Earnings
J.Crew Rides Obama Coattails to Higher Sales
Jeanine Poggi
05/28/09 - 05:37 PM EDT
J.Crew's(JCG Quote) free publicity from the First Family is still helping drive sales even in the volatile market.
Michelle Obama and the presidential daughters have been spotted wearing J.Crew to some of the biggest White House events, including Inauguration Day -- a product-placement of the absolute highest order, and one that has stirred intense media and consumer attention.
And while the company's earnings dropped 33% in the first quarter to $20.4 million, or 32 cents a share, its sales managed to inch up 1.5% to $345.8 million. Analysts expected the company to earn 11 cents a share.
The news sent share soaring 13% in after-market trading to $23.12.
Total same-store sales also increased 2%. The company, at the reins of CEO Millard Drexler, continues to tap into ways to remain competitive and creative in the consumer squeezed market.
Granted, the company has had to resort to markdowns, just like everyone else in the sector, but gross margins only saw a small hit, decreasing to 42.2% of revenues from 46.9% of revenues last year.
Looking ahead, the company expects second-quarter earnings in the range of 8 cents to 12 cents a share.