J. Crew Group Inc. reported an 8.8% decline in direct net sales and a 15.5% drop in store sales for the fiscal year ending Feb. 2.
Revenues were $778 million for fiscal 2001, compared to $826 million for fiscal 2000. Pre-tax earnings were $53.3 million compared to $83.4 million in the previous year. The net loss for the fiscal year was $11 million, compared to net income of $11.9 million for 2000.
Revenues for the fourth quarter of fiscal 2001 were $246.7 million compared to $286.7 million last year. Direct net sales for the New York-based company dropped 12.6% in the quarter, while retail store sales decreased 18.7%. Pre-tax earnings 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.
In a statement, Mark Sarvary, CEO, blamed the results on “the challenging economy, weak retail market and merchandising mistakes,” noting that the company had taken steps to respond to these issues and “manage the business more conservatively.” These steps included lowering inventories and making changes within the merchandising and design teams.
