JCA Blog Mentioned in NYT {Woot! Woot!}

A big "thanks!" to dinagideon (in this post) & Jennifer, who let us know about the following article from the New York Times (click here to read in its entirety) with a special shout-out to a certain little blog...

J.Crew Helps Preppy Go Euro
By Virginia Heffernan
July 5, 2010

J.Crew published its first catalog in 1983, three years after Lisa Birnbach’s “Official Preppy Handbook” codified a peculiar style of comportment and dress associated with rich enclaves on the East Coast. By the time J. Crew showed up — a full-fledged lifestyle manual that seemed to put on sale the whole preppy modus vivendi — Birnbach’s book was enshrined as both satire and tip sheet. J.Crew came to function the same way: with its anodyne clubby name and clothes that ripped off L.L. Bean, Brooks Brothers and J. Press, J.Crew seemed to spoof the preppy style while making it available.

Or maybe it spoofed the preppy style by making it available. For the set that embraced the Boston mentality — “We don’t buy our hats; we have our hats” — the idea of having to shop for what should be entitlements initially seemed embarrassing.

But now that people who look down on shopping are as rare as people who inherit pearls and cable-knit cashmere, nearly everyone has embraced J.Crew. The company, which went public three years ago, now boasts the endorsement of Michelle Obama; more than 300 bricks-and-mortar stores, including some that sell limited-edition items in places like Aspen and Malibu; and a thriving e-tailer and online entertainment business at jcrew.com.

Ever a zeitgeist company, J.Crew does the bulk of its dream-weaving — refining and disseminating the house aesthetic — at jcrew.com, which is lush with images, videos and distinctive “J.Crew haikus,” as staff members once dubbed the brand’s copywriting style. (“A ruched strapless bodice with metallic float threads woven into gauzy silk are attached to a bias-cut slight A-line skirt that hugs the body in all the right places,” read a recent online description.)

The re-emergence in pop fashion of the blue-and-white-striped sailor shirt has been a blessing to J.Crew’s Web site this summer. The shirt is sporty and thus not un-American, while also signifying “Paris,” a new concept jcrew.com has been audaciously colonizing. The site twinkles with references to France and haute couture, and recently it has positioned dissipated and mysterious Euro-type models in the slots that used to be reserved for “J.Crew models” — fresh-faced, wholesome strawberry blondes.

Not long ago, a bed-headed brunette appeared wearing nothing but a sailor shirt in a silent and almost-still video on the J.Crew homepage. She was fiddling with her hair, bored, as if waiting for her video to start. It was an inspired art-tech joke: the short stretch of video served as a double for a still image, disarming users who might have balked had the video, which came up unbidden, been more kinetic. Pressing “play” on this video of the girl — who, half dressed and waiting, was clearly looking for adventure — was the only gallant thing to do.

Sexualizing a model’s image by inviting the viewer to animate her, and thus implicating the viewer in the lady’s pleasure, is an extremely sophisticated use of online video for e-commerce. Once the user has got the half-naked girl to move, why not go ahead and buy her clothes?

The song that plays during the video says something in French about love and freedom. I first took it for a Carla Bruni song, in the spirit of “Le Plus Beau du Quartier,” which played in H&M’s bellwether online video, starring Emmanuelle Béart, in 2006. A J.Crew fanblog revealed, however, that the song was a company original. (The song, “To Be Free,” is sung by Guylaine Vivarat.) A commenter pointed out that it seemed like “a knockoff of Carla Bruni’s ‘L’Amour,’ ” and that seemed right.

Voilà — an e-tailer finds itself in the content-production business. Happens all the time. Because of customer requests, the company said that it would make the catchy chanson available — free — from J. Crew’s Facebook page. It seems absolutely integral to the new and improved J.Crew lifestyle, which recently featured a specific kind of heroine who, though eminently visible now in American cities, is underrepresented in our literature and film: a European in the United States.

The stateside European, in J.Crew’s imagining, wears all our usual American stuff — shorts, T-shirts, cargo pants, polo shirts — but has no use whatsoever for the simplicity and androgyny that used to be hallmarks of preppy. Under the inventive vision of Jenna Lyons, J.Crew’s revered executive creative director, as well as Mickey Drexler, the C.E.O., the clothes and the Web site have become ruffly, silky, beaded and sequined. Every outfit seems slightly hacked — cut up and embellished by a home tailor. You don’t envision someone in J.Crew playing lacrosse anymore; they seem more likely to be philosophizing and seducing. “I have a hard time with the word ‘preppy,’ ” Lyons told Style.com not long ago. “It’s very coastal, and it leaves out a lot of Americans who aren’t yachting or going to the beach club.”

This summer, then, what is the new J.Crew ideal? Not the East Hampton WASP, not anymore. Rather, it’s the sultry au pair watching the children. In sequins.

Points of Entry: This Week's Recommendations
SECONDARY EDUCATION
A sequel to “The Official Preppy Handbook”! If you didn’t get the memo the first time — or if you’re shaky on the role of rehab and texting in la vie preppy— hold your polo ponies:“True Prep,” by Lisa Birnbach with Chip Kidd, is forthcoming from Knopf.

