomers of JCrew do not seem as affluent as what JCrew wishes for.
ReplyDeleteAnd because JCrew has been reluctant on giving out attractive online promotions, I drained a lot of my budget at Banana Republic, Bluefly and RevolveClothing instead!
I do love JCrew, but I am not affluent enough to spend my money at JCrew when I see better deals elsewhere.
Hi there. It's been a while since I've posted b/c I've been too consumed with work. I just checked the sale section and there is a bag that I'm dying to get, but I really don't want to pay the shipping when I'm already dropping nearly $300. What happened to the "justask" code? I thought that it was supposed to work all the time?
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAlexis-I agree with you. Offering me free shipping with a $195 minimum purchase is RIDICULOUS ; it's an insult IMO :)
ReplyDeleteNordstrom: FREE SHIPPING with a $200 purchase offer is PERMANENT (and look at the designers and brands they offer-so easy to spend much more than $200 on their website!!!!)
Neiman Marcus: FREE SHIPPING with no MINIMUM PURCHASE still applies
Ralph Lauren: Free shipping with a $195 is also permanent (otherwise a flat rate of $10 applies)
Do JCrew people even read this blog? I hesitate to buy Items that are offered online only because of their sizing (not always TTS as most people on this blog know already!). Buying something,returning it and then ordering it again is an unnecessary hassle-I had to order their cotton argyle hoodie THREE times until I got the right size-I am not going through the same process ever again :/
Anony@6:43
ReplyDeleteI know plenty of people and this blog included who buy full price items (I just spent a lot on a collection piece) we do like to get free shipping though...at least I do:)
And let us not rehash the JCrew is not BR again...nobody is saying it is...they are just saying there is more than one place that they like to shop:)
anon at 6:04,
ReplyDeleteLast season was not a good one for retailers by any means, and to say that no one could have predicted this current scenario simply isn't true. The housing mess brought on by greedy borrowers and lenders has been fomenting for much longer than just this past summner.
Of course J.Crew is experiencing the same problems as every other retailer save maybe walmart. People aren't buying. In times of recession, people aren't going to be enticed by cashmere sweaters no matter who the maker is.
J.Crew picked a bad time to go upscale. Their stock is likely to continue to slide, because this recession isn't ending just because we finally have a President (elect) with a brain.
Ok, people aren't buying. To be more precise, there are not enough customers who make purchases at full price. So how does it help to refuse promotions and keep the price high?
ReplyDeleteIn theory, targeting so-called affluent customers sounds like a genius idea. Or is it just a sweet day-dream? In practice, there just aren't enough of them out there for JCrew, it would seem...
The recession is world wide the problems have been there for over a year now.
ReplyDeleteI'd definitely love to see more promos. It's hard to get revved up to buy a cashmere sweater from J. Crew when you can find it elsewhere (and cheaper, because that retailer is offering promos up the wazoo). Sorry J. Crew. I love you, but it's true.
ReplyDeleteWhen times get tough, the tough get going. Time to get going, J. Crew.
With competitors offering incentives such as $25 off coupons, 50% off outerwear, and the like J.Crew has been startlingly absent from the game. I agree with anonymous at 5:01 p.m. who stated "Get it together J.Crew, quit hoarding the clothes like it's worth more not to sell it to us!" Where is the incentive, especially at this time of year, to purchase J.Crew merchandise? 30% off sale items (dare not confuse that with promotional items, wink wink) is less than exciting. Just about every retailer is pulling out all the stops offering incredible deals that change upwards of 2-3 times a week to keep shoppers coming back for more. It's no wonder that J.Crew B&Ms are loaded with merchandise. J.Crew, please wake up. The days of buying that $250 cardigan on a whim are temporarily over (sigh).
ReplyDeleteI agree with the other posts that JC is just feeling the same pain as other retailers. However, they're making an even bigger mistake by not offering a free shipping (or even low flat rate shipping, like many others on this blog have suggested).
ReplyDeleteI don't consider myself "affluent" by any stretch of the imagination, and I don't buy in quantity, but I am willing to pay full price for quality and for something I truly love, and JC has had a few things I really fell for this season. I willingly paid full price for the metallic Jamie bag, the bright blue double serge pencil and the metallic flecked pencil...because I know I will have and love these items for years to come. But one thing I was/am NOT willing to pay is the usurious shipping. And I'm sorry to say it's mostly the principle of it.
