By the numbers, as outlined by CFO Amanda J. Bokman, consolidated revenues for Q4 were $264 million, up 26% from a year earlier. Retail sales rose to $183 million from $154 million, and comparable store sales were up a solid 17%. Revenues from direct sales (Internet and catalog) soared by 47% to $72 million. Gross margin was 39%, a number that was comparable to Q4 a year earlier.

Selling and related expenses were $82 million, or 31% of revenues, compared to $80 million, or 38% of revenues a year earlier. "The decrease as a percentage of revenues was driven primarily by operating leverage due to the significant increase in comparable store sales," Bokman told analysts.

And operating income increased to $20 million for the period, up $19 million from a year earlier.

During Q4, however, "the company redeemed $319 million of its long-term debt, consisting of $150 million of 10-3/8% senior subordinated notes due 2007 and $169 million of 16% senior discount contingent principal notes due 2008," Bokman told analysts. "Funds for the redemption consisted of $275 million in new term loan borrowed by the company, and internally available funds. These transactions will reduce annual interest expense by $16 million in 2005.

"As a result of these transactions, the company recognized a loss of $50 million, resulting from early redemption fees and the write-off of unamortized debt issuance discount and related fees," she continued. "Net loss for Q4 was $52 million, including the $50 million loss from the debt refinancing, compared to a loss of $20 million last year."

For the full year, consolidated revenues were up 17% to $804 million, Bokman reported. Retail sales rose to $580 million from $487 million, and comparable store sales were up 16%. Revenues from direct business rose 14% to $198 million for the year.

Gross margin, meanwhile, increased to 40% from 36% "because of improvements resulting from higher full price sell-through," according to Bokman. "Last year's margin was negatively impacted by the liquidation of obsolete inventories."

Selling and related expenses were $287 million, or 36% of revenues, down from $281 million and 41%. And operating income rose by $69 million to $38 million, compared to an operating loss of $31 million last year.p>Finally, the net loss for FY2004 was $100 million, Bokman reported, including the $50 million loss from debt refinancing. The previous-year loss was $91 million.

Bokman, who declined to take questions, revealed that the company opened five new stores in 2004 and closed four "underperforming locations," including one factory outlet. For 2005, J. Crew is projecting 10 new stores, including four factory outlets. The company currently operates 157 retail stores and 41 outlet units.

In a written statement, Millard Drexler, J. Crew's chairman/CEO said, "we are pleased with both our Q4 and full-year results. Our obsessive focus on quality, style and design, along with endless attention to our customers' needs, is reflected in this performance."