The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — The J.Crew Group posted disappointing results on Wednesday as the company continues to reckon with the fallout of decisions made by former chief executive Jim Brett.
The news comes after a tumultuous few months at the group, which saw the exit of polarising chief executive Brett in November 2018, the retirement of longtime chairman and former chief executive Millard "Mickey Drexler" in January 2019 and the hiring of designer Chris Benz as head of J.Crew womenswear in February. The company has also made several changes on the marketing side, bringing back company veteran Mark DeMott to lead brand creative. At the same time, longtime J.Crew stylist Gayle Spannaus, credited with helping to develop the aesthetic made famous by former designer Jenna Lyons, has exited the company after a tenure of two decades.
All the while, the group, which has been run by a four-person executive committee since Brett's departure, is still searching for a CEO. While talks with leading candidate Stefan Larsson were still in motion just a few weeks ago, multiple sources familiar with the negotiations said that Larsson believed there was insufficient cash on the company's balance sheet to support a turnaround, and declined a concrete offer.
Nicholson also emphasised the importance of maintaining momentum at Madewell. For more than five years, the label has dominated the specialty retail landscape in the US by offering reasonably priced denim and separates that were perceived as being an aesthetic step above what was readily available at the mass level. However, some analysts believe the product — in particular, the denim, which makes up a third of its sales — has failed to evolve as much and as fast as needed as consumers move away from items like "skinny" jeans.
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For now, the company is focused on recalibrating the product at J.Crew, "fostering a strong Madewell community," and taking a "digital-first" approach to retail, according to Nicholson. However, any executive who joins J.Crew will face a tough task and likely need to be highly passionate about saving the brand itself, which, despite its failures, still maintains a certain allure and a place in the American fashion canon.
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