×
38 910
Fashion Jobs
H&M
Retail Flagship Visual Manager
Permanent · Chicago
ESTÉE LAUDER COMPANIES
Manager, Solution Architect- Omni Retail
Permanent · New York
TOM FORD BEAUTY
Vice President, Marketing, Tom Ford Beauty North America
Permanent · New York
ESTÉE LAUDER COMPANIES
Category Insights Manager - Supply Chain
Permanent · New York
ESTÉE LAUDER COMPANIES
Senior Account Coordinator, Estee Lauder Travel Retail – Americas
Permanent · Los Angeles
ESTÉE LAUDER COMPANIES
Manager, Product Manager
Permanent · New York
ALICE AND OLIVIA
Sales Supervisor - Town Center at Boca Raton
Permanent · Boca Raton
TIFFANY & CO
Coordinator, Human Resources
Permanent · New York
ROSS STORES
District Manager
Permanent · San Diego
ESTÉE LAUDER
Retail Beauty Sales Manager - Estee Lauder - (Henry Town) - Mcdonough, ga
Permanent · McDonough
BOBBI BROWN
Manager, Marketing - jo Malone London & Editions de Parfum Frédéric Malle, Travel Retail Worldwide
Permanent · New York
OLD NAVY
Loss Prevention Agent - Four Flaggs
Permanent · Niles
OLD NAVY
Unassigned Assistant Manager, Merchandising - The Plaza at Citrus Park
Permanent · Tampa
OLD NAVY
Assistant Manager, Customer Operations - Towne Ctr @ Laurel
Permanent · Laurel
OLD NAVY
Assistant Manager, Customer Operations - Memorial City Mall
Permanent · Houston
OLD NAVY
Assistant Manager, Merchandising - Freeport Vlg Station
Permanent · Freeport
OLD NAVY
Assistant Manager, Merchandising - sf Premium Outlet
Permanent · Livermore
OLD NAVY
Assistant Manager, Customer Operations - Arrowhead Crossing
Permanent · Peoria
OLD NAVY
Assistant Manager, Merchandising - Vintage Oaks
Permanent · Novato
OLD NAVY
Assistant Manager, Merchandising - Marketplace @ Hamden
Permanent · Hamden
OLD NAVY
Assistant Manager, Customer Operations - Lancaster Tanger
Permanent · Lancaster
OLD NAVY
Assistant Manager, Product Operations - Market at Birdcage
Permanent · Citrus Heights

Madewell to file for IPO, split from J.Crew

Published
today Sep 14, 2019
Reading time
access_time 3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Denim brand Madewell announced plans to split from J.Crew Group, Inc. and file for an initial public offering (IPO) on Friday, as its struggling parent company reported widening losses in the second quarter.


Madewell has consistently outperformed the J.Crew brand in recent quarters - Instagram: @madewell

 
A potential IPO has been on the cards for Madewell since April, when J.Crew announced the appointment of Michael J. Nicholson as its interim CEO and revealed that it was consulting its legal and financial advisors about a range of “strategic alternatives” for its flourishing denim business, including taking the brand public.
 
This possibility began to look a little more like a certainty in July, when Reuters reported that J.Crew had hired investment banks to help prepare for Madewell’s entry onto the stock market, citing three people familiar with the matter.

Friday’s SEC filing, made by Chinos Holdings, Inc. – the J.Crew subsidiary through which Madewell is operated – officially confirms the brand’s imminent split from its parent company, which has been privately owned by TPG Capital and Leonard Green & Partners since 2011.
 
Chinos, which will change its name to Madewell Group, Inc. prior to the completion of the offering, said that it will “use the proceeds of the IPO to repay indebtedness and for general corporate purposes.”
 
The company did not disclose the number of shares to be offered or the price range of the IPO.
 
The spin-off is the latest in a series of similar splits taking place in the US apparel industry this year. In May, VF Corporation spun off its denim business, which includes labels such as Wrangler and Lee, as Kontoor Brands, while Gap, Inc. recently gave an update on its upcoming separation from its Old Navy label, announcing that the turnaround of its namesake flagship brand will revolve around a renewed focus on jeanswear.
 
Much like these spin-offs, J.Crew Group’s split with Madewell aims to allow the company’s more successful business unit to push forward with growth-oriented strategies, while its remaining brands can focus on much-needed turnaround efforts.
 
All of the spin-offs also appear to be seeking to better position one of the resulting companies – Madewell, in the case of J.Crew Group – to take advantage of the resurgent popularity of denim, which is experiencing something of a comeback as the dominant athleisure trend from past seasons begins to wind down.
 
Madewell has been a consistent bright spot at J.Crew, a pattern reflected in the company’s latest quarterly results, which were also reported on Friday.
 
For the second quarter ended August 3, 2019, Madewell reported sales of $139.7 million, up 15% from the previous year, while the J.Crew brand’s revenues of $399.1 million reflected a decrease of 7%. Comparable sales increased 10% at Madewell and declined 4% at J.Crew.
 
 J.Crew Group’s total revenues for the quarter were therefore $588.8 million, essentially flat compared to the $587.6 million reported by the company in the prior-year period, with comparable sales decreasing 1%.
 
The group’s net loss came to $44.2 million, a significant deterioration from the loss of $6.1 million announced by the company in Q2 2018.
 
Taking into account the first quarter, when J.Crew Group managed to halve its losses, the company reported a net loss of $60.5 million in the first half of fiscal 2019, compared to $40.0 million in the same period in the previous.
 
J.Crew Group’s revenues in the period increased 4% to $1.17 billion, up from $1.13 billion, while comparable sales were essentially flat.

Copyright © 2019 FashionNetwork.com All rights reserved.