J Crew (JCG) 8-K J. Crew Group, Inc. Announces Third Quarter Fiscal 2009 Results

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

ICR, Inc.

(203) 682-8200

J. CREW GROUP, INC. ANNOUNCES THIRD QUARTER FISCAL 2009 RESULTS

Third Quarter Revenues Rise 14% to $414.1 million

Third Quarter Diluted EPS of $0.67

New York, NY – November 24, 2009 – J. Crew Group, Inc. [NYSE:JCG] today announced financial results for the three months (third quarter) and nine months (first nine months) ended October 31, 2009.

Third Quarter highlights:

• Revenues increased 14% to $414.1 million. Store sales increased 20% to $300.1 million, with comparable store sales increasing 8%. Comparable store sales decreased 3% in the third quarter of fiscal 2008. Direct sales (Internet and Phone) rose by 4% to $105.5 million. Direct sales increased 13% to $101.8 million in the third quarter of fiscal 2008.

• Gross margin increased to 48.4% of revenues from 41.6% of revenues in the third quarter of fiscal 2008.

• Operating income increased to $75.2 million, or 18.2% of revenues, compared to $32.5 million, or 9.0% of revenues, in the third quarter of fiscal 2008.

• Net income was $43.9 million, or $0.67 per diluted share, compared to a net income of $19.0 million, or $0.30 per diluted share, in the third quarter of fiscal 2008.

Millard Drexler, J. Crew’s Chairman and CEO stated: “We are very pleased with our third quarter results. Regardless of the economic environment our long term mission does not change – it’s about product, it’s about quality, it’s about design, it’s about service, it’s about creativity. It might sound simple, but in this business sometimes the simplest things are the hardest to achieve.”

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First Nine Months highlights:

• Revenues increased 7% to $1,117.4 million. Store sales increased 11% to $799.9 million, with comparable store sales decreasing 0.4%. Comparable store sales decreased 0.4% in the first nine months of fiscal 2008. Direct sales rose by 1% to $289.0 million. Direct sales increased 14% to $285.9 million in the first nine months of fiscal 2008.

• Gross margin increased to 44.2% of revenues from 43.1% of revenues in the first nine months of fiscal 2008.

• Operating income increased 22% to $142.7 million, or 12.8% of revenues, compared to $117.1 million, or 11.3% of revenues, in the first nine months of fiscal 2008. Operating income in the first nine months of fiscal 2009 includes charges of approximately $5.3 million related to our workforce reduction, underperforming stores and lease termination actions.

• Net income was $82.9 million, or $1.29 per diluted share, compared to a net income of $67.7 million, or $1.06 per diluted share, in the first nine months of fiscal 2008.

Balance Sheet highlights as of October 31, 2009:

• Cash and cash equivalents were $246.8 million at the end of the third quarter compared to $114.5 million at the end of the third quarter of fiscal 2008.

• Inventories at the end of the quarter were $223.9 million, compared to $250.1 million at the end of the third quarter of fiscal 2008. Inventory per square foot at the end of the quarter decreased 17% compared to the end of the third quarter of fiscal 2008.

Guidance

The Company currently expects fourth quarter fiscal 2009 diluted earnings per share in the range of $0.37 to $0.42.

Conference Call Information

A conference call to discuss third quarter results is scheduled for today, November 24, 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 at www.jcrew.com. A replay of this call will be available until November 30, 2009 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 337405.

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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 November 24, 2009, the Company operates 243 retail stores (including 217 J.Crew retail stores, 9 crewcuts and 17 Madewell stores), the J. Crew catalog business, jcrew.com, and 78 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, our ability to compete with other retailers, the performance of the Company’s products within the prevailing retail environment, our strategy and expansion plans, systems upgrades, reliance on key personnel, 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)

(Amounts in thousands, except percentages and per share data)	Three Months Ended October 31, 2009			Three Months Ended November 1, 2008			Nine Months Ended October 31, 2009			Nine Months Ended November 1, 2008
Net sales
Stores	$	300,066		$	250,870		$	799,871		$	722,259
Direct		105,480			101,812			289,012			285,958
		405,546			352,682			1,088,883			1,008,217
Other		8,563			10,398			28,551			31,716
Total Revenues		414,109			363,080			1,117,434			1,039,933
Costs of goods sold, buying and occupancy costs		213,682			212,212			623,844			591,447
Gross Profit		200,427			150,868			493,590			448,486
As a percent of revenues		48.4	%		41.6	%		44.2	%		43.1	%
Selling, general administrative expenses		125,241			118,321			350,924			331,360
As a percent of revenues		30.2	%		32.6	%		31.4	%		31.9	%
Operating income		75,186			32,547			142,666			117,126
As a percent of revenues		18.2	%		9.0	%		12.8	%		11.3	%
Interest expense, net		1,052			570			3,207			4,370
Income before income taxes		74,134			31,977			139,459			112,756
Provision for income taxes		30,265			12,936			56,535			45,091
Net income	$	43,869		$	19,041		$	82,924		$	67,665
Income per share:
Basic	$	0.70		$	0.31		$	1.33		$	1.10
Diluted	$	0.67		$	0.30		$	1.29		$	1.06
Weighted average shares outstanding:
Basic		62,775			61,878			62,406			61,588
Diluted		65,223			64,078			64,317			64,127

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Exhibit (2)

J. Crew Group, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)	October 31, 2009		January 31, 2009		November 1, 2008
Assets
Current assets:
Cash and cash equivalents	$	246,785	$	146,430	$	114,456
Inventories		223,894		187,044		250,140
Prepaid expenses and other current assets		30,027		34,926		36,240
Income taxes receivable		—		23,116		6,918
Total current assets		500,706		391,516		407,754
Property and equipment, net		198,086		201,675		198,032
Other assets		19,683		20,618		31,302
Total assets	$	718,475	$	613,809	$	637,088
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable	$	117,823	$	119,719	$	134,576
Other current liabilities		92,022		83,889		84,415
Current portion of long-term debt		1,028		800		—
Deferred income taxes, net		4,049		4,049		—
Total current liabilities		214,922		208,457		218,991
Long-term debt		98,458		99,200		100,000
Deferred credits		69,015		73,815		74,378
Other liabilities		6,817		7,388		7,654
Stockholders’ equity		329,263		224,949		236,065
Total liabilities and stockholders’ equity	$	718,475	$	613,809	$	637,088

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Exhibit (3)

Actual and Projected Store Count and Square Footage*

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 (Actual)	300	12	2		310
2nd Quarter (Actual)	310	9	0		319
3rd Quarter (Actual)	319	2	1		320
4th Quarter (Projected)	320	1	0		321
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 (Actual)	1,864,133	52,185	(8,258	)	1,908,060
2nd Quarter (Actual)	1,908,060	38,166	0		1,946,226
3rd Quarter (Actual)	1,946,226	10,274	(2,872	)	1,953,628
4th Quarter (Projected)	1,953,628	4,512	0		1,958,140

* Above store count and square footage summary excludes three clearance store locations. One clearance store location was opened during the third quarter of Fiscal 2009.

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