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NEW YORK, United States — J. Crew Group Inc., the retail chain that's said to be planning an initial public offering for later this year, has created a brand called "J. Crew Mercantile," potentially giving it a fresh store concept to boost sales.
The company filed an application on Nov. 25 to trademark the phrase for selling clothing and accessories, both online and in retail locations, according to a filing with the U.S. Patent and Trademark Office. The company plans to use the name to create a chain for budget shoppers, the Wall Street Journal reported today, citing people familiar with the situation.
J. Crew is seeking new sources of growth ahead of its possible IPO. The company, which was acquired by private-equity firms TPG Capital and Leonard Green & Partners LP more than three years ago, could fetch a valuation of as much as $5 billion, according to a person familiar with the situation.
The New York-based chain has been working to recover from a cutthroat holiday season, when rivals relied on deep discounts to attract shoppers. Net income tumbled to $5.92 million in J. Crew’s fourth quarter, down from $10.2 million a year earlier. Still, revenue grew almost 7 percent to $686.2 million in the period, which ended Feb. 1.
By Lindsey Rupp; Editors: Nick Turner, Cecile Daurat