Consumers at any level, can get free shipping almost everywhere else these days: I can get it from Target by spending $50; I get offers every day from Nordys, Neimans and Saks; I can order a pair of Marc by Marc shoes from Zappos (AND return them if they don't fit) and even order directly from designers like Ralph Lauren and Stella McCartney...all for free. It's not a matter of whether their customers can afford it; it's that consumers in general have become accustomed to certain perks. Free/low shipping is almost a given now and would in NO way negatively affect JC's brand image.
In this economy, value (and I don't necessarily mean low prices but rather feeling like I got a good value for money spent) and feeling valued as a customer have become very important to me. And I would definitely prefer to shop at Nordstrom or Zappos because of their extraordinary customer service. If JC doesn't change the absurd shipping charges, their online store will go the way of those stores, restaurants, etc who refused to take debit cards because of the costs associated with card processing. Remember those? No, probably not, because they've all gone out of business by now.
lolafrye - I agree with and understand your point. However, one thing always drives me crazy. People are always pointing out free shipping and returns with Zappos. Am I the only one who has notced that their prices are ALWAYS $5-$10 more that competitors. Both for handbags and shoes. They make it very obvious that we could get free shipping with our J Crew clothes, but that is going to be built into the price somewhere.
ReplyDeleteAll good ideas. So IF J. Crew is reading this, why no free shipping for those of us who only wear the J Crew PETITES, which are only available online?? I don't have the option to go into the store for them. BANANA REPUBLIC had free shipping on petites up until they started carrying them in the stores. At the very least, offer a discount on shipping to card members. Or just charge us what it actually costs to ship an item! I just paid over $17. for them to ship me the Shimmy Dress, which weighs about an ounce. It's such a racket.
ReplyDeleteI absolutely agree with most of the bloggers about shipping. Almost every other retailer offers free/reduced shipping. Even Saks, Neiman and Nordstroms have shipping promos. I am always attracted to a free shipping promo because I know I have nothing to loose if I don't like the item. With J crew you are out the insane shipping cost if you are not happy. They really need to get on ball.
ReplyDeleteOf course JC is going to suffer in this economy. But I hope they just stay the course, be patient, continue to produce their great, stylish clothing at affordable prices and above all, stay the course. If they stay true to their mission, they'll come out ahead. The last thing I want them to do is start giving their clothing away in a fire sale because their stock prices have fallen. There are many items I'm quite willing to pay full price for and others I'm willing to wait for. The only thing I'd like to see them do for this holiday season is a flat shipping rate. And I fully expect they'll do something like this. Stay tuned.
ReplyDeleteHonestly to even compare BR to J Crew is insulting. Take a look at the fabrics that BR uses. Awful. Ever hear the saying you get what you pay for????
ReplyDeleteI am so tired of ordering from them. My last 4 orders, the first one had duplicates of one item instead of another item in the order, another order had a missing item, yet another order out of 8 items I ordered, 5 were cancelled over a space of 5 days and finally the order I received tonight, they sent me the wrong size jeans.
ReplyDeleteAnon @ 6:43, "JCrew wants to appeal to a discriminating shopper who appreciates a unique item..."
ReplyDeleteAre you kidding? You make it sound as if JC is a boutique offering one-of-a-kind special items. Everywhere I go (work, parties, school, church, etc.) I am surrounded by women wearing JCrew -- ALL of it entirely recognizable. "...which in turn leaves us wearing the same clothes as everyone else at the mall" The MALL is where I see the most JCrew clones! As far as their shoppers being "discriminating", you've obviously fallen for their marketing scemes. Their clothes are made in the SAME factories (sweatshops) as BR and all the other stores. Stop drinking the kool-aid! (I still love JC, BTW)
anon at 838 is right - J.crew's clothes are made in China and the Phillippines, just like BR, just like so many other retailers. To act as if J.Crew is so far ahead of banana republic is ludicrous - both offer many items in cashmere and wool and silk, and both offer items in synthetics, too. I believe it's pretty well reported on here, too, that j.crew shoes are not very well made.
ReplyDeleteI, too, am a fan of j.crew, but i lay off the kool-aid, so to speak. They're not chanel. They're not couture. They're j.crew.
Funny, but if you have a sense of style you can put together outfits that don't shout JC - in fact, I often get asked 'where did you get that?' and most often the answer is 'J Crew'. J Crew may not be couture, but they certainly craft a better jacket - think Andrea, Simone, etc - for a fair price than anyone in their retail category. Hands down.
ReplyDeleteThey're a mass-market retailer, selling clothes made for cheap in china.
