NEW YORK — J. Crew Group Inc. reported that net income for the fourth quarter ended Jan. 28 increased more than threefold to $15.1 million from $4 million in the year-ago period.
The net was pushed down in the year-earlier period due to purchase accounting and costs associated with the $3.1 billion acquisition of the firm by TPG Capital and Leonard Green & Partners in March 2011, taking the company private. Total acquisition costs were $65 million, including $20 million that was recorded in the fourth quarter of 2010.
Fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization advanced to $59.5 million from $51.6 million a year earlier, about a 15 percent gain. That’s considered a better indication of how the company is actually performing since it erases the impact of acquisition, purchase accounting and other items.
Revenues increased 13 percent to $530.9 million, with comparable-store sales increasing 6 percent. Direct sales increased 10 percent to $170.8 million. Gross margin increased to 37.8 percent from 37.4 percent. Gross profit this year reflects the impact of purchase accounting of $2.7 million.
For the year, adjusted EBITDA slipped to $282.2 million from $288.2 million. Pro forma net earnings fell to $51.5 million from $121.5 million in fiscal 2010. Revenues increased 7.7 percent to $1.85 billion from $1.72 billion.
The company also reported compensation for its top executives. Chairman and chief executive officer Millard “Mickey” Drexler earned his usual $200,000 but has options valued at $11.32 million as well as $1.67 million in other compensation. Drexler, 67, signed a new agreement extending his employment through March 7, 2015, subject to automatic one-year renewals. Drexler also has an opportunity to earn an annual bonus award, with a target opportunity of $1.2 million, based on performance metrics set by the board.
When Drexler joined the company in 2003, he invested $10 million of his own money to buy a substantial equity stake. He also paid $1 million for a grant of stock options and a grant of restricted stock. His annual base salary was set at $200,000 in 2003 and has not increased.
With the acquisition, Drexler contributed 2,287,545 shares worth about $99.5 million in exchange for a stake in J. Crew’s new parent company. Drexler owns between 8 and 9 percent of the company’s shares.
President and executive creative director Jenna Lyons received a salary of $1 million, and received stock options valued at $2 million.
Stock and option awards are reported due to Securities and Exchange Commission requirements. The compensation recorded in these categories was not necessarily realized.
@moncler unveiled its latest project, #MonclerGenius, yesterday at Milan Fashion Week. The Italian outwear maker gave show-goers a preview of the monthly collections – which were created by eight designers and creative talents including Pierpaolo Piccioli, Simone Rocha, Craig Green and more – that will start rolling out in the summer.
In honor of Rihanna’s 30th birthday, we took a look back at an interview with the Barbados-native when she was just 18 years old. Here, she talked about her second album, “A Girl Like Me” in 2006. “I want to be me. I want people to fall in love with who Rihanna is, and that’s why I want the album to be about me so people can really find out who this girl Rihanna is, because they only know the ‘Pon de Replay’ girl.” Fast forward 12 years, and she’s released six more albums and has become a powerhouse in both the fashion and music industries. Happy birthday, @badgalriri 🎈(📷: Pavel Antonov) #wwdarchive