WHEN WASPS BLOG
Those days of preppy names in print only at birth, marriage and death are long over. Now they can’t stop . . .musing. For modest laughs: To the Manner Born, WASP 101, Tickled Pink and Green, Muffy Martini, Pink Washingtoniette, 2PreppyGirls and Summer Is a Verb.

THE CREW
For deals, reviews, insights and general adoration of a clothing company, J. Crew Aficionada is a site to behold: jcrewaficionada.blogspot.com.

I love the tiny shout-out to the JCA Blog at the very end. {yey!} I also really enjoyed the article! It had a great take on J.Crew's most recent transformation. I thought the following lines said it all: "This summer, then, what is the new J.Crew ideal? Not the East Hampton WASP, not anymore. Rather, it’s the sultry au pair watching the children. In sequins." So true! {tear} So true!!! ;)

What are your thoughts on the article? Did you agree or disagree with any of the points made?

WSJ Declares Drexler as "The Retail Therapist"

As mentioned in Thursday's "J.Crew CEO Mickey Drexler Is On Top" post, the Wall Street Journal has an in-depth article on J.Crew's Mickey Drexler.

A big "thanks!" again to Raina for letting us know about it on Thursday & for sharing the video below from Racked (click here). Another big "thanks!" to Suzy (in this post) who let us know that the article is available online today! :) The following is an excerpt of the article (click here to read it in its entirety).

Mickey Drexler: Retail Therapist
By Tina Gaudoin
June 10, 2010

It was Steve Jobs who informed Millard “Mickey” Drexler that he was about to be fired from Gap, a company he had taken from $400 million in annual revenues to $14 billion and from 450 stores to more than 2,000 in the span of 19 years. “Steve, who was on the board, called and told me the night before,” Drexler says, recalling their May 2002 conversation. He knew it was coming. Although he’d been celebrated in the media for years as the “merchant prince”—the man who had the answer to the curious riddle of retail (just how do you get a customer to buy more than one pair of jeans?)—Gap’s growth had stalled in the two and a half years leading up to his firing: Same-store sales had dropped by double digits every quarter between 2000 and 2002 and the stock had plummeted 75 percent.

...The Wasp privilege–meets-street-smart-kid vibe has become Drexler’s calling card. At Gap he turned the wearing of khakis into an art form (who can forget the Ernest Hemingway wears khakis campaign?), and now at J. Crew he is spinning sequins, combat pants and cashmere into a raging success story. In 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.

The first family are fans: All four wore the brand during last year’s inauguration festivities. Though he won’t discuss his most famous customers (“We respect their privacy”), he does admit to checking sales figures after Oprah wore, and waxed lyrical about, the company’s shoes this spring during a segment with executive creative director Jenna Lyons. He was also pretty happy when the Queen of Media admitted to her 5.6 million viewers: “When I saw the first lady, even before she became first lady, wearing J. Crew—full disclosure here—I bought some J. Crew stock. And that was a very good decision.” (The stock has risen 119 percent since Michelle Obama appeared on “The Tonight Show” in a yellow J. Crew ensemble in fall 2008 and 132 percent since Drexler took the company public.)

So what drives Mickey Drexler? A man so obsessed and passionate about his job, the customer and the product that he personally answers shoppers’ emails and telephone calls, makes split-second decisions about entire lines based on “a gut feel,” talks to his 695-strong team constantly via an elaborate intercom system and treats routine store visits (of which he makes at least five per week) as a holiday: “They don’t count as work.”

...“Whether you have wealth or not is irrelevant when it comes to appreciating quality—even if you can’t afford it, you can respect it,” Drexler says to an assembled team of designers, buyers and merchants before they begin their fall 2010 holiday presentation for “the boss,” who, coincidentally, is a disciple of The Boss and quotes from him often, telling everyone today, “We practice every day, as Bruce says.” The atmosphere at J. Crew’s headquarters in downtown New York is a heady mix of adrenaline and nervous anticipation. Fake snow flutters behind fake cabin windows and somewhere a vague cinnamon scent emanates, desperately evoking the spirit of December on this unseasonably warm spring day in April. ...

...“The customer can tell you a lot,” Drexler says. “They can give you feedback on fit and specs on operational issues even, but they can’t tell you what’s coming down the road. For that, you are always listening and learning, but when it comes to the fashion part, it’s having a certain creativity; it’s getting a sense of how the world changes.” It’s also having keen business acumen, something TPG Capital co-founder James Coulter, who joined J. Crew’s board at the time of his firm’s acquisition, sees as being overlooked in Drexler. “So much is written about him as a merchant. Rarely does anyone write about the power of him as a businessman. He has to lead all the way from the drawing of the piece of clothing to the checkout of it at the store.” ...

Love, love, love this article! It is super fascinating to read about Mickey Drexler's story with J.Crew and all the events leading up to their recent success. And the video is just as awesome!

What are your thoughts on the article & video? Do you like Mickey Drexler more or less after reading this article? Any points you found particularly interesting or note-worthy? If so, please share! :)

J.Crew CEO Mickey Drexler Is On Top

"Thanks!" to Raina (check out her lovely "If The Lamp Shade Fits" blog) who shared the following article over from Racked (click here) on an upcoming article at the Wall Street Journal (click here).

