New Stocks: J. Crew
And now, it looks like J. Crew Group wants to get in on the action. The company’s legendary CEO, Millard “Mickey” Drexler, is no stranger to dealmaking. When he came on board in 2003, he took the company public. He then launched a going-private transaction in 2011.
For the most part, he has continued to manage things well at J. Crew. One of the most notable customers is Michelle Obama, who has become something of a fashion icon in the U.S.
Drexler has been able to convert the good PR and branding into nice financial results. In the second quarter, revenues increased by 6.4% to $559.1 million, and net operating income came to $55.8 million. The company currently operates 309 retail stores, 112 factory outlets and two clearance locations. That should make J. Crew one of the most fashionable new stocks in 2014.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.