J. Crew reports rise in Q1 profit

Apparel, shoes and accessories retailer J.Crew announced its operating income for the thirteen weeks ended April 30, 2005 was $23 million compared to an operating loss of $3 million last year, as the Company continues to benefit from the revitalization of the J. Crew brand.

Millard Drexler, Chairman and CEO, said, "They are pleased with our first quarter results with a comp store sales increase of 37 percent and significant growth in our Direct business. Our continuing focus on quality, style and design, along with endless attention to our customers' needs, is reflected in J.Crew's performance."

Net income for the first quarter was $5 million compared to a net loss of $24 million in the prior year. Consolidated revenues for the first quarter increased 45 percent to $211 million from $146 million in the comparable period last year. Retail net sales (including Factory) increased by 40 percent to $146 million from $104 million last year due primarily to a comparable store sales increase of 37 percent. Net sales of the Direct business (Internet and catalog) increased by 59 percent to $59 million as compared to $37 million.

J. Crew Group Inc is a leading retailer of men's and women's apparel, shoes and accessories. The Company operates 157 retail stores, the J. Crew catalog business, jcrew.com, and 43 factory outlet stores.