Crew Turnaround

J. Crew Group (New York) has reported a first quarter operating income of $23 million for the 13 weeks ended April 30, 2005. A year ago, the specialty apparel marketer was suffering through a $3 million loss for the same period.

“We are pleased with our first quarter results with a comp-store sales increase of 37 percent and significant growth in our direct business,” said chairman and ceo Millard Drexler. “Our continuing focus on quality, style and design, along with endless attention to our customers’ needs, is reflected in J. Crew’s performance. I might add that the scarcity of our merchandise in last year’s first quarter also helped contribute to this quarter’s strong comp performance.”

Retail net sales (including factory) increased by 40 percent in the quarter. Net sales of the direct business (Internet and catalog) increased by 59 percent. Net income was $5 million compared to a net loss of $24 million in the prior year.