J. Crew Group Inc. estimated full-year earnings would be in line with Wall Street estimates but reduced sales expectations for the fourth quarter, according to a regulatory filing with the Securities and Exchange Commission released Thursday.
The apparel retailer, which is expected to be acquired by TPG Capital and Leonard Green & Partners for $3 billion, anticipates annual earnings of $2.08 to $2.13 a share. Analysts were looking for EPS of $2.11, Yahoo Finance said.
The projection implies fourth-quarter EPS of 30 cents to 35 cents for the fourth quarter, versus the analyst consensus estimate of 34 cents.
For the fourth quarter, J. Crew projected same-store sales to decline in the midsingle digits versus its previous outlook of a low-single-digit decline. Inventories are expected to increase in the midteens on a percentage basis versus the comparable period last year.
The firm reaffirmed its gross margin outlook, forecasting a decline of 600 to 700 basis points compared with the fourth quarter of 2009.
The company said that in the first two months of the fourth quarter, through Jan. 1, comparable-store sales decreased 3.2 percent, on top of a 16.7 percent increase in the comparable months of fiscal 2009. Internet and phone sales grew 11.8 percent to $126.1 million. Direct sales were up 11.7 percent in the comparable year-ago period.
The update comes one day after J. Crew extended the “go-shop” period by one month, until Feb. 15, and trimmed the size of the termination fee tied to its acquisition.
Shares of J. Crew Thursday closed at $43.42, down 3 cents or 0.1 percent.
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)