ReplyDeleteAnon @8:33pm -- I agree that in general, I like the fabric of JCrew better than that of BR. But JCrew is not shockingly superior to BR, nor it is always better than BR.
ReplyDeleteI'll say about 2/3 of time, JCrew is better. About 1/3 of time, I actually do find good fabric at BR that I could not see at JCrew.
For instance, the BR silk-blend cardigans were really awesome -- something I could never find at JCrew, and I ended up stocking them up in 7 colors. And I noticed these particular cardigans were selling out at light speed too.
This year's JCrew's dream fabric is a real joke to me. It's actually pretty insulting to use the word "dream" to that harsh quality of fabric. Yeah, I also don't like a lot of wool-blend at BR, but at least they have good promotions/sales.
I bought some of J.Crew's dream sweaters last fall and they've pilled like crazy - I really regret buying them and I won't be buying another one.
ReplyDeleteHi ladies (and Jeff),
ReplyDeleteSpeaking of other retailers offering coupons and such, I just got a 25% off coupon for use in a Coach store (no online, no outlet). It's good Nov 15-23, I think. Anyone want it? I won't use it, so email me and I'll mail it to you tomorrow.
stephanie.marty@gmail.com
JCrew Company is pretentious, and that often bothers me. But I like JCrew clothing when they are on sale.
ReplyDeleteJCrew pretends they care so much about customers, but JCrew is the only company that puts me on hold for 20~30 minutes every now and then because of their own mistakes.
I prefer BR for not making a single mistake so far, and always offering me free shipping + free return shipping. That's what I call as a superior customer service -- just don't waste my time and money, then I will stay happy. LOL
Reading the comments, I came to wonder what people on this board would prefer among below two options...
ReplyDelete1. Customer represents who are very much willing to help you to figure out your concerns about certain items over the phone, but put you on hold for 20 minutes while they examine the products at the mock store. (but no free shipping.)
2. Free shipping as well as free return shipping service at all times that enable you to order multiple items when in doubts.
Personally, I'd like a mixture of both, but if I have to choose one, I'd prefer (2), because option (1) takes too long at times, and sometimes ended up being not so helpful.
Nothing gets your stock up and your stores busy like a good holiday sale & web-site promos-Like FREE shipping! I can't tell you how much I order from Boden for myself & kids because they almost always have free shipping & free returns-LOVE IT. We all have limited $$ to spend at Christmas and I am going to shop where I can buy fun, classics and get the most for my more limited budget. Please listen J Crew and get your act together. We all buy more when your awesome stuff is offered at a better price.
ReplyDeleteTwiga
I think BR has great fabrics. In particular, their lightweight wool suits/separates are awesome. Also their merino wool and cashmere is good quality.
ReplyDeleteI giggle when I read things like "Doesn't J Crew read this blog?" As if J Crew will bow to their will immediately upon reading it. LOL.
ReplyDeleteI giggle at JCrew's email promotions.
ReplyDeleteAs if customers are all dumb...
J Crew needs to get rid of Final Sale.
ReplyDeleteMy Coach coupon has been claimed!
ReplyDeleteOk here is why the J Crew sale section is a DUD right now- 4 pages of swimsuits but only 3 pages of sweaters and 1 page of blazers! Hello it is November? I know that some of us head South for a holiday and need a cute swimsuit, but the majority of us just want a cute new sweater or blazer to wear to work. yikes!
ReplyDeletePersonally, I shop at JCrew because I want something unique that I can enjoy for several seasons. Although a sale or coupon is nice to have, I pay full price most of the time, in order to be sure I get what I want in a timely fashion. I wouldn't postpone buying something I really want with the hope that I can get a deal, but I am very selective about what I buy from ANY store as it must fit my style and wardrobe. I don't need constant retail therapy, I plan my wardrobe with specific pieces throughout each season. I am a young professional and it is important to wear quality, well-tailored clothing that maintains a stylish appearance throughout the life of the garment. JCrew fits the bill, especially their classics, suiting, coats and footwear.
ReplyDeleteShipping costs cover more than just the cost to ship a package, they include handling, inventory management, warehousing, etc. JCrew shipping charges seem higher than other stores and charging a separate amount for shipping is outdated.
Free shipping would be nice, but if you give it some thought, free shipping is not free as the cost of "free" shipping is added elsewhere. Businesses are in business to make money and to cover "free" shipping they will increase their base prices, or decrease their margins, which means less profit so cutbacks are taken elsewhere, or decrease quality in order to reduce production costs.
