New York City An executive at J. Crew Group Inc. said on Wednesday that the company could make a decision about whether to expand its Madewell brand during the second half of the year, according to the Associated Press.
CFO Jim Scully made the remarks, which were Webcast, during the Wachovia Nantucket Equity Conference.
J.C. Crew began developing the line, which is lower priced than its J. Crew line and targets a slightly younger demographic, in 2006 and it is still classified as research and development.
"We decided that the second half of this year we were going to make a 'go or no go' decision," on Madewell," Scully said. "One thing we won't do is lose $15 million a year, we'll either lose zero or ramp up and be profitable."
Any ramp-up would take place in 2010 due to real estate issues, he said.
Currently, there are eight Madewell stores in the United States, including one in New York City, and two more are scheduled to open this year. The online store is scheduled to launch in July or August, the report said.