J Crew (JCG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Company Contact:

James S. Scully

Chief Administrative Officer and

Chief Financial Officer

(212) 209-8040

Investor Contact:

Allison Malkin/Chad Jacobs/Joe Teklits

Integrated Corporate Relations

(203) 682-8200

J. CREW GROUP, INC. ANNOUNCES FOURTH QUARTER AND FISCAL 2008 RESULTS

Fourth Quarter Loss Per Share of ($0.22)

Fiscal 2008 Diluted Earnings Per Share of $0.85

New York, NY – March 10, 2009 – J. Crew Group, Inc. [NYSE:JCG] today announced financial results for the three months (fourth quarter) and fiscal year ended January 31, 2009 (fiscal 2008).

Fourth Quarter highlights:

• Revenues decreased 3% to $388.0 million. Store sales (Retail and Factory) 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.”

Fiscal 2008 highlights:

• Revenues increased 7% to $1,428.0 million. Store sales (Retail and Factory) increased 7% to $974.3 million, with comparable store sales decreasing 4%. Comparable store sales increased 6% in fiscal 2007. Direct sales (Internet and Phone) increased 8% to $408.9 million. Direct sales increased 22% in fiscal 2007.

• Gross margin decreased to 38.9% of revenues from 44.1% of revenues in fiscal 2007. The decrease in gross margin is primarily due to increased markdowns and promotional selling activities in the fourth quarter.

• Operating income decreased 44% to $96.7 million, or 6.8% of revenues, compared to $172.5 million, or 12.9% of revenues, in fiscal 2007. Operating income in fiscal 2008 includes non-cash asset impairment charges of approximately $2.7 million related to under performing stores.

• Net income for fiscal 2008 was $54.1 million, or $0.85 per diluted share, and includes the impact of non-cash asset impairment charges of approximately $0.03 per share related to under performing stores. Net income was $97.1 million, or $1.52 per diluted share in fiscal 2007.

Balance Sheet highlights as of January 31, 2009:

• Cash and cash equivalents were $146.4 million at the end of the fourth quarter and include the impact of voluntary principal payments of debt of $25.0 million made during fiscal 2008. Cash and cash equivalents were $131.5 million at the end of fiscal 2007.

• Inventories at the end of the fourth quarter were $187.0 million, reflecting the impact of 40 net stores opened since the end of fiscal 2007. Inventory per square foot increased 7% at the end of fiscal 2008 compared to the end of fiscal 2007.

Guidance

As the economy has continued to weaken and become more unpredictable, it has become more difficult to accurately predict results. Given the uncertainty surrounding the economic environment, the Company will suspend providing annual guidance. The Company will continue to provide guidance on a quarter to quarter basis. The Company currently expects first quarter fiscal 2009 diluted earnings per share in the range of $0.07 to $0.12. Our guidance for the first quarter excludes severance and other one time items.

Conference Call Information

A conference call to discuss fourth quarter results is scheduled for today, March 10, 2009, at 4:30 PM Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 407-0784 approximately ten minutes prior to the start of the call. The conference call will also be webcast live atwww.jcrew.com. A replay of this call will be available until March 17, 2009 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 314947.

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About J. Crew Group, Inc.

J. Crew Group, Inc. is a nationally recognized multi-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. As of March 7, 2009, the Company operates 229 retail stores (including 6 Crewcuts and 12 Madewell stores), the J. Crew catalog business, jcrew.com, and 76 factory outlet stores. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company’s websitewww.jcrew.com.

