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J. Crew Reports First Quarter Financial Results Operating Income Increases by 22% to $28 Million on a Revenue Increase of 14%

Contact:
James Scully
Chief Financial Officer
(212) 209-8040

Allison Malkin
Integrated Corporate Relations
(203) 682-8225

J. Crew Reports First Quarter Financial Results Operating Income Increases by 22% to $28 Million on a Revenue Increase of 14%

NEW YORK (June 7, 2006) — J.Crew Group, Inc. today announced its financial results for the first quarter ended April 29, 2006.

Consolidated revenues for the thirteen weeks ended April 29, 2006 increased by 14% to $240 million from $211 million last year. Stores sales (Retail and Factory) for the first quarter of 2006 increased by 15% to $167 million, with comparable store sales up 12%. Comparable store sales for the first quarter of 2005 were up 37%. Direct sales (Internet and Catalog) for the first quarter of 2006 increased by 12% to $66 million.

Gross margin was 45% in the 2006 first quarter compared to 46% in 2005. Selling, general and administrative expenses were $81 million (34% of revenues) in the 2006 first quarter compared to $74 million (35% of revenues) in 2005. Interest expense was up $2 million in 2006 primarily as a result of an increase in non-cash preferred stock dividends.

Operating income increased by $5 million to $28 million in the 2006 first quarter while net income was $8 million compared to $5 million last year.

There were no outstanding borrowings under the Company's working capital facility during the first quarters of 2005 and 2006.

J. Crew Group, Inc. is a nationally recognized multi-channel retailer of women's and men's apparel, shoes and accessories. The Company operates 164 retail stores, the J. Crew catalog business, jcrew.com, and 45 factory outlet stores.

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.
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.