It's unfortunate that JCrew is not as affordable as other brands, but I do think that is part of their product placement by design. Consider the number of bloggers who have recently tried to order an item and found that it was sold out, some items on the first day of availability. It seems JCrew is decreasing production volumes to ensure there isn't a plethora of inventory to clear out later. Market saturation is definitely not the goal of JCrew and they appear to be working to ensure they are leaving customers wanting more. I believe their products are so desired that they are courting a loyal customer base, even if it is a small, select group. Time will tell whether the strategy improves the bottom line.
Many people here seems to be speaking of JC as if it was a person. Maybe some should start thinking of it as a corporation again. Nothing Is personal.
ReplyDeleteI have to say that I love J. Crew more than ever. I've always been a big fan of the brand, but I love how they're moving away from the classic, preppy look and becoming more "fashiony."
ReplyDeleteEvery retailer is hurting in this economy, and J. Crew can't expect to be immune from the struggles everyone else is experiencing.
However, it does seem that they deride those customers who focus on the sale section of the website and store. However, they need to remember that sale shoppers can often become "full-price" shoppers if their loyalty is maintained over time.
Also, many customers purchase a combination of sale and full-price items together. Sometimes it takes a sale to get you into the store in the first place, and then you may just fall in love with something full price on your way to the back.
Jeff, maybe if j.crew treated us as people and not as a disposable, unimportant part of their business plan, it would be different. I know you worked for them before, but quit drinking the kool-aid.
ReplyDeleteWhoever was interested in the University Pants a few days ago, they are now on the Fall Sale.
ReplyDeleteAnon @ 8:38 and 10:04 - I agree that JCrew has been showing up everywhere and I think that is why they are reducing inventories. If people are constantly missing out on new arrivals due to a sell out, they will be more likely to purchase at full price next time. At least, I'll bet that is what JC is thinking...
This is slightly off topic but I just received some promos:
ReplyDeleteNeiman Marcus - "PRESENT" for free standard shipping. No miminum. Expires 12/14.
Cole Haan - "BOOTSALE" for 25% off boots through 11/16. You also get free shipping on orders of $250 - no code required (I did a test checkout).
Crabtree & Evelyn - 20% off storewide. Free shipping on orders of $35 with code "FREE35."
Martin & Osa - 30% on all sweaters. No code needed. Free shipping and return til 12/31. No code required either.
Also, if you sign up for emails with Ann Taylor, Ann Taylor Loft or MAC Cosmetics, you get TONS of emails with promos and free shipping codes.
Of course they're hurting a bit. J. Crew's products are all discretionary. People like me have been splurging over the last couple of years. If we're just a little more cautious and postpone some purchases, it shows up fast. I think they'll be okay in the long run and retain customer loyalty because of the quality of the products and designs. Every time I go to J. Crew and then wander over to BR or the Gap, or god forbid H&M, I can't even try things on. They're all too cheap. Why bother? Or Anthropologie, which is all too casual frufru to spend money on.
ReplyDeleteI have to say while I love Jcrew, but I definitely don't plan on buying as much. With the Canadian dollar being so low and less promo codes, I can't justify buying things I don't really need.
ReplyDeleteGot my Holiday catalog in the mail today (nice to know JCrew didn't forget about me since I just got the last one a week ago!!!) and there is really not a lot in there that I LOVE. Of course there are things I like, but nothing I've just got to have right now!! Not exactly a stock-price-booster in my opinion. Yawn.
ReplyDeleteI think J. Crew should have more reasonable shipping costs. I have stuff I want to buy in my cart, but I am holding back because I don't want to pay $17 to have one suit jacket and a cardigan shipped!
ReplyDeleteAlso, I would rather have lower prices than elaborate photo shoots in Europe. I really don't care where they shoot the catalog -- I care about the clothes and what they cost.
A lot of the cardigans seem more pricy this year. Paying nearly $100 for a wool-blend sweater is a bit steep.
I don't want to be totally negative, so I'll say that I am happy with the quality and styles J. Crew is offering.
In this economy, I can't justify buying anything at full price. There is nothing that I love so much that I can't wait for it to go on sale. Sure it's risky b/c the item may sell out but more times than not, it will eventually end up on the sale rack.
ReplyDeleteTo add insult to injury, in addition to having really high shipping costs, J. Crew taxes shipping!! I had no idea they could even do that.
