Dive Brief:
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J. Crew Group Inc. said many of its stores may be overvalued and is considering writing down the value of those assets.
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Q1 same-store sales decreased 2% compared to a year ago, and operating income decreased 54%. J. Crew says price pressures and decreased mall traffic were contributors.
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Despite rumors, CEO Millard “Mickey” Drexler said last month the company is not making immediate plans for an IPO during this difficult time.
Dive Insight:
J. Crew says any write down of its stores wouldn’t affect its operations or long-term strategy. The retailer is continuing to look for expansion opportunities overseas and has bought the license to the J. Crew Mercantile name, possibly for the launch of a lower-priced brand. Talks with Tokyo-based Fast Retailing Co. about a possible acquisition of J. Crew broke down earlier this year because, sources said, the Japanese retail group didn’t like J. Crew’s asking price.