Mickey Drexler, Retail Therapist, Fixing Companies Since 1983
By Danica Lo
June 10, 2010

In 2002, Steve Jobs, who was on the board at the Gap, phoned then-CEO Mickey Drexler to tell him he'd been fired from his job of 19 years—during which time Drexler took the Gap from a 450-store $450 million business to a 2,000+ store $14 billion business.

"I felt terrible about being fired,” Drexler tells WSJ, the Wall Street Journal magazine in a story that's slated to hit newsstands this Saturday. "I still feel angry every time I pass a store. That’s right, every time."

The man behind the Gap's legendary khaki campaign has since moved onto take the reins at J.Crew. When he arrived at the prep-tastic brand in 2003, J.Crew had 196 stores and was $609 million in debt. After two years, Drexler turned the company around—J.Crew made its first profit in 2005. By last year, in spite of the recession, the comany's revenues clocked in at $1.57 billion, above pre-recession figures, and profits increased 40%.

He's done well for himself, too, after cashing in a $350 million stake in the Gap after leaving (he also owns about $270 million in J.Crew stocks and options).

Not to mention all the praise-lavishing, adoring press:

Drexler’s zeal both for product and for J. Crew is almost messianic. His manner of delivery owes much to successful preachers, politicians and self-help gurus, who linger over their lines, often returning to key themes and engaging individuals on a one-on-one basis. It’s hard not to be mesmerized by Drexler—“We have all, to some extent or another, drunk the Kool-Aid,” one staffer says— and it’s also tough to cut through the media hype. There are times when it becomes clear that at least part of the Drexler package (the corporate shareholder part) is smoothly cloaked in PR.

This weekend's Wall Street Journal magazine story is a worthwhile read—if not for a glimpse at Drexler's legendary magnanimous personality (he rides a bike around the office and answers customer emails himself, sometimes) then for the scenes where Drexler takes the WSJ around the Bronx neighborhood where he grew up.

“Our world was small,’” he says, as we pull up to a yellowing brick apartment building. An African- American woman wearing a Diana Ross (circa The Supremes) style wig and chic red lipstick is unlocking the door as we approach. “It’s OK,” Drexler says, as we stand behind her, “I used to live here.”

Wall Street Journal [Official Site]

I can't wait to grab the WSJ from my husband this weekend to read the article! Mickey has done an impressive job with J.Crew over the years.

What are your thoughts on the post? Do you think J.Crew will continue to perform well under Mickey Drexler? Will you read the WSJ this weekend? :)

J.Crew Laughs All the Way to the Bank!

A big "thanks!" to Raina (check out her lovely "If The Lamp Shade Fits" blog) who shared the following article over at the Wall Street Journal (click here).

J.Crew Profit More Than Doubles
By Elizabeth Holmes
May 27, 2010

J.Crew Group Inc. doubled its profits in the first quarter on stronger full-price selling and expanded into online denim and standalone bridal shops.

The New York-based casual apparel retailer, which operates 246 full-price stores, is a darling of Wall Street because of its continually robust sales as well as its expansion potential.

On Thursday, J.Crew unveiled an online-sales channel for its fledgling denim division, Madewell, and also opened its first bridal boutique, J.Crew Bridal, on Manhattan's tony Madison Avenue. Appointments there are booked through July, and Chief Executive Millard "Mickey" Drexler said standalone bridal stores could easily be replicated elsewhere.

"I don't see why we can't do this in every major city in America," Mr. Drexler said on a call with investors.

J.Crew weathered the recession better than many of its peers, because its highly sought-after fashion has given it a cult-like status in some fashion circles. But the popularity in certain categories, such as embellished cardigans and T-shirts, has led to several copycats from lower-priced retailers.

For the three months ended May 1, J.Crew's profit more than doubled to $44.7 million, or 68 cents a share, from $20.4 million, or 32 cents a share, a year earlier. Net sales rose 20% to $413.9 million. Sales at stores open at least a year, a closely watched measure of a retailer's health, increased 15% over the prior-year period.

Mr. Drexler said the company is focused on winning market share. "It's a take-from-your-competitors business," he said.

Gross margin increased to 49%, up more than six percentage points from a year earlier. Merchandise margins were "significantly better than anticipated" the company said. The average price per item also saw a "significant" increase versus expectations.

The company raised its full-year guidance to $2.35 to $2.45 per share, up from the previously $2.20 to $2.30.

There is also an article over at Reuters (click here to read it in its entirety) that shares some interesting points:

The company, which caters to urban professionals willing to pay extra to make subtle fashion statements, boosted its full-year earnings forecast to $2.35 to $2.45 per share from $2.20 to $2.30 per share previously.

New York-based J Crew said fewer markdowns and promotions helped first-quarter net income rise to $44.7 million, or 68 cents per share, from $20.4 million, or 32 cents, in the year-ago quarter.

Dayum! J.Crew is performing uber-well. Which is great news for stock-holders. I am delightfully surprised how well they are doing too, considering how many other retailers (like Ann Taylor Loft) are offering similar styles (with greater sales & promotions than J.Crew too!)

