J. Crew Q3 revenue up 11 percent

REPORT_ For the third quarter J. Crew revenues increased 11 percent with comparable company

sales increasing 4 percent. Store sales increased 7 percent. Direct sales increased 21 percent. Gross margin was 43.9 percent compared to 47.3 percent in the third quarter last year. Selling, general and administrative expenses were 30.5 percent of revenues compared to 33.9 percent of revenues in the third quarter last year. Operating income was 13.4 percent of revenues. Inventories and inventories per square foot increased 20 percent and 11 percent respectively.

For the nine month period revenues increased 10 percent with comparable company sales increasing 3 percent. Store sales increased 6 percent. Direct sales increased 19 percent. Gross margin was 43.3 percent compared to 46.7 percent in the first 9 months last year. Selling, general and administrative expenses were 31.1 percent of revenues compared to 33.3 percent of revenues in the first nine months last year. Operating income was 12.2 percent of revenues compared to 13.4 percent of revenues in the first 9 months last year.