J. Crew Group Inc. has revised its net loss figures upward to account for a change in its inventory distribution.
The firm increased its fourth-quarter net loss by $9 million to $20.7 million, raising its annual net loss for fiscal 2002 to $40. 6 million. The company had taken additional inventory reserves of $9 million as of Feb. 1.
That $9 million represents additional inventory reserves that were on the books as of Feb. 1.
Instead of carrying over unsold inventory for sale, the company has decided to clear the merchandise at the each of each selling season. It is doing through this through its factory stores, online promotions and warehouse sales.
CFO Scott Rosen said in a statement that “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.”
Revenue totaled $241.8 million for the quarter, down from $246.7 million last year. Annual revenue fell by roughly $11 million to $766.4 million.
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