Corporate Communications Final Presentation. We were asked to research all aspects of a company of our choice throughout the semester. I researched everything from current industry trends to annual reports and figures.
2. U.S. Apparel Industry History Began with menswear in 1800’s 19th century Gold Rush Levi Strauss Jeans “easily transformed into utilitarian work trousers” Womenswear picked up in 1900’s First influenced by Parisian fashion Isolation of WW1&2 created confidence in “correctness” of American lifestyle Today U.S. retail industry has revenue of $150 billion
3. J.Crew Company History Started as mail order catalogue in 1983 Popular Merchandise, Inc. End of 80’s showed decline in mail order catalogues South Street Seaport Flagship Store opened 1989 Success was great 3 more stores opened nationwide End of year revenue $320 million 327 J.Crew stores in U.S. to date
5. CEO: Mickey Drexler Brought on in 2003 Previous CEO of The Gap Credited with 1990’s revival Coined the “retail therapist” Extremely involved in all aspects of company Created an environment of “perceived exclusivity” Maintaining quality Less-than-designer price point Offering timeless classics with a twist
6. CEO: Mickey Drexler 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. -Wall Street Journal
8. Current Company Status Privately held as of March 1 $3 billion buyout Stockholders 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%
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
21. Future Outlook for J.Crew Americana trend made J.Crew more relevant Increased consumer awareness Obama marketing International expansion Going private allows for greater fluctuation in numbers Media/shareholders can’t comment Increased market share Increased profit margin