As a consumer I am a bit sad to see less & less markdowns and promotions. ;) At the end of the day, J.Crew has its fans (or fanatics in my case) who won't shop anywhere else! Incidentally, I like to think the JCA Blogaversary/ BIRTHDAY code helped boost J.Crew's profits a tiny bit. :)

How incredible is it, that appointments for J.Crew's new Bridal Boutique is already booked up through July!?!

Would you consider purchasing J.Crew stock? Do you think J.Crew will continue to perform well in its next quarter? :)

J.Crew's A-Team Scores Big

A big "thanks!" to audball (in this post) & Raina, who shared the following article over at Daily Front Row's The Fix (click here).

Jenna Lyons Promoted at J.Crew
By Ashley Baker
April 16, 2010

Jenna Lyons is doing something very, very right. J.Crew Group Inc. has just announced that Lyons, formerly creative director, has been promoted to executive creative director for J.Crew, and she will receive a $325,000 bonus. This comes six months after Lyons received a $1 million bonus, which was awarded on the condition that she must pay it back in full should she leave J.Crew within 2 years or pay back in half should she exit the brand in 4 years.

Chairman and chief executive officer Millard "Mickey" Drexler will also benefit from a cash payout of $2 million, part of the a series of bonuses paid out by the company's compensation committee to reflect J.Crew's strong performance. Other beneficiaries include Tracy Gardner, president of the retail and direct businesses, who will receive $425,000, chief administrative and financial officer James Scully, who will get $250,000 and executive vice president of factory Libby Wadle, who will receive $200,000. In 2009's extremely challenging climate, J.Crew’s total income more than doubled, with a revenue increase of $1.58 billion.

There is also an article over at the StyleList (click here) that shares the same news:

J.Crew Bestows Big Bonuses on Jenna Lyons, Mickey Drexler
By Lisa Marsh
April 16 2010

A promotion and a bonus. Jenna Lyons, J.Crew's creative director, has been promoted to executive creative director and was awarded a $325,000 bonus in recognition of both individual and company performance in fiscal 2009. This comes on top of her "one-time" $1 million bonus that she received in October 2009. It's good to be queen!

In addition, other J.Crew executives also pulled down some nice change, too. Tracy Gardner, president, was awarded $425k, chief financial officer James Scully was awarded $250k, executive vice-president Libby Wadle was awarded $200k, and the big kahuna Millard "Mickey" Drexler, the company's CEO and chairman, was awarded a whopping $2 million.

An SEC filing said the company had suspended its cash incentive plan at the beginning of its fiscal year, "in light of the then challenging economic conditions," but reinstated the program after the company outperformed its financial goals for the year.

It seems steering the company into partnerships with Fenton/Fallon, Net-a-Porter, Miriam Haskell for bridal among others were not bad moves for Lyons. Plus, it doesn't hurt that the company is a favorite fashion resource for the First Family.

J.Crew is definitely doing something right! They have been outperforming competition for the past several years. More importantly, they have been outperforming market analysts expectations in terms of performance. As a stock holder, I am very pleased.

I definitely believe these executives deserve a bonus & promotion. Not only are they performing well, J.Crew wants to make sure they can retain them, their top talent. (I believe I read somewhere that some of J.Crew's creative team had been lured away by other companies, like the Loft.)

Although, casual-crew (in this post) raised an interesting point: "...Executives get bonuses while their staff had to take cuts to their pension..." The second article mentions: "An SEC filing said the company had suspended its cash incentive plan at the beginning of its fiscal year, "in light of the then challenging economic conditions," but reinstated the program after the company outperformed its financial goals for the year." Here's to hoping J.Crew is taking care of all their other {talented} employees as well.

What are your thoughts on this latest news? Do you agree or disagree with the decision to promote Jenna Lyons? Are the bonuses an appropriate or inappropriate decision? :)

J.Crew's Mickey Drexler Talks On Retailers' Comeback

There is an article (with video) over at CNBC (click here) where J.Crew's CEO, Mickey Drexler, discusses the current state of the retail industry.

J.Crew CEO: Retailers Have Come Back, Not Consumers
By Christina Cheddar Berk
April 8, 2010

A record jump in monthly retail sales has some cheering the comeback of the consumer, but J.Crew CEO Millard "Mickey" Drexler isn't impressed. "I don't talk about the comeback of the consumer," Drexler told CNBC in an interview. "...I talk about the comeback of great retailers, or of good retailers."

According to Thomson Reuters, retail same-store sales rose 9.1 percent in March, the biggest gain since the company began tracking those numbers in 2000.

Drexler said he doesn't think last month's sales are as good as they first appear. He explained that March 2009 was "the easiest month in the history of the retail world" to compete against, as sales were depressed last year by the "tsunami recession." The timing of Easter, which occurred a week earlier this year than last, also helped bolster results. "We look at 20 retail companies in our industry, and there is just a handful that are ahead on a two-year basis," Drexler said.

Like a growing number of retailers, Drexler's company doesn't report monthly same-store sales. However, under Drexler's leadership, J.Crew [JCG 46.75 -0.10 (-0.21%) ] has improved its performance. Last month, the retailer swung into the black in its fiscal fourth quarter and posted full-year earnings that surpassed pre-recession levels.

Drexler said the key to J. Crew's success has been to sell items that "cannot be sold anyplace else." According to Drexler, retail sales are improving not because the consumer is coming back, but because those retailers are taking market share from others.

