J. Crew considers IPO for its sister Madewell

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Clothing retailer J. Crew Group Inc. says it’s considering a possible initial public offering because of its successful Madewell brand.

The statement Thursday comes after the company that is fighting completed an overview of the options for the organization.

It states that a Madewell IPO, when pursued, may be performed as soon as the second half of the year.

Retail veteran Mickey Drexler led J. Crew for more than a decade, making it a coveted style brand before it hit on a multi-year earnings slump. He chased his ties with the company in January.

The information comes as some fashion businesses are trying to capitalize on a burgeoning IPO market. Denim giant Levi Strauss & Co. returned into the public marketplace in March because it stages a comeback even as it faces increasing competition and a changing retail landscape.

Some trend organizations are also looking to split their businesses up. Gap Inc. said in late February that it plans to split into two independent publicly traded companies — low-cost juggernaut Old Navy plus a yet-to-be named company, that will consist of the renowned Gap manufacturer, Banana Republic and the lesser known Athleta, Intermix and Hill City. This past year, VF Corp. said it’ll be dividing its own denim business complemented by Lee and Wrangler jeans into an independently traded company.

J. Crew recently started to add a wider variety of styles as a means to turn around its business. Meanwhile, Madewell has done with its timeless clothing. In its most recent financial year ended Feb. 2, J. Crew earnings fell 4% whereas Madewell’s sales jumped 26%.