For the fourth quarter, total revenues increased 2 per cent to $710.6 million, which includes $28.6 million generated in the 14th week. Comparable company sales decreased 3 per cent following a decrease of 5 per cent in the fourth quarter last year. J.Crew sales decreased 4 per cent to $547.1 million. Its comparable sales lowered 7 per cent following a decrease of 7 per cent in the fourth quarter last year.
Total revenues decreased 2 per cent to $2,370.1 million, which includes $28.6 million generated in the 53rd week. Comparable company sales decreased 6 per cent following a decrease of 7 per cent last year. J Crew sales fell 8 per cent to $1,849.1 million. J.Crew comparable sales decreased 10 per cent following a decrease of 8 per cent last year.
The company's net income was $36.6 million compared to $1.1 million in the fourth quarter last year. The fourth quarter this year includes a benefit for income taxes of $64.8 million. Additionally, the fourth quarter this year includes the impact of transformation costs, non-cash impairment charges, transaction costs and severance costs.
Adjusted EBITDA increased $13.1 million, or 25 per cent, to $64.6 million from $51.5 million in the fourth quarter last year. For 2017, adjusted EBITDA went up $33.7 million, or 18 per cent, to $222.2 million from $188.5 million last year.
"With our transformation strategy underway, we delivered gross margin expansion and double digit adjusted EBITDA growth in the fourth quarter and the full year. While we are only at the very beginning of our evolution of the J.Crew brand, meaningful change is happening and we are already seeing results in our most important business – women's apparel – signaling that our strategy is working. With the right strategy and leadership in place, we are uniquely prepared to respond to the growing customer preference for a more personalized experience. We will scale Madewell more rapidly, building upon its proven and consistent record of growth, through strategic investments with highly profitable returns. We are a house of American brands, J Crew our most iconic, all with significant opportunity to expand and enhance our product range while engaging our customers in more meaningful ways." Jim Brett, chief executive officer, said.
Cash and cash equivalents were $107.1 million compared to $132.2 million at the end of the fourth quarter last year. The cash balance at the end of the fourth quarter this year reflects the payment of transaction costs of $36.6 million and debt repayments pursuant to the refinancing of $27.0 million. Inventories were $292.5 million compared to $314.5 million at the end of the fourth quarter last year. Inventories decreased 7 per cent and inventories per square foot increased 1% compared to the end of the fourth quarter last year. (RR)
Fibre2Fashion News Desk – India
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