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J.Crew Q3 revenues down, narrows net loss

By Prachi Singh

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Business

J.Crew Group said revenues decreased 4 percent to 593.2 million dollars for the third quarter, while comparable company sales decreased 8 percent following a decrease of 11 percent in the third quarter last year. J.Crew sales decreased 7 percent to 488 million dollars and comparable sales of this brand decreased 9 percent following a 12 percent decline in the third quarter last year.

Commenting on the third quarter results, Millard Drexler, Chairman and Chief Executive Officer, said in a company announcement, "Our third quarter results reflect ongoing traffic challenges and a highly promotional retail environment. While we expect these trends to persist through the fourth quarter, we continue to remain focused on driving sales productivity and carefully managing inventory and expenses."

Third quarter highlights

Madewell sales increased 12 percent to 88 million dollars and comparable sales increased 4 percent following an increase of 1 percent in the third quarter last year.

Gross margin was 38.1 percent compared to 38.6 percent, while operating income was 20 million dollars compared with an operating loss of 808.5 million dollars in the third quarter last year. Net loss was 7.9 million dollars compared to 759.7 million dollars in the third quarter last year. Adjusted EBITDA was 53.3 million dollars compared to 73.6 million dollars in the third quarter last year.

Review of the first nine months

Total revenues decreased 4 percent to 1,730.5 million dollars, while comparable company sales decreased 7 percent following a decrease of 10 percent in the first nine months last year. J.Crew sales decreased 6 percent to 1,445.5 million dollars and comparable sales decreased 9 percent following a decrease of 12 percent in the first nine months last year.

Madewell sales increased 15 percent to 238.7 million dollars and comparable sales increased 4 percent following an increase of 6 percent in the first nine months last year.

Gross margin was 36.6 percent compared to 36.7 percent, while net loss was 24.6 million dollars compared to 1,235.6 million dollars in the first nine months last year. Adjusted EBITDA was 137 million dollars compared to 159.4 million dollars in the first nine months last year.

Picture:J.Crew

J CREW