default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

J. Crew’s Sales Fall as Chain Faces ‘Challenging’ Retail Climate

J. Crew Group Inc.’s same-store sales declined 7 percent last quarter, a sign the preppy-apparel chain is still struggling to win back shoppers.
J. Crew | Source: Flickr/Mike Mozart
By
  • Bloomberg

NEW YORK, United States — J. Crew Group Inc.'s same-store sales declined 7 percent last quarter, a sign the preppy-apparel chain is still struggling to win back shoppers.

Total revenue decreased three percent to $567.5 million, the New York-based company said in a statement Wednesday. J. Crew’s gross margin also contracted, shrinking to 36.1 percent in the period from 37.2 percent a year earlier.

Chief executive officer Mickey Drexler cited a "challenging retail environment," which has hampered the company's comeback efforts. The chain, which was taken private by private equity firms in 2011, has been revamping products and marketing in a bid to restore its image as a leading retailer.

TPG, one of its private equity backers, cut the value of its stake in the company by 84 percent at the end of 2015. The firm told investors that its $478.6 million equity holding in J. Crew was lowered to $76 million, according to documents obtained by Bloomberg.

J. Crew’s adjusted earnings before interest, taxes, depreciation and amortization edged up to $45.4 million in the first quarter, compared with $44.8 million a year earlier.

The retailer’s 7.75 percent bonds maturing in 2019, which have lost half their value in the past year, rose more than two cents on the dollar to 42 cents on the dollar on Wednesday, according to Trace, the bond-pricing reporting system of the Financial Industry Regulatory Authority.

By Nick Turner; editor: Mark Schoifet.

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the ebb and flow of the fashion sector.


Kanye and Adidas, Johnny Depp and Dior: celebrity marketing can be a minefield as well as a goldmine — and social media has raised the stakes.



view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - An Inflection Point in Fashion Tech
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
BoF Professional Summit - An Inflection Point in Fashion Tech