ReplyDeleteI'm glad JC is moving more towards fashion/glam beyond just prep, but, in order to compete in this market, JC must start offering customers some 'real' incentives like free shipping, % off, etc. Most people have a certain amt of $$ they spend on clothes, and when they will shop wher they get the most value (not necessarily the cheapest) ~ BR has really beat JC out on this count, IMO. BR and JC are comparable, but, I like JC styles more, and cut of sweaters more too.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAnon @ November 10, 2008 10:18 PM: Actually, I've never worked for them before & I don't drink Kool Aid, too much sugar.
ReplyDeleteYet you're reading a book upside down. I hardly think I'd take advice from you.
ReplyDeleteI don't mind if JCrew makes unique items just few so that they sell out at full price before making it to sale.
ReplyDeleteBut the problem is, there are a tons of NON-UNIQUE items that are abundant in stock that are still unreasonably high-priced.
Let's be honest. More than 1/3 of JCrew clothing is exact same repetition from previous years. Yet another 1/3 would be those that are small variations to previous year's items. And I see everybody wearing them.
JCrew, please don't tell me that you made only few of those lady coats and cashmere hoodies and university pants. I know you have made tons of them, and you have a lot to get rid of.
And dear affluent JCrew customers who buy everything at full price -- in no doubt you're the most beloved customers of JCrew, but your buying power doesn't seem to be enough to keep JCrew to stride. Partially because you would not want to buy those non-unique items.
Whether JCrew wants to publicly admit it or not, they do rely on less-than-affluent customers A LOT. Otherwise, why bother making dream-fabric items that are just insulting to the novel name of JCrew?
Anon November 11, 2008 12:35 AM: Sure, but reading the book upside down takes practice. Might be helpful in the future.
ReplyDelete20% off select sweater...code: SWEATERS doesn't work on the cashmere cardigan..I tried a mock check out.....bummer.
ReplyDeleteJulie
Another JCrew bait and switch; Says online 20% off ALL women's sweaters and then in fine print it says select full priced sweaters....
ReplyDeleteAre you willing to wait longer than 3 days to receive your parcel if the shipping costs are reduced? I don't think so.
ReplyDeletejust my two cents- i love j.crew (and i agree that more often than not, i find their clothes to be better made than BR). however, in the last year the prices have jumped up a lot at j.crew- i understand the effort to market nice clothes to fairly affluent consumers. however, it's gotten to the point where i rarely buy full price (compared to last year, when i would happily buy "new arrivals" because they were so great that it was worth buying them right away). the clothes are just too expensive. over the past year, i've noticed that it's rare to find a skirt- even a simple skirt- for under $100 whereas last year, i could find some nice garments for that price. i think it's fine to raise the pricetag on apparel, but the fact of the matter is this change has coincided with an american economic crisis, and i think consumers (even affluent consumers) are thinking a bit more about how much they spend. i agree that j.crew should be doing more with coupons (certainly BR is -- and this weekend when i went shopping, i bought from BR because they had a great promotion for cardholders). also, as everyone has noted the final sale selection is really bad. finally, for me at least, the constant web site problem has really turned me off. there have been plenty of times (including yesterday) when i have wanted to shop online but couldn't because the website had that "be back soon" sign. there have also been countless times when items show up on the sale screen but aren't available when i try to add them to my cart, or when i add clothes to my cart only to have them disappear moments later. honestly, i dont want to do battle to online shop-- it should be easy! (look at BR's relatively streamlined, easy-to-navigate website). i dont mean to sound down on jcrew, but i do think they need to think seriously about their pricing, about final sale stuff, and about the new website.
ReplyDeleteBTW BR is better quality than JC, lately I just don't like their styles. JC has see through tees that have to be layered with something else, and thin sweaters. It does not warrant the price tag!
ReplyDeleteI am not at all surprised by this news...I think we have all seen it coming. I am now curious and anxious to see what Mickey Drexler and J.Crew will do to turn this around...we are obviously in a time where *non-essentials* are the first items to be removed from household budgets, so I really think J.Crew needs to think long and hard about their pricing and incentives.
ReplyDeleteI personally feel there ARE other retailers who are equal to and even better than J.Crew when it comes to styles, quality, and pricing...you just have to be willing to take the time to look, think outside the *J.Crew box*, and not *one stop shop*. I actually just purchased from Target: 6 Cardigan Sweaters and 4 Turtlenecks for $121...all of which are equal to, IF NOT better than those I have from J.Crew. I actually wore my Bright Fuschia Victoria Ruffle Cami, with my Black Mossimo Boyfriend Cardi ($10), and Gray/Pink/Black Plaid GAP Perfect Trousers for an allover fantastic look that received many compliments...I don't mind if every item I have on does not have a J.Crew tag...it's all about mixing it up to achieve a fabulous look that is affordable.
