Home / Knowledge / News / Apparel/Garments / Q2FY16 operating income crashes at J.Crew Group
Q2FY16 operating income crashes at J.Crew Group
31
Aug '15
Operating income at US based apparel marketer J.Crew Group crashed to $2.6 million in the second fiscal quarter ended August 1, 2015, massively down from $36.0 million in the prior fiscal second quarter.

“Operating income in the second quarter this fiscal includes a charge of $4.5 million for severance and related costs associated with our workforce reduction in June 2015,” the company explained in a press release.

Total revenues too decreased 5 per cent year over year to $593.6 million in the reporting quarter, while comparable company sales dipped higher at 11 per cent as against a 4 per cent hike in last fiscal's same quarter.

Of which, J.Crew sales brand sales fell 10 per cent from the fiscal ago period to $506.5 million, while its comparable sales declined 13 per cent following an increase of 3 per cent in the second quarter of last fiscal.

However, Madewell brand sales surged 22 per cent to $67.9 million in the second quarter of fiscal 2016 and its comparable sales grew 8 per cent, as against a 17 per cent rise in the same quarter of earlier fiscal.

The apparel marketer said its gross margin stood at 34.3 per cent for the quarter under review, down from 37.6 per cent in the second quarter of fiscal 2015. .

Selling, general and administrative expenses were comparatively flat at $199.8 million, or 33.6 per cent of revenues compared to 31.9 per cent of revenues in the same quarter of previous fiscal.

Net loss too rose higher at $13.6 million vis-à-vis net income of $10.8 million in the second quarter of last fiscal.

The company experienced a further significant reduction in the profitability of its J.Crew reporting unit, primarily driven by performance of women's apparel and accessories.

CEO Millard Drexler said, "Entering fall, we feel good about the assortments in stores and online, which reflect more emphasis on the key product categories that our customers love J.Crew for.”

“At the same time, our team has taken a hard look at the business and made changes to drive greater efficiency and profitability,” he added.

“We are focused on our performance in the second half of the fiscal and positioning the business for sustained growth," Drexler informed.

Cash and cash equivalents at the end of the second quarter of fiscal 2016 were $41.4 million as against $73.5 million at the end of the corresponding quarter last fiscal.

J.Crew further added that the second quarter this fiscal reflects the payment of a dividend of $19 million to fund the semi-annual interest payment due November 1, 2015. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search