"The consumer either shops value, or they shop emotionally, or it's both," he said. He also thinks the Internet has made competition more fierce because consumers research prices and know a product's true value.

I couldn't agree more with the last line. Thanks to blogs (like those listed on the JCA Blog Roll Call) and product reviews on company e-commerce sites (like Anthropologie), I always do a bit of research before any purchase online.

Also, I laughed a bit at the line that "the consumer either shops value, or they shop emotionally, or it's both". Doesn't that cover about everyone? ;)

What are your thoughts on the article & video? Disagree or agree with any of the points mentioned? Do you think customers shop either on value, emotionally, or both? :)

J.Crew in the News {transform!}

There is an article over at Styleite (click here) that has some interesting takes on J.Crew's change in direction:

J.Crew Continues Its Quest To Be America’s Chicest Export
By Megan Baldwin
March 31, 2010

Fashion has a ridiculously short memory. Take J.Crew, for example. We’re pretty sure it wasn’t too long ago that the mass-market retailer was more or less indistinguishable from The Gap, what with its prep-friendly range of high-rise khakis, $40 cable knit sweaters, and the occasional peacoat.

But thanks to the entree of C.E.O-cum-magician Mickey Drexler and creative director Jenna Lyons, there is a definite chic in the chain. Gone is the drab, dress code-approved garb, and in it’s place is some serious Mo-Bama endorsed fashion cred, not to mention higher price tags — $300 satchels, anyone?

And now, with the transformation of Frankenstein proportions nearly complete, comes the news that the all American chain has opened itself up to the U.K. market via Net-A-Porter. Yes, that Net-A-Porter — the same one that sells Chloe, Marchessa and Valentino. Well, if we can have TopShop then we suppose the Brits have a right to enjoy all the red, white and blue glory that is J.Crew.

Still, we can’t help but attempt to piece together at what point exactly J.Crew became a full-fledged, Net-A-Porter approved luxury brand? Our best guess is that it happened somewhere amidst the Michelle Obama’s sunshine cardigan on the Jay Leno Show, Erin Wasson fronting their catalogue, and the recession — which, as we know, drove even the most fashion faithful to the sale racks.

So as much as we bemoan the uptick in prices (since it drives us to bankruptcy every season), you’ve got to admire their image overhaul. Because what’s more fashion-y than a makeover? And hey, if worked for J.Crew, maybe mass-market, mom-friendly retailers like Ann Taylor and Talbots might just be able to stage some mall madness of their own. (Because, god knows, they’re trying.)

Even though there is nothing new in the article (to us well-researched JCAs anyways!), I thought it summarized what is going on quite nicely & even made some good points. The company has definitely set itself apart from its old competitors like the Gap. And the line about admiring the image overhaul is great. I definitely give "mad props" to J.Crew for managing to change their image successfully, while so many others have failed.

I also couldn't agree more with the last line too. Growing up, Ann Taylor and Talbots were "mom-stores". Today, I look at their offerings and definitely see pieces that are stylish & classic for all ages. Here's to hoping they can stage some of their own magical transformation too! :)

What are your thoughts on the article? Do you agree or disagree with any of the points made? Do you think J.Crew is moving in the right direction? :)

Surprise! J.Crew Sends their Love {& tote}

"Thanks!" to many of you, including those in the "Surprise! J.Crew Sends their Love {& handkerchief}" post, who shared the following delightful news. Also, a big "thanks!" to MissMasala, RatsOnParade (click here to read her post too!), & Lyssa, who not only shared the news but sent images to view!

J.Crew is delivering more presents to very lucky J.Crew Aficionadas. In the mailbox, they found a gift of a shopping tote with the following note:

Thank you from J.Crew

We thought of you— and wanted to send you our new reusable tote (featuring hand-sketched designs straight from one of our designers). Just a little way of saying thank you.

We're here if there is anything you ever need.

All the best,
Mickey

As usual, this is a wonderful gift and more importantly, a lovely gesture for those who receive it. Congratulations JCAs!!! :)

As for me ...I checked my mailbox today to see if I got one of these lovelies. The result is always the same— me empty handed muttering "sun of a beach" under my breathe. (Isn't that definition of insanity, where you do the same thing over & over again expecting different results?) I know, I know. I am a sucker for hoping. ;)

So check your mailbox in the next few days to see if you got something extra special from J.Crew. And if you do receive this, please share! :)

J.Crew's Mickey Drexler Talks (& likes to ride his bike— who knew!)

"Thanks!" to Cory (Co-Founder & Editor at Valet), as well as Raina, who shared the following great interview with J.Crew's CEO, Mickey Drexler, over at Valet (click here to read it in its entirety).

Shop Talk with J.Crew's Mickey Drexler
By Cator Sparks
March 29, 2010

I recently had the pleasure of meeting J.Crew CEO and man of the moment, Mickey Drexler in Aspen during the city's second annual fashion week. The company hosted several intimate events and the mogul was always right in the middle of the madness—meeting people, asking questions and cracking jokes. The man himself is a humble boy from the Bronx who, since his days at The Gap in the '90s, has aimed to revolutionize the way many dress. Us boys owe him a lot these days. Along with designer Frank Muytjens, he's tapped into men's love of lore, offering clothes that won't break the bank yet still hold their own against a Bastian design. I pulled him aside for a quick chat after getting the inside scoop on the guy from his co-workers, err, employees, well, let him explain... ...

