In what is likely to be its last annual regulatory filing, J. Crew Group on Monday said fourth-quarter income fell 90 percent.
This story first appeared in the March 22, 2011 issue of WWD. Subscribe Today.
The specialty chain, which became private on March 7 upon the completion of its acquisition by affiliates of TPG Capital and Leonard Green & Partners, said income for the three months ended Jan. 29 fell to $4 million, or 6 cents a diluted share, from $40.4 million, or 61 cents, in the year-ago quarter. Total revenues rose 2.4 percent to $471.5 million from $460.6 million. Same-store sales for the quarter were not reported in the filing.
Included in both quarterly and full-year results were $20 million in pretax selling, general and administrative costs incurred in connection with J. Crew’s acquisition.
The annual report, filed with the Securities and Exchange Commission Monday, referred to a “softening of the sales trend in both stores and direct, primarily in women’s apparel, in the second half of the year” and indicated that the company expects a continuation of weakness “at least through the first quarter of fiscal 2011.”
For the year, income fell 1.5 percent to $121.5 million, or $1.84 a diluted share, from $123.4 million, or $1.91, in 2009. Total revenues rose 9.1 percent to $1.72 billion from $1.58 billion. The company said same-store sales rose 4 percent for the year.
The firm said that by operating division, revenue from its stores rose 7.4 percent to $1.19 billion from $1.11 billion, while that from its direct channel gained 14.6 percent to $490.6 million from $428.2 million.
By segment category, the men’s business grew in 2010, while the women’s category declined. Women’s was 62 percent of the business compared with 65 percent in 2009.