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

ICR, Inc.

(203) 682-8200

J. CREW GROUP, INC. ANNOUNCES FIRST QUARTER FISCAL 2010 RESULTS

First Quarter Revenues Rise 20% to $413.9 million

First Quarter Diluted Earnings Per Share of $0.68

New York, NY – May 27, 2010 – J. Crew Group, Inc. [NYSE:JCG] today announced financial results for the three months ended May 1, 2010 (first quarter fiscal 2010).

First quarter highlights:

• Revenues increased 20% to $413.9 million. Store sales increased 20% to $290.0 million, with comparable store sales increasing 15%. Comparable store sales decreased by 5% in the first quarter of fiscal 2009. Direct sales (Internet and Phone) increased 20% to $114.4 million. Direct sales decreased by 6% to $95.4 million in the first quarter of fiscal 2009.

• Gross margin increased to 49.0% of revenues from 42.2% of revenues in the first quarter of fiscal 2009. The increase in gross margin is primarily related to decreased markdowns and promotional selling in the first quarter of 2010 compared to the first quarter of 2009.

• Operating income increased 113.8% to $75.4 million, or 18.2% of revenues, compared with operating income of $35.3 million, or 10.2% of revenues, in the first quarter of fiscal 2009.

• Net income was $44.7 million, or $0.68 per diluted share. Net income was $20.4 million, or $0.32 per diluted share, in the first quarter of fiscal 2009.

Millard Drexler, J. Crew’s Chairman and CEO stated: “We are very pleased with our first quarter results. We are and will continue to be focused on our mission – to innovate in our design, style, quality and customer service and to invest in our business, our associates and our customers for the long term.”

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Balance Sheet highlights as of May 1, 2010

• Cash and cash equivalents were $332.3 million at the end of the first quarter compared to $154.6 million at the end of the first quarter in the prior year.

• Inventories at the end of the first quarter were $193.1 million, compared to $193.9 million at the end of the first quarter of fiscal 2009. Inventory per square foot decreased 3.9% as compared to the end of the first quarter of fiscal 2009.

Guidance

The Company issued its initial guidance for the second quarter and updated its guidance for fiscal 2010. The Company currently expects second quarter fiscal 2010 diluted earnings per share in the range of $0.40 to $0.45 and fiscal 2010 diluted earnings per share in the range of $2.35 to $2.45, as compared to its previous guidance range for fiscal 2010 of $2.20 to $2.30 and fiscal 2009 diluted earnings per share of $1.91.

Conference Call Information

A conference call to discuss first quarter results is scheduled for today, May 27, 2010, 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 June 3, 2010 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 350714.

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 May 27, 2010, the Company operates 246 retail stores (including 220 J.Crew retail stores, 9 crewcuts and 17 Madewell stores), the J. Crew catalog business, jcrew.com, madewell.com, and 81 factory outlet stores. Additionally, certain product, press release and SEC filing information concerning the Company is 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, 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)

(In thousands, except percentages and per share data)	Three Months Ended May 1, 2010			Three Months Ended May 2, 2009
Net sales
Stores	$	289,981		$	240,726
Direct		114,355			95,360
		404,336			336,086
Other		9,543			9,684
Total Revenues		413,879			345,770
Costs of goods sold, buying and occupancy costs		211,281			199,833
Gross Profit		202,598			145,937
As a percent of revenues		49.0	%		42.2	%
Selling, general and administrative expenses		127,179			110,669
As a percent of revenues		30.7	%		32.0	%
Operating income		75,419			35,268
As a percent of revenues		18.2	%		10.2	%
Interest expense, net		627			1,077
Income before income taxes		74,792			34,191
Provision for income taxes		30,066			13,746
Net income	$	44,726		$	20,445
Income per share:
Basic	$	0.71		$	0.33
Diluted	$	0.68		$	0.32
Weighted average shares outstanding:
Basic		63,237			62,130
Diluted		66,053			63,319

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Exhibit (2)

J. Crew Group, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)	May 1, 2010		January 30, 2010		May 2, 2009
Assets
Current assets:
Cash and cash equivalents	$	332,302	$	298,107	$	154,578
Inventories		193,081		190,231		193,923
Prepaid expenses and other current assets		27,578		29,522		30,746
Prepaid income taxes		—		1,455		9,892
Total current assets		552,961		519,315		389,139
Property and equipment, net		189,986		194,615		205,683
Other assets		24,820		24,628		20,161
Total assets	$	767,767	$	738,558	$	614,983
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable	$	105,354	$	127,733	$	97,503
Other current liabilities		90,793		106,652		83,871
Current portion of long-term debt		—		—		1,100
Income taxes payable		17,699		—		—
Deferred income taxes, net		958		958		4,049
Total current liabilities		214,804		235,343		186,523
Long-term debt		49,229		49,229		98,900
Deferred credits		66,508		67,646		73,825
Other liabilities		10,474		10,462		7,361
Stockholders’ equity		426,752		375,878		248,374
Total liabilities and stockholders’ equity	$	767,767	$	738,558	$	614,983

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Exhibit (3)

Actual and Projected Store Count and Square Footage^{(Note 1)}

Fiscal 2010 Quarter	Total stores open at beginning of  the quarter	(Note 2) 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)	321	4	0	325
2nd Quarter (Projected)	325	3	1	327
3rd Quarter (Projected)	327	3	0	330
4th Quarter (Projected)	330	5	0	335

Fiscal 2010 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)	1,958,140	20,168	(615	)	1,977,693
2nd Quarter (Projected)	1,977,693	12,631	(7,822	)	1,982,502
3rd Quarter (Projected)	1,982,502	9,764	0		1,992,266
4th Quarter (Projected)	1,992,266	29,595	0		2,021,861

Note 1 –	Store count and square footage summary excludes three clearance store locations. Above summary also includes one factory store that is temporarily closed at the time of this announcement due to flooding.
Note 2 –	Actual and Projected number of stores opened during Fiscal 2010 by quarter:
	1st Quarter - two retail and two factory stores (Actual). 2nd Quarter - one retail, one factory and one Madewell store (Projected). 3rd Quarter - two retail and one Madewell store (Projected). 4th Quarter -three factory, one factory crewcuts and one Madewell stores (Projected).

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