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J. Crew Sales Tumble as Preppy Chain Struggles With Slow Traffic

J. Crew Group Inc.’s sales tumbled last quarter after the preppy-apparel chain struggled to win back customers and pull out of a two-year slump.
Source: J. Crew
By
  • Bloomberg

NEW YORK, United States — J. Crew Group Inc.'s sales tumbled last quarter after the preppy-apparel chain struggled to win back customers and pull out of a two-year slump.

Same-store sales — a closely watched measure — plunged 8 percent in the second quarter, the New York-based company said in a filing Wednesday. The figure marked the eighth straight quarter of declines and was slightly worse than the 7 percent drop it reported in the previous three months.

Chief executive officer Mickey Drexler blamed a "challenging traffic environment" for hurting business, though the latest results follow years of sluggish demand. Drexler has been trying to bring customers back to J. Crew after fashion missteps and price increases alienated shoppers.

As part of its turnaround plan, J. Crew announced Monday that it would sell a limited collection of women's clothing through Nordstrom Inc.'s stores and website. The retailer is also focused on expanding its younger, hipper Madewell brand and its off-price offerings.

J. Crew’s adjusted earnings before interest, taxes, depreciation and amortisation was $38.3 million in the second quarter, which ended July 30. That was down from $41 million a year earlier. Its net loss was $8.6 million, compared with $13.6 million a year ago.

“We are focused on driving sales productivity with exciting new merchandising and marketing initiatives,” Drexler said in the statement. “Overall, I am encouraged by the work that the teams are doing as we evolve our business.”

By Lindsey Rupp; editors: Nick Turner and Kevin Orland.

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