J. Crew Considering Expanding its Madewell Brand

I found an interesting article here (published on June 25, 2008) about Madewell & J. Crew:

J. Crew could expand Madewell line
NEW YORK (AP) - A J. Crew Group Inc. executive on Wednesday said the company could make a decision about whether to expand its Madewell brand during the second half of the year. Chief Financial Officer Jim Scully made the remarks, which were webcast, during the Wachovia Nantucket Equity Conference.

J.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 U.S., including one in New York, and two more scheduled to open this year. The online store is scheduled to launch in July or August.

Other areas of development J. Crew is working on include its yoga activewear, which currently consists of 10 pieces. The line will likely double by the fall, Scully said. The New York company is also stage-testing jewelry, which is available in 120 stores so far, and should be in 150 stores by year-end.

What do you think about the possible expansion of Madewell? Are you excited or could care less? Also, what do you think about J.Crew "stage-testing jewelry" (although I am not sure what that means exactly)? :)