Home / Knowledge / News / Apparel/Garments / J Crew total revenue down 2% to $560.9 mn in Q2 FY17
J Crew total revenue down 2% to $560.9 mn in Q2 FY17
27
Aug '17
Courtesy: JCrew
Courtesy: JCrew
Total revenues of J Crew decreased 2 per cent to $560.9 million in the second quarter of fiscal 2017. Comparable company sales decreased 5 per cent following a decrease of 8 per cent in Q2 last year. Its sales also decreased 7 per cent to $443.1 million and the comparable sales decreased 8 per cent following a decrease of 9 per cent in Q2 FY17.

Madewell sales increased 19 per cent to $93.1 million. Madewell comparable sales increased 11 per cent following an increase of 3 per cent in the second quarter last year. The company’s gross margin increased to 38.6 per cent from 35.7 per cent in the second quarter last year.

Selling, general and administrative (SGA) expenses were $210.1 million, or 37.5 per cent of revenues, compared to $196.5 million, or 34.5 per cent of revenues in the second quarter last year. Excluding transformation costs of $14 million and transaction costs of $13.7 million (incurred in connection with the company's debt exchange and refinancing), SGA expenses were $182.4 million, or 32.5 per cent of revenues this year, said the company in a press release.

Operating income was $2.6 million compared to $6.7 million in the second quarter last year. The second quarter this year includes transformation costs of $14 million and transaction costs of $13.7 million.

J Crew’s net loss was $20.7 million compared to $8.6 million in the second quarter last year. The second quarter this year includes the impact of transformation and transaction costs.

Adjusted EBITDA increased $24.8 million, or 65 per cent, to $63.1 million from $38.3 million in the second quarter last year.

"Since joining J Crew in July, I have come to a better understanding of how these iconic American brands can be made to play a more meaningful role in our lives. Overall, I am optimistic about the opportunities that lie ahead, particularly when reviewing the strong talent, capabilities and commitment within the organisation. The team delivered solid progress on our transformation plan during the second quarter, highlighted by expansion in gross margin and reduced expenses that drove an increase in Adjusted EBITDA. And I am confident about evolving our brand strategy to drive long term profitable growth," said Jim Brett, chief executive officer, J Crew.

During the first half, total revenues decreased 4 per cent to $1,092.9 million. Comparable company sales decreased 7 per cent following a decrease of 7 per cent in the first half last year. J Crew sales decreased 9 per cent to $871.6 million and its comparable sales decreased 10 per cent following a decrease of 9 per cent in the first half last year.

Madewell sales increased 18 per cent to $177.8 million and comparable sales increased 10 per cent following an increase of 4 per cent in the first half last year. Gross margin of the company increased to 37 per cent from 35.9 per cent in the first half last year.

SGA expenses were $420.6 million, or 38.5 per cent of revenues, compared to $388.8 million, or 34.2 per cent of revenues in the first half last year. Excluding transformation costs of $19.6 million, transaction costs of $16.2 million and severance costs of $10.7 million, SGA expenses were $374.1 million, or 34.2 per cent of revenues this year.

Operating loss of the company was $150.7 million compared with operating income of $14 million in the first half last year. The operating loss includes non-cash impairment charges of $135.1 million, transformation costs of $19.6 million, transaction costs of $16.2 million, and severance costs of $10.7 million. Operating income last year includes non-cash impairment charges of $5.4 million.

Net loss was $143.9 million compared to $16.7 million in the first half last year. The net loss this year reflects the impact of non-cash impairment charges, transformation costs, transaction costs, and severance costs. The net loss last year reflects the impact of non-cash impairment charges.

Adjusted EBITDA increased $6 million, or 7 per cent, to $89.7 million from $83.7 million in the first half last year. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 21st Feb 2020

France unveils environment score system for apparel

France has launched a system under which apparel may now display a...

Pic: Shutterstock

Textiles | On 21st Feb 2020

Indian textiles ministry to back small-scale firms

The Indian textiles ministry will contact small-scale manufacturers...

Pic: Shutterstock

Fashion | On 21st Feb 2020

Sycamore Partners buys 55% stake in Victoria's Secret

Sycamore Partners has acquired a 55 per cent stake in Victoria's...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Technical textiles industry moving back to Europe

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Sonia Agarwal, Whitenife

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Alphonse Reddy,

Alphonse Reddy

Bangalore-based Sunday designs and makes mattresses and accessories that...

Awanda Booth,

Awanda Booth

Held every year in New York City, Surtex is a global business-to-business...

Henk-Jan Rohaan,

Henk-Jan Rohaan

The custom-built machineries of Brugman Holland are known for reliability, ...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

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

Leave your Comments


February 2020

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


Advanced Search