J Crew (JCG) produced a really nice quarter. The company raised guidance, in the mist of a blood bath retail environment. There was nothing not to like.
Most impressive: 79% of revenue comes from the ‘direct biz’, with a growth of 36%. (In other words, same store sales from JCG is becoming irrelevant.)
My only Negative: Inventories increased by 10% from the last quarter to the current.
As for the chart… JCG jumped in Friday trading and thereby broke from its negative trend:
Given Bernake hinted at more rate cuts, the market maybe up tomorrow, giving some wind to JCG’s back.
Got nothing but respect for this management team.
Disclosure: Long JCG