Posted on Jul 13, 2009 in
In the News,
Mickey Drexler 
A segment on Mickey Drexler, the CEO of J.Crew aired yesterday morning on CBS Sunday Morning. Check out the WWD’s announcement below. I have also posted a link to the article.
MICKEY IN THE MORNING: Millard “Mickey” Drexler and his unorthodox management style, from his daily bicycle ride through J. Crew headquarters to his trademarked off-the-cuff loudspeaker pages communicating company developments to the entire staff, gets profiled this Sunday on CBS’ “Sunday Morning” at 9 a.m.
Host Serena Altschul and producer Ramon Parkins were practically embedded at J. Crew offices, closely trailing Drexler and his team on and off for about a year, experiencing closed-door design reviews, spontaneous brainstorming sessions, photo shoots and the rise of new retail concepts, such as the Liquor and the J. Crew Collection stores. There’s also a sit-down interview with Drexler on the construction site of the recently opened men’s shop on lower Broadway. The segment is also scheduled to air on Charles Osgood’s weekly radio show this morning on CBS Radio.
Click “Clothes Made This Man, and Vice Versa” for the complete story of Mickey Drexler and J.Crew.
Posted on Apr 23, 2009 in
Mickey Drexler 
Women’s Wear Daily reported on Monday that J.Crew CEO, Mickey Drexler’s compensation was down last year compared to 2007. In 2008, he earned $1.9 million compared to $2.8 million in 2007. Please read the article below.
A big thanks to The Preppy Princess for helping me to obtain the article.
Drexler’s Compensation Down in ‘08
by ALEXANDRA STEIGRAD
Posted MONDAY APRIL 20, 2009
From WWD ISSUE 04/20/2009
In a regulatory filing with the Securities and Exchange Commission on [April 17th], J. Crew Group reported Millard “Mickey” Drexler, chairman and ceo, earned total compensation of $1.9 million last year, down from $2.8 million in 2007.
Drexler’s $200,000 salary remained the same as the previous year. Although his stock and option awards rose 60.7 percent, to $1.7 million from $1 million in 2007, he and the other listed J. Crew executives received no bonuses in 2008, because the company failed to meet designated performance goals. Drexler collected a $1.5 million bonus in 2007 and $1.6 million in 2006.
Drexler received $14,900 in other compensation, a 40.9 percent decline over the previous year.
Read more…
J. Crew Group, Inc. today announced financial results for the three months (fourth quarter) and fiscal year ended January 31, 2009 (fiscal 2008).
See below for the press release they sent out.
Fourth Quarter highlights:
– Revenues decreased 3% to $388.0 million. Store sales (Retail andFactory) decreased 3% to $252.0 million, with comparable store sales decreasing 13%. Comparable store sales increased 4% in the fourth quarter of fiscal 2007. Direct sales (Internet and Phone) decreased 2% to $123.0 million. Direct sales increased 11% in the fourth quarter of fiscal 2007.
– Gross margin decreased to 27.6% of revenues from 41.3% of revenues in the fourth quarter of fiscal 2007. The decrease in gross margin is primarily due to increased markdowns and promotional selling activities.
– Operating income (loss) decreased to ($20.4 million), or (5.3%) of revenues, compared with $43.3 million, or 10.8% of revenues, in the fourth quarter of fiscal 2007. Operating loss in the fourth quarter of fiscal 2008 includes non-cash asset impairment charges of approximately $2.1 million related to under performing stores.
– Net income (loss) in the fourth quarter of fiscal 2008 was ($13.5 million), or ($0.22) per share, and includes the impact of non-cash asset impairment charges of approximately $0.02 per share related to under performing stores. Net income was $25.0 million, or $0.39 per diluted share, in the fourth quarter of fiscal 2007.
Millard Drexler, J. Crew’s Chairman and CEO stated: “We are disappointed with our fourth quarter operating results. Our mission, day after day, is to adjust to this new, not fun, retail reality, while not compromising our long term strategy and integrity. We believe the actions we are taking, our focus on quality products and customer service, along with our strong balance sheet, will position us well for when the environment eventually improves.” Read more…
Over at The Consumerist, there is a story posted about a J.Crew customer who recently received 30 pairs of free shoes from the retailer after catching them in a web of lies. Please read his story below.
It started off with me shopping in a store in NJ. I really liked the sneaker there but the store was closing and I had to head back to Brooklyn. The sales associate told me to just go online and id be able to get the shoes for same price via website. They were 50% off in store, plus I had 15 % student discount. I call J.Crew online, and the sales person is super nice. She places me on hold to confirm with store the price.
