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J.Crew CEO on Disgruntled Customers: "Loyal As Hell Until We Go Wrong"

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Photo: Brian Harkin for Racked
Photo: Brian Harkin for Racked

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It's no secret that J.Crew's women's division has had a really hard year. During the company's quarterly earnings call today, the problem was put front-and-center: J.Crew CEO Mickey Drexler was questioned on everything from why customers walked away this past year to why J.Crew has been so heavily promotional lately. As to be expected, he got a little defensive.

Overall, Drexler chalked the whole issue up to a great brand with a great team that had a not-so-great year. He blamed bad sales on fit problems and decreased quality, which the company is trying to correct. When pressed, Drexler brought up the brand's "love rate." Without going into detail, he said it was a new way that J.Crew was measuring success rates and it's very high right now, thank you very much.

On the issue of non-stop sales, he confirmed that the company was worried about the way things were playing out. Again, it ties back to offering poor products to J.Crew customers. "She's loyal as hell until we go wrong, then she wants it on sale," Drexler explained. He's hoping that the new slew of products lined up for this year will restore trust in the brand, because, as he puts it, if you offer your customers the right product with the right fit, the right colors, and the right size for the right price, she'll buy even if it's not on sale.