Direct Sales Pace J. Crew’s Fortunes
Catalog and Internet sales growth outstripped same store increases for J. Crew Group Inc. during both its most recent fourth quarter and full year. While the quarter and the year both included an extra week’s sales, the sales gains were much higher than a single week’s revenue would explain.
For the fourth quarter, the New York-based clothing retailer realized $366.7 million, up from $289.9 million in fourth quarter 2005. While same-store sales rose by 8%, direct sales jumped 43%, to $113 million. The company also reported net income for the quarter of $44 million, compared with a net loss of $9.2 million.
For the year, direct sales were up 22%, to $308.6 million, while comparable-store sales rose 13%. Overall, the company generated $1.15 billion in revenue, a 21% increase over 2005’s levels, due in part to operating 24 more stores at the end of 2006 than it did at the end of 2005. The company’s net income stood at $71.6 for the year, compared with a loss of $9.7 million in 2005.
The company did not offer any reason for its increased direct marketing fortunes.
