J. Crew Group, Inc. today announced financial results for the fourth quarter and fiscal year ended February 2, 2002.
Revenues for the fourth quarter of fiscal 2001 were $246.7 million compared to $286.7 million last year. The fourth quarter of fiscal year 2000 consisted of fourteen weeks compared to thirteen weeks in fiscal 2001. Comparable store sales decreased 18.7% in the fourth quarter, while net sales in J. Crew's Direct business decreased by 12.6% for the comparable thirteen-week period. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $31.6 million compared to $49.3 million in the fourth quarter of 2000 and net income was $6.7 million compared to $17.6 million.
For the fifty-two week period ended February 2, 2002, revenues were $778.0 million versus $826.0 million in the fifty-three week period ended February 2, 2001. Comparable store sales declined 15.5% in the fifty-two week period, while net sales in J. Crew's Direct business were down 8.8% for the comparable fifty-two week period. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $53.3 million for fiscal year 2001 compared to $83.4 million in fiscal year 2000. The net loss for fiscal year 2001 was $11.0 million compared to net income of $11.9 million last year.
"The challenging economy, weak retail market, and merchandising mistakes on our part led to disappointing results in 2001," said Mark Sarvary, Chief Executive Officer. However, we took actions early in the year to respond to these issues and manage the business more conservatively. We cut costs, lowered inventories and made changes within our merchandising and design teams. Despite the difficulties, we made important progress operationally, improving our supply chain and enhancing our infrastructure through key systems upgrades. We also opened 34 new J.Crew stores, funded through cash flow."
Mr. Sarvary continued, "We are listening to the customer, re-directing our merchandising efforts and remain focused on improving comp store sales. We expect to make gradual progress throughout 2002 toward delivering more compelling assortments and winning back the J.Crew customer."
J. Crew Group, Inc. is a leading retailer of men's and women's apparel, shoes and accessories. As of February 2, 2002, the Company operated 136 retail stores, the J. Crew catalog business, jcrew.com, and 41 factory outlet stores.
Fourth Quarter Conference Call
The Company's fourth quarter investor conference call will be held today, March 27, 2002 at 11 a.m. eastern time. The event will be available through a live audio webcast at http://www.vcall.com/, and will be archived for one week. A telephone replay also is available at (888) 258-7854, reference #09310, through April 3, 2002.
Certain statements herein are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending or preferences in apparel, the performance of the Company's products within the prevailing retail environment, trade restrictions, political or financial instability in countries where the Company's goods are manufactured, postal rate increases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company's Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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