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TPG to Sell 7.5 Million Shares of J. Crew

J. Crew Group Inc. said Wednesday that one of its shareholders, Texas Pacific Group, would be offering 7.5 million shares of the retailer's common stock, and that none of the proceeds from the sale will go to J. Crew.

J. Crew Group Inc. said Wednesday that one of its shareholders, Texas Pacific Group, would be offering 7.5 million shares of the retailer’s common stock, and that none of the proceeds from the sale will go to J. Crew.

The stock sale would reduce Texas Pacific Group’s holdings in J. Crew from 36 percent to 24 percent.

Separately, the retailer said in a Securities and Exchange Commission filing that revenue for the November-December 2006 period rose 19 percent to $291.1 million.

The proposed sale of the common stock is being made “pursuant to a registration rights agreement between [J. Crew] and Texas Pacific Group,” the company said in a statement, adding that TPG granted the underwriters of the sale over 1.1 million shares to cover over-allotments, “if any.” The underwriters are Goldman Sachs and Bear Stearns.

In regard to holiday sales, the company said retail and factory outlet sales rose 17.3 percent to $201.5 million during the November-December period. Same-store sales gained 8.5 percent, which is over a 5.4 percent gain in the prior year.

Direct sales rose 22.2 percent to $81.2 million during the November-December period, and the company said “results for the two months ended Dec. 30, 2006 are not necessarily indicative of the results for the fourth quarter of fiscal 2006 or any other period.”

On the bottom line, J. Crew reaffirmed its prior guidance that calls for earnings per share for fiscal 2006 to be in the range of 95 to 97 cents.