J. Crew’s sales woes continue in Q2 2015

By

Obi Anyanwu

Published
Sep 1, 2015

J. Crew announced its financial results for second quarter and fiscal 2015. The company continues to struggle in sales for its namesake line as it tries to climb back to its recent popularity.

 
Total revenues for the company decreased 5% to $593.6 million and comparable company sales decreased 11% compared to a 4% increase in second quarter 2014. Sales for J. Crew decreased 10% to $506.5 million, and comparable sales decreased 13% following a 3% increase in the previous year. The Madewell business continues to improve, increasing 22% to $67.9 million and comparable sales increasing 8%.
 
Millard Drexler, Chairman and Chief Executive Officer, commented, "Our performance in the second quarter was in line with our expectations. We're focused on our performance in the second half of the year and positioning the business for sustained growth."

Ads

For the first half of fiscal 2015, total revenues decreased 4% to $1,175.5 million and comparable company sales for the period decreased 10% following an increase of 1% in the first half of fiscal 2014. J. Crew sales decreased 8% to $1,015.3 million and comparable sales decreased 12%, while Madewell sales increased 27% to $129.8 million and comparable sales increased 10%.
 
The company also reported a net loss of $476 million compared to $19.3 million in the previous year.
 
Mickey Drexler revealed that the brand will focus on what they call “heritage items,” which will include ballet flats, its cashmere and denim styles, and its popular Regent blazer and Jackie cardigan.
 
“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,” said Drexler. “At the same time, our team has taken a hard look at the business and made changes to drive greater efficiency and profitability.”