"
Thanks!" to
Jessica who kindly shared the following article from WWD with us (click
here to read in its entirety):
J. Crew Profit Shrinks 90% in Q4
By Vicki M. Young
March 22, 2011
In what is likely to be its last annual regulatory filing, J.Crew Group on Monday said fourth quarter income fell 90 percent.
The specialty chain, which became private on March 7 upon the completion of its acquisition by affiliates of TPG Capital and Leonard Green & Partners, said income for the three months ended Jan. 29 fell to $4 million, or 6 cents a diluted share, from $40.4 million, or 61 cents, in the same 2009 quarter. Total revenues rose 2.4 percent to $471.5 million from $460.6 million. Same-store sales for the quarter were not reported in the filing.
The annual report, ...gave no details on why profits declined so sharply although company executives had warned last month that the retailer faced significant challenges.
For the year, income fell 1.5 percent to $121.5 million, or $1.84 a diluted share, from $123.4 million, or $1.91, in 2009. Total revenues rose 9.1 percent to $1.72 billion from $1.58 billion. The company said same-store sales rose 4 percent for the year.
The firm said that by operating division, revenue from its stores rose 7.4 percent to $1.19 billion from $1.11 billion, while that from its direct channel gained 14.6 percent to $490.6 million from $428.2 million.
By segment category, the men’s business grew in 2010, while the women’s category declined. Women’s was 62 percent of the business compared with 65 percent in 2009.
Very interesting news! I am honestly shocked that the last quarter's income fell 90%.
In all honesty, I can understand why there is a drop (although not that steep!) My own shopping in the last two months has dropped significantly. During the holiday season, I had been calling my personal shopper practically everyday. Now, not so much. Even the latest Mickey Green Card is not enough to get me to buy like I use to at their stores (and I am trying, but I can't seem to make the $150 minimum!)
My closet is just so full of J.Crew items that it's hard to justify buying another striped tee (although, they are so pretty!) The few pieces I do buy seem to come from eBay (finding those J.Crew items from seasons past that I missed out on). I have even been upping my visits to other stores, like Anthropologie and Banana Republic (they have been running some amazing sales, which always get me!)
But back to the article... I am
not at all surprised that the men's collection is doing well. Their line has been consistently offering great classic styles with updated cuts.
Bravo Frank! Here is to hoping J.Crew can turn things around for the ladies collection! :)
What are your thoughts on the latest financial news? Can you believe that J.Crew income for their last quarter fell 90%? What do you think J.Crew can do, to turn things around?
"Thanks!" to Alice who shared the following exciting news: Madewell's South Coast Plaza Store in Costa Mesa is opening Tuesday, March 29th! She also shares that customers in the area are being sent postcards with an offer of 15% off the first purchase (good through April 12th).
