J. Crew Group Widens Loss in Quarter Amid Sales Decline
The J. Crew brand continues to struggle while Madewell gains ground.
J. Crew Group’s net loss for the second quarter ended July 29 grew to $20.6 million, from $8.63 million in the year-ago period, according to a Securities and Exchange Commision filing. Revenues decreased 1.6 percent to $560.9 million, with comparable company sales down 4.8 percent.
J.Crew revenues decreased 7.1 percent to $443.1 million, with J.Crew comparable sales down 7.5 percent. Madewell revenues increased 18.9 percent to $93.1 million, with comparable sales up 11.2 percent.
Gross margin increased to 38.6 percent from 35.7 percent last year.
Three Madewell stores and one J.Crew factory store were opened during the quarter, while one J.Crew retail store and one J.Crew factory store closed. Also, during the last quarter, the company closed a debt exchange and refinancing.