Add

J. Crew second quarter revenues decline 5%

American upscale apparel brand J. Crew reports second quarter total revenues in decline by 5% to $593.6 million. Comparable company sales decreased 11% following an increase of 4% in the second quarter last year.  J.Crew sales decreased 10% to $506.5 million. J.Crew comparable sales decreased 13% following an increase of 3% in the second quarter last year.

Gross margin was 34.3% compared to 37.6% in the second quarter last year. Operating income was $2.6 million compared to $36.0 million in the second quarter last year. Operating income in the second quarter this year includes a charge of $4.5 million for severance and related costs associated with our workforce reduction in June 2015.

Net loss was $13.6 million compared with a net income of $10.8 million in the second quarter last year. Adjusted EBITDA was $41.0 million compared to $67.6 million in the second quarter last year.

Millard Drexler, Chairman and Chief Executive Officer, commented, “Our performance in the second quarter was in line with our expectations. Entering fall, we feel good about the assortments in stores and online, which reflect more emphasis on the key product categories that our customers love J.Crew for. At the same time, our team has taken a hard look at the business and made changes to drive greater efficiency and profitability. We’re focused on our performance in the second half of the year and positioning the business for sustained growth.”

For the first half of 2015, total revenues decreased 4% to $1,175.5 million. Comparable company sales decreased 10% following an increase of 1% in the first half last year.  J.Crew sales decreased 8% to $1,015.3 million. J.Crew comparable sales decreased 12% after being flat in the first half last year.  Gross margin was 35.7% compared to 38.1% in the first half last year.  Operating loss was $518.0 million compared with operating income of $70.0 million in the first half last year.

Net loss was $476.0 million compared to $19.3 million in the first half last year. The first half this year reflects the impact of non-cash impairment charges. The first half last year reflects the impact of a loss on refinancing. Adjusted EBITDA was $85.8 million compared to $132.3 million in the first half last year.

J. Crew store, London – Regent St.

CPP-LUXURY iOS App