Nothing But Respect for J. Crew Management

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

Comments

[Stephen Ros...:]

direct sales accounted for 90 million out of 330 million revenue, not 79%. store sales are still very much a factor in this company's prospects.

2007 Dec 02 07:03 PM