I have to admit, Jenna Lyons has done an amazing job over the years. It makes sense that J.Crew would want to keep her. Although I am curious what the future holds for J.Crew. Jenna Lyons has been transforming the company over the years– from updating great basics to introducing fashion-forward pieces. It will be interesting to see how they maintain the balance going forward. {Especially since the Spring 2010 collection contained more fashion forward pieces than updated basics (refer to this post).}J.Crew Rewards Designer
By Elizabeth Holmes
October 29, 2009
Jenna Lyons, creative director of J.Crew Group Inc., received a special bonus of $1 million this week, according to a filing made with the Securities and Exchange Commission.
Ms. Lyons's design aesthetic has been credited for the recent success of the New York clothing company. Stronger-than-expected sales in October prompted J.Crew last week to nearly double its outlook for fiscal third-quarter earnings to between 54 and 59 cents a share, up from 30 to 33 cents a share. J.Crew's casual styles-embellished T-shirts, frilly blouses and chunky jewelry-have been widely copied in the mall apparel space.
The bonus is intended to keep Ms. Lyons at J.Crew for the next several years. The terms specify that she must repay the bonus in full if she leaves within two years or repay half of it if she leaves after that but within four years. The company declined to comment.
The retail industry has been hit by a sharp contraction in consumer spending. J.Crew, like its competitors, has spent the last year cutting costs, including reducing inventory and slowing store openings. In February, it eliminated 95 positions in its corporate office and distribution centers. At that time, it also suspended 401(k) contributions and eliminated merit-based wage increases for all employees.
Neither Ms. Lyons nor any of the company's other four top executives received bonuses last year. Ms. Lyons received a compensation package, including stock awards and option awards, of $1.9 million last year, according to an April proxy filing.
Ms. Lyons joined the company in 1990 as an assistant designer, following an internship with Donna Karan. She became its creative director in December 2007 and has helped steer the brand to new levels of popularity. It has become a favorite with the White House, including specially designed clothes for first daughters Malia and Sasha Obama for their father's inauguration. J.Crew is also widely worn by celebrities, including Katherine Heigl.
Ms. Lyons has become something of a spokeswoman for the brand and is regularly featured in its marketing. "Jenna's Picks," or items she recommends, are a regular feature on the J.Crew Web site. Rival AnnTaylor Stores Corp. recently added a similar feature, dubbed "Lisa Loves," for its head designer, Lisa Axelson, to its Web site.
Ms. Lyons was inducted into the Council of Fashion Designers of America earlier this month, alongside well-known designers from the luxury space including Alexander Wang and Jason Wu.
This article also mentions retail competitor Ann Taylor copying certain marketing elements. I have to say, as of lately I am loving what I am seeing from Ann Taylor and Ann Taylor Loft! It reminds me of the J.Crew a few years ago in terms of styling (and that is a compliment!)
Thoughts on the article? Disagree or agree with J.Crew's decision to retain Ms. Lyon's services?
