As a prospective investor, I am always looking for the right opportunity to diversify my portfolio while increasing my returns. One company that has been on my radar for lately is J.Crew the multichannel retailer of clothing for men, women, and children. Recently, J.Crew held a conference call and the trandscript is available online. After reading the transcript there was a wealth of knowledge revealed about how this company is bucking the trend of the economic turmoil and exceeding earnings for Q2.

Notably,

“Revenues were up 6% and we managed our inventory and expenses driving gross margin and operating income slightly above last year with operating margin almost flat to last year at 9%.”

Some key takeaways from J.Crew’s business include:
- Wisely managing inventory by channel and offering exclusivity of inventory via the web
- Decreasing marketing expenditures on old school marketing tactics such as catalogs
- Maintaining the integrity of the J.Crew brand by not focusing on extreme sales

Disclosure: I currently do not own any J.Crew, JCG stock and this article does not and should not be considered investment advice.

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Tags   clothing  ecommerce  etail  fashion  jcrew.com  retail