Despite a 5-million-copy cut in catalog circulation, J.Crew’s total direct marketing revenue jumped from $377.4 million in fiscal 2007 to $408.9 million in fiscal 2008, according to papers submitted to the Securities and Exchange Commission.
The company’s stores pulled in $974.3 million, up from $914.8 million. All told, J. Crew generated $1.43 billion during its fiscal year 2008, up from $1.33 in 2007. But the company’s net income dropped from $97.1 million to $54.1 million. The year ended Jan 31.
Granted, much of this was driven by Internet sales. Catalog revenue fell by $13.5 million between the years, while online sales rose by $45 million. Direct sales have risen from 26.8% of the company’s 2006 sales to 28.3% of its 2007 sales, and 28.6% of its most recent year’s revenue.
Online sales amounted to 83%, or around $339 million, of its direct business during 2008, up from 78% in 2007.
Direct operating expenses were up as well, with catalog costs jumping by $5.2 million and direct operating expenses increasing by $15.6 million from 2007’s levels.
The company’s retail revenue rose from $914.8 million to $974.3 million during the same period, and its “other” revenue – which consists primarily of shipping and handling fees derived for its direct business – ticked upward, from $42.5 million to $44.8 million. The company’s most recent fiscal year ended Jan. 31.
Fiscal 2008 saw the company distributing 20 editions of its catalogs, for a total of 44.4 million books mailed, down from 23 editions, and 48.6 million copies, in 2007. Total page count in 2008 was 5.2 billion, down from 5.3 billion.
The company’s customer database consists of 26 million individuals, of which 3.5 million have made a purchase via a catalog or the Internet or a retail outlet within the last 12 months, up from 24.3 million, and 3.2 million, a year ago. The company’s files boast 4.3 million e-mail addresses of customers who have agreed to receive its promotional e-mails, up from 3.6 million a year ago.
The Bean-Counter’s Take: The company’s gone mum on at least one repeat-business metric. According to its 2007 filing, “…approximately 57% of J.Crew Direct net sales were generated by customers who had made a purchase from a J.Crew catalog or on our Internet website in the prior 12 months.” The company did not update this in 2008. And there is an odd discrepancy between the 2007 and 2008 filings: According to 2007’s papers, the company’s Web site logged 95 million visitors. Yet 2008’s papers claim, “Our website logged over 78 million visits…compared to over 70 million in fiscal 2007.” Neither investor relations nor the company’s media relations responded to e-mails asking for clarification.