I don't think J.Crew should *give away* their clothing, but I do think they should price it more realistically and reasonably for what it is, and where it's made (same place as just about every other retailer).
FFM,
ReplyDeleteI'm curious about the Victoria Ruffle Cami....do you have it dry cleaned as instructed? Funny, I too bought a boyfriend cardi at Target and love it!
ilovesequins: I do intend to have my Victoria Ruffle Cami Dry Cleaned...I normally don't opt for it, but in this case with all the ruffle detailing, I don't want to risk *messing up* how they lie by using Dryel or hand-washing it.
ReplyDeleteBR's cashmere is WAY better than JC's. I saw the cashmere mock-neck zip cardigan in the BR store recently and it was the softest and thickest cashmere I have seen from ANY mass-market retailer. JC's cashmere is very thin.
ReplyDeleteI have noticed the quality decreasing. For example, I paid FP for a shoe t-shirt and was wearing it Saturday when I noticed all the stitching around the arm on the left had come undone. Since I don't sew I will have to take it somewhere to be fixed. Seems like a waste of time and money for a t-shirt, so I won't do it---but for what they charged for it initially it should not have fallen apart on the second wearing.
ReplyDeleteSince I got the shirt in an exchange I do not have the receipt, so I can't even return it. What a bummer.
I agree about the declining quality. Had to sew up a big hole on my brand new merino cardigan. This is not the first time I've been stitching up practically new or brand new sweaters. It's ridiculous considering the price charged.
ReplyDeleteI have also noticed some of the quality decreasing. Pants that have a fallen hem on the first wearing, buttons that fall off - this happens with a lot of brands, but never used to happen with JCrew, buttons that crack and break with normal wash n wear, inconsistent sizing - 32" inseam is not always 32 inches, sometimes it is more like 30".
ReplyDeleteIt's not wonder people want a deal when the quality is questionable.
I mean, "its NO wonder people want a deal when the quality is questionable"
ReplyDeleteFFM: Re. your comments at 8:08, I don't know how others would feel, but if you were so inclined, I would love to see some combos that mix "high/low" in your polyvore sets. I have long been a fan of Target for their more basic pieces and have no qualms about putting together a silk blouse from J.Crew with Levi's and a Target sweater/cardi. To me, it's all in how you wear it :)!
ReplyDeleteBTW, did you all see the stock this AM...$13.95 at one point
I do buy items at full price most often because I am extremely busy and don't have time to visit the B&M or shop around at other stores to find comparable products at a better price. Yes, I can afford to pay full price but that is partly because I work 60+ hours a week at a demanding, although rewarding career. It's great to be able to afford things, but I give up a lot of my free time for work so shopping is not a sport or pleasure for me, more like a means to an end, although I do love new clothes, like most women and men do.
ReplyDeleteIt's true that JCrew offers some items year after year. These are basics and every person should have some sound basics in their wardrobe and build around them. That's why the men's section has "the always list" because these are classic looks, on which you can always rely. It's marketed slightly different in the women's section but items like the Jackie cardigan and shell are classics that can be used season after season, together or apart, mix and match or worn with other items and they will always look good whether with a formal suit or a pair of jeans. JCrew updates the Jackie colours every season and the style every few seasons so it stays current, but it is still a classic nonetheless. People like me rely on these classics time and again - I have five Jackie sets and am always looking for a fresh version to add to my collection, I purchased the regal purple set this fall and I love it. Sure, it would be great to go to Target and get a similar cardigan for a great deal, but how will it look after the third washing, the fifth wearing? I can't take the chance of walking into an important meeting and not looking my best because of some clothing mishap.
I plan my purchases of everything, especially clothing, which can quickly go out of fashion. I buy the best quality I can afford. I use the services of a stylist on occasion to help me stay on track with what will work best for me and my personal style. I understand that it is not possible for everyone to use a stylist's services and to pay full price for things but for those who can shop around and have time for other things, I envy you that pleasure. Some people on this blog say they spend $800 - $1K per month, which is probably more than what I spend on JCrew in an average month, but I am willing to bet the items we purchase are vastly different and that is where JCrew is trying to hit that target market of more customers that will pay full price for fewer expensive, quality items and less discounting required.