I hear some people call you "the Wizard of Oz" because of your love of the intercom.
It's this paging system throughout the building and what I like about it is it makes the organization feel spontaneous and emotional. It actually started on the first day I came on board. It's just so easy if you are looking for someone. When something has to get done, it gets done quickly!

I also use it as a survey technique. Who has heard of this brand? Who is from this city where we are thinking of opening a store?

When traveling, I become the 'Roving Reporter' and get on the intercom via phone and tell everyone where I am and what I've seen. It keeps it real and breaks down barriers. That's a positive. It's part of my DNA.

Speaking of which, explain the importance of open office hours everyone talks about. Anyone can come into your office and challenge the status quo?
How many people know what can be done better in their job position? Everyone. I just got a box from UPS the other day and didn't open as easy as FedEx. So I sent a note to the CEO of UPS and said they need to improve their boxes. We should all be open to hearing what can make things better. It's what I wish my bosses would of done in the past. But sometimes I announce open hours and nobody comes in. I guess they're afraid of angering me. So I have to send out another call explaining 'I am sure someone has something to say.' Then I get the traffic flowing!

J.Crew's creative director Jenna Lyons told me that you peddle a bike around the office.
That's just fun. And seriously, it's efficient. I just do it when I get the whim. It's a Madewell bike that they showed us in a meeting and I asked to keep it. I want people to always know that I'm approachable and it makes the office much less imperial. I hate the idea of an imperial office. And I can ring my bell so people know I'm on the way to their office. ...

This interview asked some fun questions. It's not everyday you see your boss riding around on a bike (& ringing the bell!) or even holding office hours for that matter. Sounds fun! :)

What are your thoughts on the article? Were there any points made that you found particularly insightful?

Surprise! J.Crew Sends their Love {& handkerchief}

A big "thanks!" to PrettyBoy, who shared the following delightful surprise (& an image for us to view!)

J.Crew has delivered a present a bit early this year to some very lucky J.Crew Aficionados. In the mailbox, they found a gift of a handkerchief with the following note:

Just For You

We couldn't resist asking Mister Freedom—L.A.'s curator of cool— to custom design this handkerchief (it's a personal favorite of our men's designers) exclusively for you, one of our favorite customers. It's our way of saying thanks. Don't forget—we're always here for anything you may need.

All the best,
Mickey

What an absolutely fantastic surprise for customers. I adore the pattern on the handkerchief too! J.Crew has been known to shower certain customers with gifts in the past (from day planners, to earrings, to tie clips, to necklaces, to scarves, and the like). It is a wonderful gift and more importantly, a lovely gesture for those who receive it.

So check your mailbox in the next few days to see if you got something extra special from J.Crew. And if you do receive this, please share! :)

Madewell News: How It's Doing & Alexa Chung

Over at Lucky (click here), there is a video of Alexa Chung (at the launch of her line for Madewell during Fashion Week) being interviewed. She is asked several questions, including what is her inspiration & what kind of girl would buy her clothes.

On a related note... J.Crew's CEO Mickey Drexler had a lot to report about Madewell's performance during the last quarter & last fiscal year. Some highlights from the StreetInsider article (click here for its entirety) include the following:

• ...approximately $13 million in losses associated with Madewell, which includes expenses for our e-commerce launch and is essentially flat to 2009, excluding one-time costs related to store closures and impairment charges...
  
• ...We look at the penetration of the J.Crew brand, and Madewell has a potential, and I didn't mention anything about Madewell, because until we see it start to contribute earnings. It's not going to be on top of our we're so excited list. But in the meantime the indication is good. ...
  
• ...Well, we've had an interesting experience with Madewell and we've been kind of very cautious, which again I'm glad to say. We are seeing now every indication that our people like it a lot, customers like it a lot day-by-day. We are going online this summer, and we're pretty pleased about what that looks like. Again, we have a conservative sales plan, but we are - we're actually going to be looking at more stores for 2011, we're going to be a bit more ambitious about that than we've been. But it's - we've seen a lot more consistency in our performance there over the last six months, I'm really happy to say. If you go into our stores today, I think you'll see an assortment that's much more reflective of - starting a new company is really complicated. It's not an exercise that I would recommend to most, although some of us have been there successfully and not successfully, I think, so we're actually committed. We hired Alexa Chung, who - Alexa's been pretty unknown, but for us a muse of sorts for the Madewell brand. So, I think we're really - I don't want to be too optimistic, but we're spending a lot of time in the stores. We're looking at the customers, we're getting a lot of buzz and if you ask frankly a lot of women you know who shop in Madewell, you're going to see a lot more loyalty, higher traffic, a better conversion and price points. And we're becoming quite famous for our boots, our denim, our accessories, our scarves and it's actually nice to see. So I guess more to come in the next three months in terms of reporting. ...
  

