J.Crew Group Inc. (New York) revised its net losses for its fourth quarter and fiscal year 2002, both ended Feb. 1, 2003.
The reported net loss has been increased $20.7 million for the fourth quarter and to $40.6 million for the fiscal year. On March 24, 2003, when Crew first released its financial results, losses were announced at $11.7 million for the quarter.
The revision occurred as a result of the company's decision to modify its strategy on the disposition of inventory to achieve inventory clearing at the end of each selling season. Under its previous disposition strategy, excess prior season inventories would have been carried over for sale in subsequent seasons. Under its new strategy, it will try to get rid of excess inventories through factory stores, Internet promotions and warehouse sales, meaning the goods will ultimately sell for less.
“This change in strategy will enable us to clear excess inventories in season and to maximize our offering of current season merchandise in all channels,” explained cfo Scott Rosen.