J. Crew Group, Inc. today announced financial results for the three months (second quarter) and six months (first six months) ended July 30, 2011. 

Second Quarter highlights: Revenues increased 7% to $435.0 million.  Comparable company sales increased 3% in the second quarter.  Comparable company sales increased 12% in the second quarter of fiscal 2010. Comparable company sales include comparable store sales, direct sales and shipping and handling revenues.  Store sales increased 5% to $311.0 million, with comparable store sales increasing 1%. Comparable store sales increased 11% in the second quarter of fiscal 2010.  Direct sales (Internet and Phone) increased 13% to $116.0 million.  Direct sales increased 16% to $102.5 million in the second quarter of fiscal 2010.  

Gross margin was 36.5% compared to 44.6% in the second quarter of fiscal 2010.  The decrease in gross margin was impacted by amortization of step-up in inventory value and the net impact of favorable/unfavorable store lease amortization which totaled $23.0 million that were recorded in connection with the acquisition.