NEW YORK — J. Crew on Wednesday said it is extending its tender offer and consent solicitation.
The offer, in connection with its 9 3/4 percent senior subordinated notes due 2014, will expire at 9 a.m., Eastern Daylight Time, on May 1, unless it is further extended. Meanwhile, some financial sources said while they still expect an initial public offering from the preppy catalogue and retail firm this year, an IPO probably wouldn't materialize until possibly the second or third quarter.
Financial sources said the new Crewcuts concept for boys and girls that will be unveiled later this month, and another retail concept that J. Crew is developing would bolster the IPO "story" to potential investors. Some of those sources said bankers working for J. Crew had heavily promoted the Crewcuts concept late last year before the company, without any reason, pulled its planned IPO and postponed it until sometime this year.
The Crewcuts summer collection will arrive March 31 in a shop-in-shop format at 10 J. Crew stores, ranging from 600 to 1,200 square feet. In addition, a 2,000-square-foot freestanding Crewcuts store, with 1,400 square feet of selling space, will open at the NorthPark Center in Dallas on April 25. The other retail concept in development is completely dissociated from the J. Crew name, with a different price point and target market than its core J. Crew business.
In the latest reporting period, third-quarter operating income for the 13 weeks ended Oct. 29 increased by 69 percent to $22 million from $13 million in the year-ago period. Income rose to $3 million compared with a $10 million loss in the prior year, due to the higher operating income and a $4 million decline in interest expense from debt refinancing in the fourth quarter of 2004.
Revenues for the three months rose 8 percent to $223 million from $206 million in the year-ago quarter. Store sales, including J. Crew's 158 full-price units and 45 outlets, gained 5 percent to $161 million, while same-store sales were up 3 percent. Direct sales, which include Internet and catalogue results, spiked 19 percent to $56 million compared with $47 million in the prior year period.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)