She tells me that she spoke to the manager and that the shoes were never 50% off. I asked who she spoke to. Hang up and call store myself. Turns out there’s no manager in there by the name I was given
I call back J.Crew. I am told salesperson who i was working with left for the day, only to then find out she’s actually still in. Basically lied to non-stop.
I call CEO (Mickey Drexler). His assistant takes care of me. I have 30 new pairs of sneakers now.
This is a classic example of the policy and price inconsistencies at J.Crew. Some stores charge shipping of full price items, while others do not. Some stores match online prices while others do not.
On top of that, the website does always work. It’s always down and/or forbids online customers from browsing. (See “J.Crew Forbids Access to Some Online Shoppers.”)
This leads to an extremely negative shopping experience at J.Crew. Perhaps, it’s time for J.Crew to issue another apology. (See “J.Crew Admits Their Woes.”)
Personally, I would love to see the retailer post the policies on the website in black and white. It would be nice and clear for everyone: managers, sales associates and customers. I would love to be able to print it out and carry it into the stores with me.
Yesterday, I read a tweet where someone wrote about J.Crew cutting jobs. I wasn’t sure if it was at the corporate or store level. The news has been confirmed as J.Crew just sent out a press release today.
In the press release, J.Crew is making many changes to cut corners and costs. The changes are expected to generate the company $40 million dollars in pre-tax savings. Looks like J.Crew is not faring too well in this economy.
So what is the company doing to ride out 2009? J.Crew will be:
- Reducing workforce by approximately 95 positions (including positions that are currently unfilled) primarily in the New York offices and support functions in the field and distribution centers. This represented an approximate 10% reduction in staffing for the departments included. The affected associates have been offered severance and related transition assistance.
- Suspending the 401(k) Plan Company matching contributions through the balance of 2009.
- Eliminating 2009 merit based wage increases for the entire workforce.
- Initiating other company-wide cost reduction programs to produce efficiencies in areas such as supply chain, store operations, real estate, catalog circulation, and other general savings in the New York offices.
And what did CEO, Mickey Drexler have to say about this?
“As we are all aware, we are operating in a very tough economic environment. This has required us to make some difficult decisions, which we do not take lightly, but feel are necessary to ensure we remain competitively positioned over the long term. However, we believe our financial flexibility, our team, and our focus on quality products and the customer will enable us to navigate these turbulent times.”
A reader of this blog, Maggie, recently wrote an email to Mickey Drexler about the quality of some of the clothes that she recently purchased. Her email was so witty that I had to share. Please read below! And thanks, Maggie for allowing me to post it!
Make sure to read the responses from Mickey!
From: Maggie
To: Mickey
Subject: Its not me; its you.
Mr. Drexler,
Let me first begin by saying: I LOVE JCrew. And I don’t mean in that flighty, write your name all over my notebook kinda way. No sir. We’ve been having an affair since I had babysitting dollars burning a hole through my Jordache’s. Its been long-running, passionate, (sometimes naughty) and usually happy relationship.
Until now.
I’m well aware you’ve retooled a boring and dying brand into something exciting, beautiful and full of things I want to wrap around my body. Why, what would I have done in Barbados without your aptly named shorts? Surely, I’d never go dancing in anything but your day to evening dresses? Work wardrobe? Please! I would’ve arrived to the weekly marketing meeting in only my Victoria’s Secret if it hadn’t been for JCrew. In fact, memories of my OWN wedding would be dulled to a faint halo without my matron-of-honor’s cream colored (she picked the color) strapless, A-line masterpiece. You get it. You understand that color is critical; style, cut, fit and details are the reasons I’m ready to whip out my Amex (or JCrew card as it were).
Yet, have you ever worn and washed JCrew, Mr. Drexler? Do you put your beloved threads through a front-loading, non-agitating washer on delicate, cold, practically hand washed by GE itself only to find that after 1 or 2 wears your beloved tissue tees show holes? Or the adored cardigan becomes something in poor comparison to one of your weaker moments at Target? I dare say you haven’t.
Its heartbreaking, Sir. And there are only so many times you can tell yourself “Oh, well. I bought this on sale.” or “Drat! Another reason to head back, I suppose” No, Mr. Drexler, I simply can’t do it to myself anymore. Or you. Its just not fair to US. The quality of this relationship has just turned into one insulting mess. Mostly insulting my hard earned Benjamin.
It pains me to say it but, Sir, please inform your Accounting Department that, effective immediately, there will be a several hundred dollar drop in monthly profits, for I have chosen to take my business elsewhere. Mostly to newer and smaller designers who understand the value of my 40 bucks (perhaps because they do their own laundry?). And while I will mostly certainly miss your romantic silhouettes, hot pink cashmere and perfect pencil skirts I will not for one minute miss your brand of condescending quality.
Here’s hoping you woo me back.
Maggie
Read more…