It's interesting that Madewell is still under-performing expectations. If I am not mistaken, Madewell has lost money every year since its been under J.Crew's umbrella. I also heard too many times to count now how Madewell was going online (with a fully functioning e-commerce site), to only postpone it. I understand that Madewell is Mickey's baby, and he will do what he can to make it successful like J.Crew. However, I wonder how long investors will continue to support the Madewell brand if it continues to lose money.

Are you a fan of the "Alexa Chung for Madewell" Collection? Did you like (or dislike) her responses in the video? Also, what are your thoughts on Madewell's future? :)

J.Crew is Doin' Alright {as in "cha-ching!"}

Today's conference call with J.Crew has been nicely summed-up over at the Wall Street Journal (click here).

WSJ UPDATE: J Crew Swings To 4Q Profit On Higher Margins
By Elizabeth Holmes
March 9, 2010
Of THE WALL STREET JOURNAL

J.Crew Group Inc. (JCG), purveyor of oft-copied applique T-shirts and ruffled tank tops, swung back into the black in its fiscal fourth quarter and posted full-year profits that surpassed prerecession levels.

The New York company, led by well-known merchant Millard "Mickey" Drexler, resuscitated its gross margin in the fourth quarter by tightening inventory controls and cutting back on discounts.

The result was a profit of $40.4 million, or 61 cents per share, compared with a loss of $13.5 million, or 22 cents a share, a year earlier. For the three months ended Jan. 30, total revenue rose 19% to $460.6 million. Sales at stores open at least a year rose 17%, which erased the 13% decline seen in the same period a year earlier.

With solid results in pocket, Drexler is looking afresh at expanding his fleet. J.Crew, which also operates the denim-focused Madewell brand, will open 15 stores this year and says opportunities in real estate are improving.

"We're looking at real estate much more seriously again for growth," Drexler said Tuesday on a conference call with analysts. Drexler also spoke much more favorably about international growth than he has in the past, revealing that the company has been looking for opportunities.

J.Crew's profit for the year rose to $123.4 million, up from $54.1 million a year earlier and $97.1 million for fiscal 2007. The company's outlook for the current quarter and year were better than Wall Street analysts had expected. Shares were down 14 cents in after-market trading at $46.85.

J.Crew's popular offerings have bred a slew of copycat merchandise. The embellished graphic T-shirts and tank tops that J.Crew sold last spring, as well as its chunky accessories, were echoed by mall retailers including AnnTaylor Stores Corp.'s Loft division and Gap Inc.'s Old Navy brand.

For spring, retailers with different age targets, including women's retailer Coldwater Creek Inc., have a J.Crew vibe, says Ann Poole, retail analyst with Stephens Inc.

"J.Crew's merchandise has lost a little bit of its luster due to an abundance of knock-off product in the mall," says Poole, adding that it would need to "push the fashion envelope further and provide more newness in its collections to remain ahead of the competition."

The issue is weighing on Drexler. Earlier this year, he said, he called the heads of three competitors selling similar products and suggested they cut the salaries of their creative staffs.

"They weren't too happy," he said at a conference in California in mid- January. On Tuesday, he said, "As we look at the long term, you just have to out-product your competitors."

One would-be competitor dropped out Tuesday. American Eagle Outfitters Inc. announced that it has decided to close its long-struggling Martin + Osa brand. The 28-store chain targeted 20-somethings and was designed to compete with J.Crew and Gap Inc.'s Banana Republic.

American Eagle said the chain lost $44 million after taxes in fiscal 2009 and doesn't "warrant further investment." Its stores should all be shut by the end of the fiscal second quarter, resulting in pretax charges of as much as $106 million for American Eagle.

J.Crew, meanwhile, continues to expand. The company announced last month that it is testing international waters. In May, J.Crew product will appear on Net- a-Porter.com, a London-based online retailer that sells primarily designer and contemporary women's apparel.

Net-a-Porter sells to customers in over 150 countries, a far wider reach than the current J.Crew ecommerce sales in North America and Japan. J.Crew said it will offer a limited portion of its assortments on the Web site, as well as create a small range of product exclusively for Net-a-Porter. One hope is that the Web site's fashion cachet will rub off. "Hanging out with all those other people will show well for us," Drexler said, speaking of designers, such as Prada and Jimmy Choo, that appear on the site.

Great {financial} news for J.Crew! They had a stellar performance, which is clearly being rewarded. This article had all sorts of juicy bits to read. The following are a few of my thoughts...

1. J.Crew is raking it in!
2. I totally have noticed that other retailers are copying J.Crew's style. Sometimes I will see an add for Banana Republic, Ann Taylor, or even Talbots, and think to myself that it eerily resembles something from J.Crew.
3. The following quote stood out for me: "push the fashion envelope further and provide more newness in its collections to remain ahead of the competition". I am always excited to see what new items J.Crew will roll-out. They always manage to entice me with several of their latest offerings. However, a part of me is worried a bit that J.Crew will become so fashion-forward that it will leave me behind.
   
4. When I read the line about Mickey calling the competitors... dayum! Don't mess with Drex! Loves it!
5. Sad to hear Martin + Osa isn't going to make it.
   

What are your thoughts on the results? Any tidbits in the article that you found particularly interesting? If so, please share! :)

J.Crew's March Catalog: Behind the Muse {w/Jenna}

There is a great article over at the StyleList (click here) that has J.Crew's Creative Director, Jenna Lyons, discussing the lovely ladies behind this month's catalog.

