J.Crew Presentation
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J.Crew, founded as a mail order catalog in 1983, has evolved into a significant player in the U.S. apparel industry, experiencing considerable growth under the leadership of CEO Mickey Drexler since 2003. The company has shifted from a struggling retailer with significant debt to a privately held entity with strong revenue and cash reserves, following a successful IPO and recovery during the recession. Trends such as a renewed interest in American-made, classic products have bolstered J.Crew's market relevance and profitability.
J.Crew Presentation
- 1. J.Crew CompanyRyan LagasseCorporate Communications
- 2. U.S. Apparel Industry HistoryBegan with menswear in 1800’s19th century Gold RushLevi StraussJeans “easily transformed into utilitarian work trousers”Womenswear picked up in 1900’sFirst influenced by Parisian fashionIsolation of WW1&2 created confidence in “correctness” of American lifestyleToday U.S. retail industry has revenue of $150 billion
- 3. J.Crew Company HistoryStarted as mail order catalogue in 1983Popular Merchandise, Inc.End of 80’s showed decline in mail order cataloguesSouth Street Seaport Flagship Store opened 1989Success was great3 more stores opened nationwideEnd of year revenue $320 million327 J.Crew stores in U.S. to date
- 4. Brick & Mortar vs. Direct
- 5. CEO: Mickey DrexlerBrought on in 2003Previous CEO of The GapCredited with 1990’s revivalCoined the “retail therapist”Extremely involved in all aspects of companyCreated an environment of “perceived exclusivity”Maintaining qualityLess-than-designer price pointOffering timeless classics with a twist
- 6. CEO: Mickey DrexlerIn 2005, the company turned its first profit in five years, and between 2003 and 2008 revenues rose 107 percent. In 2006, Drexler presided over a very successful IPO. In 2009, revenues ($1.57 billion) exceeded pre-recession levels and same-store sales climbed 11 percent. Profits jumped 40 percent. When Drexler took up the reins in 2003, J. Crew had $609 million in debt and 196 stores. Today, it has 321 stores, less than $50 million in debt and $298 million cash on hand.-Wall Street Journal
- 7. Key Competitors2010 Annual Sales2010 Net Profit MarginLands’ EndThe GapL.L. Bean
- 8. Current Company StatusPrivately held as of March 1$3 billion buyoutStockholders received $43/share“It would provide greater flexibility and allow for planning unburdened by the demands of a public company's quarterly earnings schedule” TPG Capitol: 71%Leonard Green & Partners: 19%Internal: 10%
- 9. Americana TrendWhat is it?
- 10. Americana TrendHow did it happen?The recession prompted trendsetters to back away from avant-garde and revisit classic, durable goods made in America. Suddenly, fishermen and oil riggers are walking in the same boots as fashion-conscious advertising executives. -KSTP.com
- 13. Industry ImpactAnnual Statistical Analysis of the U.S. Apparel and Footwear Industry
- 14. Industry ImpactU.S. production of apparel declined 41% in 2008
- 15. Clothing imports reached a record level of 97%
- 16. In the first 3 months of 2009 31,900 jobs were lostJ.Crew Recession Strategy
- 17. J.Crew ImpactTotal Revenues increased
- 18. Gross profit increasedNet Income increased
- 19. J.Crew Impact$298,107 cash on hand
- 20. J.Crew Impact
- 21. Future Outlook for J.CrewAmericana trend made J.Crew more relevantIncreased consumer awarenessObama marketingInternational expansionGoing private allows for greater fluctuation in numbers Media/shareholders can’t commentIncreased market shareIncreased profit margin
- 22. Thank You