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Net loss climbs higher by 25% at J.Crew in Q3FY16
08
Dec '15
Net loss at apparel marketer J.Crew Group climbed higher by 25 per cent from a fiscal ago period in the third quarter of fiscal 2016.

In a press release, the company said its net loss in the third quarter of fiscal 2016 was $759.7 million compared to $607.8 million in the third quarter of last fiscal.

Total revenues too declined 6 per cent year over year to $619.4 million, while comparable sales fell higher at 11 per cent following a decrease of 2 per cent in the third quarter of prior fiscal.

Brand wise, J.Crew sales dropped 9 per cent over the previous fiscal's third quarter to $526.9 million and comparable sales dipped 12 per cent following a reduction of 3 per cent in last fiscal's third quarter.

However, Madewell sales increased 14 per cent to $78.7 million in the reporting quarter and comparable sales rose 1 per cent following a surge of 13 per cent in the same quarter of earlier fiscal.

“Gross margin in the quarter under review stood at 38.6 per cent compared to 40.2 per cent in the corresponding period of fiscal 2015,” the apparel marketer added.

Selling, general and administrative expenses totaled to $201.8 million, or 32.6 per cent of revenues as against 215.7 million or 32.9 per cent of revenues.

Operating loss was higher at $808.5 million in the reporting period vis-à-vis $636.3 million in the third quarter of prior fiscal.

“Both this fiscal and last fiscal reflect the impact of pre-tax, non-cash impairment charges of $845.9 million and $684.0 million, respectively,” it explained.

CEO Millard Drexler said, “While fiscal 2016 has been challenging, we have seen an encouraging response to our recent product and merchandising strategies.”

“Our team is focused on having a successful holiday season and we continue to execute on our plans to deliver improved performance over the longer term," he too added.

The company also named Michael Nicholson as president, COO and CFO effective January 11, 2016, who moves from Ann Inc where he served most recently as executive vice president, COO and CFO.

He will lead J.Crew's finance, global supply chain, sourcing, IT, real estate, asset management and investment management functions and report to Millard Drexler.

According to J.Crew, Nicholson's financial and operational experience and expertise in the retail and apparel industry will complement its business and support its growth and profit improvement initiatives. (AR)

Fibre2Fashion News Desk – India

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