It is a valid point that JCrew does not seem to be hitting that target market as reflected in their share price, although many stocks are taking a beating right now. Maybe JCrew needs to change to cater to the lowest common denominator but I doubt they will. They are not interested in courting shoppers who purchase 15 items at 70% off in the final sale. Yes, those people are a means to an end and there is nothing wrong with getting a great deal but such customers are not their target market as the profit margins are wafer thin. It's great that it makes some items for affordable for the masses, but it really does not suit the corporate vision as an upscale retailer.
Re: dry cleaning victoria cami, I have used Dryel on mine, ironed the body and left the ruffles alone, and it still looks like new.
ReplyDeleteCass: Thank you so much for the information about the Dryel and the Victoria Ruffle Cami...it's great to hear that it has been used successfully, so now I will be sure to give it a try. :)
ReplyDeleteJacqueline,
ReplyDeleteI wore my shoe T for the second time this weekend only to find a hole on the side seam. :( I can probably sew it but am annoyed about it.
ffm, no prob. I am a big fan of Dryel. The only things I don't use it on are my business suits and formal dresses.
ReplyDeleteAnon @11:33: Thank you for your post...it's always interesting to hear from customers who can afford to purchase at full price...you are very fortunate. :)
ReplyDeleteRegarding the Target cardigans holding up through wash and wear...I have had much success, in fact, they look the same as my Jackie Cardigans and Shells do after the same amount of use. I actually have a cardigan I purchased at Forever 21 that has been through many, many more washings than my Jackies, and it actually looks BETTER than they do. I don't think more expensive necessarily guarantees an item will last longer (although it SHOULD). I am actually disappointed in how my latest Jackie Cardigans look after 4 washings (on gentle cycle, laid flat to dry), and I am thankful I did not pay full price for them. That is the main reason why this time around I purchased cardigans from Target at a much better price. If they are going to look the same after the same amount of use, then I will opt for the less expensive choice...except when I can purchase the Jackies on a great sale, of course. :)
The following story from the NY Times pertains to this post (or everyone's comments on this post): Goodbye Seduction, Hello Coupons
ReplyDeleteLooks like J Crew should pay attention and offer more coupons/discounts. Even Bloomies and Lord & Taylor are doing it on their high end goods. 20% of sweaters without free shipping pales in comparison to discounts offered elsewhere.
I would put J Crew in the "middle" category of retailers as described in this story, especially given the fact that consumers can find similar styles at lower end stores. And the middle is sinking fast...
FFM - I'm Anon @ 11:33
ReplyDeleteI agree that JCrew isn't necessarily upscale quality all the time. I think you understand where I'm coming from though, they want to be perceived as upscale and are working hard to align with the corporate vision. Whether it serves them well remains to be seen.
It seems apparent they need to address their quality control. I noticed that as more and more JCrew items were sourced from China, the quality began to decrease. That's another reason I am not always partial to the deep discounts - I suspect some items may be reduced due to poor quality materials, tailoring or workmanship. A multitude of a particular style on sale in every size? Hmmm, I wonder why...
FFM I admire your sense of style that I have seen here and on your own blog. Have you ever thought about working as a personal stylist? Mine works on an appointment basis and will come to my office with her laptop or to my home on the weekend and it is several hours very well spent. She works only part time and few office hours, which allows her to be flexible with child care. Because of her extensive purchases for clients she is invited to many private and exclusive shopping events at designer and upscale shops. It sounds like an interesting job if you have some innate fashion ability and can work with demanding people.
I must confess I don't do my own laundry, but on long trips I have had my Jackie cardigans thrown in the hotel laundry more than once and they always come out looking like new.
Funny story about quality control...a few months ago I purchased a super 120s suit from J. Crew to wear to an interview the next day. I didn't even think to inspect it because it was a super 120s suit, supposedly high quality. When I put it on the next day, I realized it had a hole in the outer pant seam! I had to run to Walgreens, buy a little sewing kit, and then sew it up in a Starbucks bathroom on my way to the interview. So not cool! (yet funny in retrospect)
ReplyDeleteFFM @ Anon @11:33
ReplyDeleteI have to agree with FMM about Jackie looking not so good quickly. It might be because my washing machine is not fancy enough to handle the most delicate knits. Anyhow, after screwing 2 Jackies too soon, I am extremely careful with washing Jackies -- I try to wash them less frequently, and also hang dry.
But Anon @11:33 might not have this problem if she's not doing laundry herself, but some other professionals take care of it. Especially if ironed (as all professional laundry people do), then Jackie could look as fresh as new!
