J.Crew Group, Inc., for its third quarter, announced, total revenue increase of 1 percent to 625.6 million dollars. The company’s comparable sales increased 3 percent following an increase of 8 percent in the third quarter last year. J.Crew brand sales decreased 4 percent to 415.8 million dollars, while its comparable sales were flat following an increase of 4 percent in the same quarter last year. Madewell brand sales increased 13 percent to 151.6 million dollars, while its comparable sales increased 10 percent following an increase of 22 percent in the third quarter last year.
Commenting on the third quarter trading, Michael J. Nicholson, President, Chief Operating Officer and Interim Chief Executive Officer of J.Crew said in a statement: “Our third quarter results reflect adjusted EBITDA growth of nearly 50 percent, marking our strongest third quarter performance in the last five years. We are also pleased to announce an agreement on the terms of a transaction that will enable the company to separate J.Crew and Madewell into two independent companies, pursue a proposed IPO of Madewell and recapitalize the company’s balance sheet.”
Total revenues for the nine-month period increased 2 percent to 1,793.0 million dollars, while the company’s comparable company sales increased 1 percent following an increase of 5 percent in the first nine months last year. J.Crew brand sales decreased 5 percent to 1,191 million dollars and comparable sales decreased 2 percent. Madewell sales increased 14 percent to 424.3 million dollars and its comparable sales increased 10 percent following an increase of 27 percent in the first nine months last year.
Gross margin for the third quarter increased to 40.7 percent from 38.3 percent in the third quarter last year. The company said, operating income was 11.5 million dollars compared to 32.7 million dollars in the third quarter last year, while net loss was 19.9 million dollars compared to 5.7 million dollars last year. Adjusted EBITDA increased 25.2 million dollars or 47 percent to 78.8 million dollars.
Gross margin decreased to 37.8 percent from 38.4 percent in the first nine months last year. Operating income for the period was 32.1 million dollars compared to 65.1 million dollars in the first nine months last year, while net loss was 80.3 million compared to 45.7 million dollars in the first nine months last year. Adjusted EBITDA increased 24.2 million dollars or 17 percent to 168.9 million dollars from 144.7 million dollars in the first nine months last year.