Adjusted net income for the second quarter of fiscal 2006 totaled $13.3 million, or $0.21 per diluted share. Adjusted net income:
(i) assumes the company's initial public offering occurred at April 29, 2006,
(ii) excludes $10.0 million in costs associated with the refinancing of debt; and
(iii) adjusts the effective tax rate.
On July 3, 2006, J Crew Group Inc closed its initial public offering of common stock in which the company sold 21.6 million shares raising net proceeds of $402.3 million. Subsequent to the closing, Texas Pacific Group acquired an additional 3.7 million shares with $73.5 million of proceeds from the redemption of preferred stock.
For the six months ended July 29, 2006:
-- Revenues for the first six months of fiscal 2006 increased 16% to $509.9 million from $439.9 million in the six months of fiscal 2005. Store sales (Retail and Factory) increased 18% to $364.5 million in the first half of fiscal 2006, with comparable store sales increasing 14%. Comparable store sales rose 24% in the first half of 2005. Direct sales (Internet and Catalog) for the first half of 2006 increased by 9% to $129.0 million.
-- Operating income increased 28% to $55.1 million compared to $43.1 million in the first half of fiscal 2005.
-- Net income applicable to common stockholders was $1.7 million, or $0.05 per diluted share, compared to a net loss of $0.1 million, or $0.00 per diluted share in the first half of fiscal 2005. Net income for the first six months of fiscal 2006 includes pre-tax charges of $10.0 million related to the refinancing of debt and $1.0 million related to stock option expense related to SFAS 123 which was not applicable in fiscal 2005. Excluding these items net income would have been $11.8 million or $0.34 per diluted share.
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