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About J. Crew Group, Inc.

J. Crew is a retailer known for its preppy fashions, including jeans, khakis, and other basic (but pricey) items sold to young professionals through its catalogs, websites, and nearly 520 retail and factory stores across the US. Clothing is sold under the J. Crew and Madewell banners; Madewell is a women's-only collection of hip, casual clothes. Outside the US, the retailer boasts 32 stores across Canada, London, Hong Kong, and Paris. The company sources about 97% of its merchandise from factories outside the US, 60% being sourced from China and Hong Kong. Founded in 1947, the company made its name as a catalog retailer. Its first physical store appeared in 1989.


In 2019, J.Crew said it would spin off its Madewell brand into a separate, publicly-traded company. Ultimate parent company Chinos Holdings, Inc. will change its name to Madewell Group, Inc. then make an initial public offering (IPO) of the Madewell business. J. Crew will use the proceeds from the IPO to pay down its more than $1.7 billion debt. After the Madewell spinoff, J. Crew is also slated to be spun off as a separate company. 


The J. Crew brand (comprising J. Crew Retail and J. Crew Factory) generates some 85% of total revenue. About 55% of J. Crew's total sales come from women's apparel sales, while men's and children's apparel sales generate 25% and over 5% of total sales, respectively. Accessories brought in the remainder of the retailer's total sales. J Crew Retail's stores are upscale and located in high-end regional malls, lifestyle centers, and on-street locations.

J. Crew Factory stores are located primarily in large outlet malls and sell a specific line of merchandise tailored after products sold in the previous season at J. Crew retail stores and online.

The company's fast-growing Madewell line offers women's apparel, including a new line of suits, that is priced 20% to 30% lower than J. Crew merchandise. As at August 2016, the company operated 287 J. Crew retail stores, 108 Madewell stores, and 170 factory stores, mostly in the US.

Geographic Reach

New York-based J. Crew boasts some 545 stores in 44 US states and the District of Columbia, with nearly half of its stores located across the states of California, New York, Florida, Texas, Massachusetts, New Jersey, Florida, and Pennsylvania. The US market accounts for essentially all of the retailer's sales.

Beyond the US, it operates two stores in Paris; 18 stores in three Canadian provinces (Alberta, British Columbia, and Ontario); seven stores in London; and four stores in Hong Kong. J. Crew's e-commerce site is active in 100 countries.

Sales and Marketing

The retailer relies on the J. Crew catalog as the primary vehicle for marketing and advertising. The catalog, which drives in-store as well as direct sales, utilizes high-quality photography and art direction, to burnish the J. Crew brand. The company typically spends $40-50 million on catalog advertising, the bulk of its total advertising spend.

Beyond the book, the company relies on online, print, and outdoor advertising. The retailer also offers a private-label credit card that accounts for about 15% of its total net sales. The chain's customers are affluent, college-educated, professional and style-conscious women and men.

The retailer sources its products either through buying agents or by purchasing merchandise directly from trading companies and manufacturers within the US and overseas.

Financial Performance

J. Crew credits its on-target fashion sense and lean inventories for its strong sales growth in recent years. However, the company recorded two consecutive years of falls in fiscals 2016 and 2017.

In fiscal 2017, sales fell 3% to $2.4 billion. Comparable sales fell 7%, with the losses felt entirely in the J. Crew segment. Women's apparel (specifically knits, shorts, and dresses) and accessories were the poorest performers in the year. Falls at J. Crew were partially offset by 14% revenue growth at Madewell, which raked in $341.6 million.

The company has incurred several years of net losses. In fiscal 2017, net loss narrowed to $23.5 million from an eye-watering $1.24 billion loss the previous year, incurred due to write-downs on its physical operations. Cash from operations crept up 2% to $137.8 million due to non-cash adjustments.


J. Crew is under severe pressure as revenue declines, losses mount, and competition from online retailers increases. CEO Mickey Drexler departed in 2017 shortly after creative director Jenna Lyons. The departures are the two most notable in a larger shakeup as the company looks to slim down and catch a favorable wind.

J. Crew's directors are also having to deal with its staggering debt load of around $2 billion. They are aiming to push back a $567 debt repayment due in 2019, giving the company time to return to profitability and stand a chance of avoiding insolvency.

As well as defensive efforts, the company is working to modernize, having been left being in terms of online, speed to market, personalization, and convenience. However, capital expenditure has fallen from $132 million in 2013 to $80 million in 2017.

J. Crew discontinued its bridal product line in late 2016.

J. Crew has been aggressively expanding its store network across the US, adding 34 new retail, factory, and Madewell stores in fiscal 2016 after opening 50 locations during the prior year. Indeed, from 2012 through 2016, the retailer grew its total store base by 43%, from 401 to 575 stores. As part of this expansion, J. Crew has been introducing more of its Madewell and factory stores for price-sensitive shoppers as consumers have become more thrifty in recent years.

In an attempt to boost sales, J. Crew has also been expanding its direct and retail store businesses internationally. The chain opened its first two J. Crew stores in Paris in 2015, and now has seven stores in London and four in Hong Kong.

J. Crew Group, Inc.

New York, NY 10281-1048
Phone: 1 (212) 209-2500

Firm Stats

Employer Type: Privately Owned
CEO: James W. Brett
Chairman: Millard S. Drexler
President and COO: Michael J. Nicholson
Employees (This Location): 115
Employees (All Locations): 14,500

Major Office Locations

New York, NY

Other Locations

Phoenix, AZ
Corte Madera, CA
Gilroy, CA
Livermore, CA
San Diego, CA
San Francisco, CA
Kansas City, KS
New Orleans, LA
Oxon Hill, MD
South Portland, ME
Merrimack, NH
Nanuet, NY
New York, NY
Cranston, RI
North Charleston, SC
San Antonio, TX
Edmonton, Canada