J.Crew Spring Catalog - First Look With Jenna Lyons
By Jennifer Paull
March 1, 2010

Remember those dashing real guys from J.Crew's November catalog? They've met their match in a group of real-life ladies featured in the upcoming March mailing (out this week).

Creative director Jenna Lyons gives StyleList a sneak peek at the company's new "muses."

In good Grecian style, J.Crew highlights nine muses, each with an arty bent. The creative team selected these women for their inventive and inspiring tastes. None are professional models, but each has a keen aesthetic sense which shaped their catalog ensembles.

Lyons plucked a few of the muses from her own circle of friends, including author and fashion consultant Amanda Brooks and interior designer Celerie Kemble.

Stylist Dianna Lunt was recruited after the J.Crew team saw her picture on the Sartorialist street style blog. "I have pictures of her on my wall," confesses Lyons. "We cold-called her because we've been personally stalking her style."

A couple of muses cropped up in J.Crew's own backyard. Molly Carey is a designer for the line who creates bib necklaces on the side. Mei Tao, a photographer who works with the company, "wears J.Crew like no one else," promises Lyons.

And who's that girl that you can practically hear laughing right in the center of the catalog cover? Naomi Beckwith, a curator at The Studio Museum in Harlem, whom Lyons met at a museum event.

Each of these women reveal more about their personal style and their creative endeavors on the J.Crew site. These aspects influenced their catalog looks. "We created outfits for them that they'd be comfortable in, that would make them feel like themselves," explains Lyons.

For instance, the polished Kemble appears in a pencil skirt and chiffon-and-petal embellished cardigan. Tougher-edged Lunt, on the other hand, rocks a bomber jacket.

Further into the catalog, the professional models step in, posing in the new season's line. While glimpses of a boat, palm fronds and azure water evoke warm weather, the shots focus on a feeling rather than a location.

"We used the outside more like a studio," said Lyons. "We wanted you to feel that intense sun when summer comes around."

How about one of the biggest seasonal trends: shorts? The catalog is full of them, paired with everything from a boyfriend sweatshirt to sequins.

"Shorts right now are the skinny jeans of summer," counsels Lyons. "If you have the legs for it, by all means, go for it! No holds barred. I think a big oversized men's shirt and little shorts is so sexy."

The menswear pages, meanwhile, also have special guests: The men of "Monocle," a London-based global-culture magazine. J.Crew's CEO Millard "Mickey" Drexler has known "Monocle"'s editor-in-chief Tyler Brûlé for years and gradually the idea of a catalog feature developed.

The "Monocle" staff agreed to let J. Crew do the styling; the photos were snapped in the editorial offices and in front of the brand's shop. "Tyler has an office full of smart, interesting, adorable boys!" enthused Lyons. "What more could you want?"

I loved learning more about J.Crew's "muses". Jenna Lyons has the most-awesome circle of friends too! All of the {inspirational} women selected are absolutely beautiful. I would love to see J.Crew continue this marketing concept in more of their catalogs.

Incidentally, who else laughed out loud when they read the next big thing is ...shorts! I guess I was expecting something more specific (like cuffed satin shorts in navy or something). ;)

What are your thoughts on the article? Are there any tidbits you found particularly interesting? Would you like to see this concept continued in future catalogs?

J.Crew's Drexler Talks Fashion with Charlie Rose

Over at RatsOnParade's I LOVE J.CREW blog, there is a great post (refer to her "Mickey Drexler on TV: Charlie Rose 2/19/2010" post) about a recent appearance of J.Crew's CEO Mickey Drexler on Charlie Rose (click here for the video & transcript).

The Charlie Rose episode took "a look into the world of fashion" with guests Cathy Horyn (of The New York Times), Narciso Rodriguez (designer), Roberta Myers (Editor-in-Chief of ELLE), and of course Millard Drexler, (CEO of J.Crew). A lot of great questions were asked of the guests. The following are some responses from Mr. Drexler that I found interesting:

• I live a very narrow life in the world of J.Crew and Madewell.
• I sometimes think we’re in a different business. We design, we develop, we create and we very much evolve. It is kind of sharpening the edge, it’s getting rid of the older, bringing in the new, but it’s a business first and foremost, and in our business it’s a true partnership between design and merchandising as investments in clothes. Because without the profit, the sales, the growth, it’s not a lot of fun, especially if you are a public company.
• And you know, I also look at it, because I’m in a different world. It’s not a design world. I look at the prices and I look at what the real people pay in the world. We’re talking here about, and I didn’t want to be the biggest. I think better is better, not bigger is better.
• Madewell tends to skew younger than J.Crew, but I like timeless because I think a great product will wear well on a young person, and by the way what is going on today is all the young kids are not shopping their mother’s closets any more, they are shopping their father’s closets. So I, you know.
• ...our best-selling men’s shoe, the Macalister -- we lowered it to size five now because we sell one-third to women. Instead of just to men. Our washed shirts, J.Crew, our buttoned down washed shirts, we went to extra small this season.
  

What are your thoughts on the interview? Were there any pieces of information that you found particularly interesting? :)