J. CREW’S SALES PLUMMET IN THIRD QUARTER
New York-based retailer J. Crew has reported another tough loss in the third quarter of 2017.
Total revenues decreased 5 percent to $566.7 million. Comparable company sales decreased percent. Net loss was $17.6 million compared to $7.9 million in the third quarter last year. Adjusted EBITDA increased $14.6 million, or 27 percent, to $67.9 million from $53.3 million in the third quarter last year.
The J Crew brand sales decreased 12 percent to $430.4 million, while J.Crew comparable sales decreased 12 percent. However, its women’s brand, Madewell, saw sales increase 22 percent to $107.5 million, while comparable sales increased 13 percent.
J. Crew also expects to close 50 stores this year, up from a previous target of 30. It had 574 stores as of October 28.
“Our goal is to reinvigorate the J.Crew brand to reflect the America of today and to continue to drive strong momentum in the Madewell Brand,” said CEO Jim Brett. “During the third quarter of fiscal 2017, we drove gross margin expansion and reduced SG&A by delivering on our expense initiatives. As we solidify longer term strategies, we will continue to leverage our strong brand equity and unique capabilities to expand our reach, accelerate growth and maximize profitability.”
