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.Crew Group, Inc. (NYSE:JCG) today announced financial results for the three months (Third Quarter) and nine months (First Nine Months) ended November 3, 2007.

  Third Quarter highlights:

  -- Revenues increased 21% to $332.7 million.  Store sales (Retail and
     Factory) increased 16% to $233.6 million, with comparable store sales
     increasing 8%. Realigning last year's calendar weeks to be consistent
     with the current year retail calendar weeks would result in a
     comparable store sales increase of 5% in the third quarter of fiscal
     2007.  Comparable store sales increased 19% in the third quarter of
     fiscal 2006.  Direct sales (Internet and Catalog) rose by 36% to $90.3
     million.  Direct sales increased 18% in the third quarter of fiscal
     2006.
  -- Operating income increased 44% to $47.7 million, or 14.3% of revenues,
     compared to $33.2 million, or 12.0% of revenues, in the third quarter
     of fiscal 2006.
  -- Net income available to common stockholders was $26.8 million, or
     $0.42 per diluted share, compared to $26.0 million, or $0.40 per
     diluted share, in the third quarter of fiscal 2006.  The current year
     period reflects an effective tax rate of 39.8% as compared to an
     effective tax rate of 7.1% in the third quarter of fiscal 2006.
  -- Adjusted net income for the third quarter of fiscal 2006 totaled $17.2
     million, or $0.27 per diluted share.  A reconciliation of net income
     on a GAAP basis to adjusted net income is included in Exhibit (3) of
     this press release.

Millard Drexler, J.Crew's Chairman and CEO stated: "We are pleased with our third quarter results, which reflect the strength of both our Store and Direct businesses and our ongoing commitment to great style, quality and design. Our focus continues to be on driving high quality earnings growth by investing in the areas where we get superior returns -- improving quality and design, differentiating our assortments and expanding our Store and Direct businesses."

  First Nine Months highlights:

  -- Revenues increased 19% to $934.8 million.  Store sales (Retail and
     Factory) increased 15% to $654.2 million, with comparable store sales
     increasing 8%.  Realigning last year's calendar weeks to be consistent
     with the current year retail calendar weeks would result in a
     comparable store sales increase of 6% in the first nine months of
     fiscal 2007.  Comparable store sales increased 16% in the first nine
     months of fiscal 2006.  Direct sales (Internet and Catalog) rose by
     29% to $251.4 million in the first nine months of fiscal 2007.  Direct
     sales increased 12% in the first nine months of fiscal 2006.
  -- Operating income increased 46% to $129.2 million, or 13.8% of
     revenues, compared to $88.3 million, or 11.2% of revenues, in the
     first nine months of fiscal 2006.
  -- Net income available to common stockholders was $72.1 million, or
     $1.13 per diluted share, compared to $27.7 million, or $0.62 per
     diluted share, in the first nine months of fiscal 2006.
  -- Adjusted net income for the first nine months of fiscal 2006 totaled
     $44.7 million, or $0.70 per diluted share.  A reconciliation of net
     income on a GAAP basis to adjusted net income is included in Exhibit
     (3) of this press release.

  Balance Sheet highlights as of November 3, 2007:

  -- Inventories at the end of the quarter were $210.8 million, reflecting
     the impact of 29 net stores opened since the end of the third quarter
     of fiscal 2006.  Additionally, the 53rd week in fiscal 2006 causes
     each quarter in 2007 to begin and end one week later, resulting in
     non-comparable point in time inventory increases.  The impact of the
     calendar shift increased inventory by approximately $15 million at the
     end of the quarter.
  -- Long-term debt was reduced to $125 million, which reflects the
     Company's voluntary principal prepayments of $75 million and $50
     million made during the first nine months of fiscal 2007 and the
     fourth quarter of fiscal 2006, respectively.

 Guidance

The Company's long-term annual financial targets include comparable store sales growth in the mid single-digit range, Direct sales growth in the high single-digits, net square footage expansion in the 7% to 9% range, and diluted EPS growth in excess of 20%.

Based on better than anticipated third quarter results, the Company currently expects fiscal 2007 diluted earnings per share in the range of $1.50 to $1.52, as compared to its previous guidance range of $1.42 to $1.46.

Use of Non-GAAP Financial Measures

In addition to providing financial results in accordance with GAAP, the Company has provided non-GAAP adjusted interest expense, income taxes, net income, preferred stock dividends and earnings per share information for the three and nine months ended October 28, 2006 in this release. This information reflects, on a non-GAAP adjusted basis, the Company's adjusted interest expense, income taxes, net income, preferred stock dividends, weighted average shares outstanding and earnings per share after considering the effects of transactions which resulted from the Company's initial public offering, refinancings and adjusted tax rates. This non-GAAP financial information is provided to enhance the user's overall understanding of the Company's current financial performance. Specifically, the Company believes the non-GAAP adjusted results provide useful information to both management and investors by adjusting the items discussed above that the Company believes are not indicative of future results. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, net income, earnings per share or other measures of financial performance prepared in accordance with GAAP. This non-GAAP information and a reconciliation of this information to GAAP amounts for the three and nine months ended October 28, 2006 are included in Exhibit (3).

Conference Call Information

A conference call to discuss third quarter results is scheduled for today, November 29, 2007, at 4:30 PM Eastern Time. Investors and analysts interested in participating in the call are invited to dial (888) 802-8577 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at www.jcrew.com. A replay of this call will be available until December 5, 2007 and can be accessed by dialing (877) 519-4471 and entering code 9473389.

About J.Crew Group, Inc.

J.Crew Group, Inc. is a nationally recognized multi-channel retailer of women's and men's apparel, shoes and accessories. As of November 24, 2007, the Company operates 198 retail stores (including four crewcuts and six Madewell stores), the J.Crew catalog business, jcrew.com, and 61 factory outlet stores. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company's website www.jcrew.com.