Friday, March 14, 2008

J-Crew Revenue Rises but Profits Fall

The WSJ reported that J-Crew’s revenue rose to $399.9 million and same store sales remained flat. Additionally their gross margin rose .5% to 41.3%. Fashiontary thinks they have been very successful at wooing customers and increasing sales with new fashion and unreasonable prices. Even with their president abruptly leaving, they have remained a stable performer even though their net income fell by 43% to $25 million. But, prospects remain high for this company and analysts predict full-year earnings to be around $1.85 - $1.87 per share above forecasts of $1.52 per share.

J-Crew has made a remarkable transition from “preppy” catalog retailer to specialty store extraordinaire for the chic business professional. Fashiontary loves J-Crew and is fascinated with their respectable fashions and quality. The company has outperformed most when it comes to the unpredictable consumer shopping and even added a more expensive “collection” line where they compete with brands like Theory. Go J-Crew!