First quarter highlights:    --  Revenues increased 2% to $345.8 million.  Store sales (Retail and       Factory) increased 5% to $240.7 million, with comparable store sales       decreasing 5%.  Comparable store sales increased 2% in the first       quarter of fiscal 2008.  Direct sales (Internet and Phone) decreased       6% to $95.4 million.  Direct sales increased 17% to $100.9 million in       the first quarter of fiscal 2008.   --  Gross margin decreased to 42.2% of revenues from 46.9% of revenues in       the first quarter of fiscal 2008.  The decrease in gross margin is       primarily related to increased markdowns as a result of beginning of       quarter inventory levels.   --  Operating income decreased 34% to $35.3 million, or 10.2% of revenues,       compared to $53.0 million, or 15.6% of revenues, in the first quarter       of fiscal 2008.  Operating income in the first quarter of fiscal 2009       includes a charge of $1.3 million for severance and related costs       associated with our workforce reduction announced in February 2009 and       non-cash asset impairment charges of $1.0 million related to       underperforming stores.    --  Net income was $20.4 million, or $0.32 per diluted share and includes       the impact of severance and asset impairment charges of approximately       $0.02.  Net income was $30.5 million, or $0.48 per diluted share, in       the first quarter of fiscal 2008.    

Millard Drexler, J. Crew's Chairman and CEO stated: "We are relatively pleased with our first quarter results and while earnings were lower than last year, we did experience an improved trend in our business. We think it is clear that there is no choice in this environment than to continue to be creative and figure out where the customer is going, not to respond to where he or she has been."

   Balance Sheet highlights as of May 2, 2009:    --  Cash and cash equivalents were $154.6 million at the end of the first       quarter compared to $121.5 million at the end of the first quarter in       the prior year.    --  Inventories at the end of the quarter were $193.9 million, reflecting       the impact of 43 net stores opened since the first quarter of fiscal       2008.  Inventory per square foot was flat to last year at the end of       the first quarter of fiscal 2008.     Guidance   

The Company currently expects second quarter fiscal 2009 diluted earnings per share in the range of $0.08 to $0.12.

Conference Call Information

A conference call to discuss first quarter results is scheduled for today, May 28, 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 http://www.jcrew.com/. A replay of this call will be available until June 4, 2009 and can be accessed by dialing (877) 660-6853 and entering account number 3055 and conference ID number 323565.

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.