I also agree with FFM regarding the Target quality. I wouldn't say everything at target has good quality, but some cotton items are surprisingly good. -- Some of them perform and last at least as good as JCrew really. I also appreciate how Target makes a lot of items that are mixture of cotton and *modal*, while JCrew hardly offers them. I love how modal feels and fits to the body.
re: ss & elizabeth
ReplyDeleteI used to be a loyal shopper, and my closet is still predominately J.Crew, but if I could find a retailer like the J.Crew of old--offering classic, affordable, quality pieces--I'd be ecstatic.
I've never understood why their petites line disappeared from stores. I understand it's a limited market, but it's hard to imagine their losing money if they had at least one store, in a place like New York City, that catered to petites.
I was furious when J.Crew came out with their kids line. I get that J.Crew can make $$$ selling clothes for the kids (and dogs) of affluent families, but in the process, the company has chosen to ignore loyal customers like me.
Anon @3:19
ReplyDeleteOh your story reminds me of this JCrew 100% merino sweater jacket I love, which came with a hole on one of the arms.
Also reminds me of the last year's cashmere double-breasted sweater jacket that I purchased, which had its buttons misaligned, so that when buttoned up, the jacket looked distorted. I think the original price of that cashmere piece was more than $200.
And I hate when JCrew repeats how they use the Lolo Piana's mill for their cashmere -- using the same mill does not mean that they are made of the same quality of yarn. I own a really premium quality cashmere cardigan, and the quality is honestly beyond comparison.
tina m: Thank you for sharing that NYT article. I found it really interesting. :) In fact, I thought the following blurb really echoed the sentiments of a lot of people here:
ReplyDelete"That means brands hovering between cheap and luxe are “in a really tough spot,” Mr. Calkins said. He and other marketing professors pointed to Coach, Macy’s, Target and Whole Foods Market.
“It’s easy to compete on the low end because you just focus on very aggressive pricing and selling a fairly good product,” he explained. “The top will be O.K., too, because there’s always people in this world with a lot of money.”"
kitchy7,
ReplyDeleteYou have a good sense of humor. Even I don't find a hole in an expensive suit funny and it didn't happen to me!
I bought two JCrew cashmere sweaters this season (higher priced collection ones) and both had a sewing defect in the same place on the right side...
on the opposite side of each sweater, on the left side, in the same place, it was knitted/sewn together fine but in the opposite side (right) there was a hole in each!
Really poorly made.
Anon @ 2:40,
ReplyDeleteI think FFM is a professional stylist.
All I can say is glad I sold my JCrew stock a long time ago. I would hate to have it now....
ReplyDeleteFFM
ReplyDeleteThanks for the report on the durability of the Target cardigans. I agree that the recent Jackies haven't held up all that well, even to careful washing...I have several from a few seasons ago that have been through the ringer and look a heck of a lot better than this season's crop.
I have never really been able to make a connection to Target. But I'm a sucker for a good cardigan, and will definitely give the Mossimo a try.
Thanks!
maryw2062: I have two Merona cardigans that have worn at the same rate as the recent Jackies, but were a 1/3 of the price. I wore my most recent Mossimo for the first time on Sunday, and have yet to launder it, but for $9.99 I figure even if it only makes it a handful of times before looking like my Jackies do after 4 times, then I am still coming out way ahead. Shopping at Target can be a true hit or miss...some garments are definitely good quality, while others are complete misses, and the quality is severely lacking. However, I think this can also be said for J.Crew, BR, GAP, etc. :)
ReplyDeleteWell they haven't been getting my money lately because their website is still a disaster area!
ReplyDeleteI still visit jcrew.com more often than I should because I love JCrew, but I always leave the site frustrated and annoyed. I didn't mind the new design, but I remain surprised by their very unprofessional decision to roll out such an unfinished/poorly-working product.
I get kids' and men's clothes in search results that should show me women's clothing only, and I'm unable to do simple things like select all women's clothing exCEPT for swimsuits/loungewear.
And I'm just not inclined to visit their physical stores while their website is still such a disgrace; I prefer shopping online anyway because the stores rarely carry (or are sold out) of my size. It's also frustrating to have items disappear out of your web shopping cart when you try to revisit after a day or two, and at one point I lost a complete order that went through on the web side but disappeared into thin air..
The borked search results bother me the most. They shouldn't be trying to add features and make the site prettier if its basic functions are not working properly.
J.Crew, I really miss you. Get your act together already. < /vent >