J. Crew Group Inc. has its eye on continued investment in the company and “long-term growth” following solid fourth-quarter and 2012 results.
That message came from company officials in a conference call Thursday, after Wednesday’s report that earnings for the quarter ended Feb. 2 rose 18 percent to $70.4 million, from $59.5 million a year ago, on an adjusted earnings before interest, taxes, depreciation and amortization basis.
Comparable sales in the fourth quarter rose 11 percent. And for the year, J. Crew cracked $2 billion in revenues for the first time, reporting sales of $2.23 billion, up 3 percent on a comparable basis.
“We are pleased with our fourth-quarter performance, which concluded a strong year of growth for our company and a positive response to our assortments,” said Jim Scully, J. Crew’s chief administrative officer, during the call.
Capital expenditures are seen at between $135 million and $145 million for fiscal 2013, compared with $132 million last year. Among the key areas of investment are direct, including international expansion of jcrew.com, and new marketing capabilities.
There is a shift in the spend to reduce catalogue expenditures while investing more in digital marketing and advertising as well as customer research and customer segmentation tools, though Stuart C. Haselden, chief financial officer, noted, “We do believe the catalogue continues to drive online and in-store sales.”
via: wwd