The operating results for the quarter reflect a gross margin increase to 46% in 2005 from 42% in 2004 due to higher full price selling and leverage on fixed buying and occupancy costs.
Selling, general and administrative expenses during the quarter were $74 million, or 35% of revenues, compared to $64 million, or 44% of revenues in the prior year. The decrease as a percentage of revenues was driven primarily by leverage on fixed operating expenses due to the significant increase in revenues.
Net income for the first quarter was $5 million compared to a net loss of $24 million in the prior year.
Inventory at April 30, 2005 was $105 million, up 24% from the comparable period last year. The increase in inventories is consistent with our strong sales performance and a conservative inventory strategy in last year's first quarter. There were no outstanding borrowings under the Company's working capital facility during the quarter.
J. Crew Group Inc is a leading retailer of men's and women's apparel, shoes and accessories. The Company operates 157 retail stores, the J. Crew catalog business, jcrew.com, and 43 factory outlet stores.
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