Revenues for the fourth quarter of fiscal 2002 were $241.8 million compared to $246.7 million last year.

Comparable store sales declined 7.5%, and net sales in the Direct division decreased 6.2% for the period.

Net loss was $11.7 million versus net income of $6.7 million in the comparable period of 2001.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $16.2 million compared to $31.6 million last year.

Revenues for the 52 weeks ended February 1, 2003 were $766.4 million versus $777.9 million in fiscal 2001.

Comparable store sales declined 10.4%, and net sales in the Direct division decreased 4.0% for the year. Net loss was $31.6 million versus a net loss of $11.0 million in 2001.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $39.0 million compared to $53.3 million last year, which was in line with expectations of $53 million, ex-severance and other one-time employment related costs.

In January 2003, Millard S. Drexler, former CEO of Gap, Inc. was appointed Chairman and CEO.

In addition, Jeff Pfeifle, former Executive Vice-President at Old Navy was named President.

Mr. Drexler and Texas Pacific Group each invested $10 million, which added a net $10 million of liquidity to the Company after severance and other one-time employment related charges.

The Company also negotiated a new $180 million revolving credit facility with Congress Financial Corporation, which extends through December 2005.

"Given our difficult sales trend throughout 2002, we exercised tight control over costs and inventories," said Scott Rosen, J.Crew's Chief Financial Officer.

"Despite the decrease in sales, EBITDA was equal to last year before the one time employment related charges. In 2003, we'll continue to manage the business conservatively as our new management team focuses on rejuvenating the J.Crew brand. We reduced our capital expenditure plan for 2003 and continue to execute ongoing expense reductions."