Forward-Looking Statements:

Certain statements herein are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending or preferences in apparel, the performance of the Company’s products within the prevailing retail environment, trade restrictions, political or financial instability in countries where the Company’s goods are manufactured, postal rate increases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company’s Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

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Exhibit (1)

J. Crew Group, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except percentages and per share amounts)	Three Months Ended January 31, 2009			Three Months Ended February 2, 2008			Fiscal Year Ended January 31, 2009			Fiscal Year Ended February 2, 2008
Net sales
Stores	$	252,026		$	260,627		$	974,284		$	914,810
Direct		122,957			126,020			408,916			377,444
		374,983			386,647			1,383,200			1,292,254
Other		13,054			13,288			44,770			42,469
Total Revenues		388,037			399,935			1,427,970			1,334,723
Costs of goods sold, buying and occupancy costs		281,101			234,956			872,547			746,180
Gross Profit		106,936			164,979			555,423			588,543
As a percent of revenues		27.6	%		41.3	%		38.9	%		44.1	%
Selling, general and administrative expenses		127,378			121,678			458,738			416,064
As a percent of revenues		32.8	%		30.4	%		32.1	%		31.2	%
Operating income (loss)		(20,442	)		43,301			96,685			172,479
As a percent of revenues		(5.3	)%		10.8	%		6.8	%		12.9	%
Interest expense, net		1,570			1,847			5,940			11,224
Income (loss) before income taxes		(22,012	)		41,454			90,745			161,255
Provision (benefit) for income taxes		(8,463	)		16,497			36,628			64,180
Net income (loss)	$	(13,549	)	$	24,957		$	54,117		$	97,075
Income (loss) per share:
Basic	$	(0.22	)	$	0.41		$	0.88		$	1.61
Diluted	$	(0.22	)	$	0.39		$	0.85		$	1.52
Weighted average shares outstanding:
Basic		61,991			60,752			61,687			60,346
Diluted		61,991			64,003			64,027			63,748

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Exhibit (2)

J. Crew Group, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)	January 31, 2009		February 2, 2008
Assets
Current assets:
Cash and cash equivalents	$	146,430	$	131,510
Inventories		187,044		158,525
Prepaid expenses and other currents assets		34,926		33,293
Prepaid and refundable income taxes		23,116		9,794
Total current assets		391,516		333,122
Property and equipment, net		201,675		168,292
Deferred income taxes, net		8,862		20,188
Other assets		11,756		13,994
Total assets	$	613,809	$	535,596
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable	$	119,719	$	101,277
Other current liabilities		83,889		91,414
Deferred income taxes, net		4,049		2,382
Total current liabilities		207,657		195,073
Long-term debt		100,000		125,000
Deferred credits		73,815		67,600
Other liabilities		7,388		7,601
Stockholders’ equity		224,949		140,322
Total liabilities and stockholders’ equity	$	613,809	$	535,596

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Exhibit (3)

Actual and Projected Store Count and Square Footage

Actual Fiscal 2008
Quarter	Total stores open at beginning of the quarter	Number of stores opened during the quarter	Number of stores closed during the quarter		Total stores open at end of the quarter
1st Quarter	260	7	0		267
2nd Quarter	267	9	0		276
3rd Quarter	276	15	1		290
4th Quarter	290	11	1		300
Actual Fiscal 2008
Quarter	Total gross square feet at beginning of the quarter	Gross square feet for stores opened or expanded during the quarter	Reduction of gross square feet for stores closed or downsized during the quarter		Total gross square feet at end of the quarter
1st Quarter	1,688,016	38,685	(2,261	)	1,724,440
2nd Quarter	1,724,440	41,949	(7,899	)	1,758,490
3rd Quarter	1,758,490	67,657	(10,304	)	1,815,843
4th Quarter	1,815,843	54,471	(6,181	)	1,864,133
Projected Fiscal 2009
Quarter	Total stores open at beginning of the quarter	Number of stores opened during the quarter	Number of stores closed during the quarter		Total stores open at end of the quarter
1st Quarter	300	11	2		309
2nd Quarter	309	8	0		317
3rd Quarter	317	4	0		321
4th Quarter	321	2	0		323
Projected Fiscal 2009
Quarter	Total gross square feet at beginning of the quarter	Gross square feet for stores opened or expanded during the quarter	Reduction of gross square feet for stores closed or downsized during the quarter		Total gross square feet at end of the quarter
1st Quarter	1,864,133	49,783	(8,358	)	1,905,558
2nd Quarter	1,905,558	32,392	0		1,937,950
3rd Quarter	1,937,950	18,107	0		1,956,057
4th Quarter	1,956,057	9,512	0		1,965,569

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