United States Of America : Net loss falls steeply at J.Crew Group in Q4FY16

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Net loss falls steeply at J.Crew Group in Q4FY16

21
Mar '16

Net loss at US based apparel marketer J.Crew Group fell steeply by 77 per cent for the three months or fourth fiscal quarter ended January 30, 2016.

“Net loss was $7.0 million in the reporting quarter compared to $30.6 million in the fourth quarter last fiscal,” a J.Crew press release said.

“The previous fiscal's fourth quarter reflects the impact of a pre-tax, non-cash impairment charge of $26.0 million,” the apparel marketer added.

Total revenues increased 1 per cent year over year to $711.0 million in the fourth quarter of fiscal 2016, while, comparable sales decreased 4 per cent.

Of overall sales, J.Crew brand sales fell 3 per cent to $604.5 million, while comparable sales too descended 5 per cent following the same decrease in the fourth quarter of last fiscal.

But, Madewell brand sales soared 26 per cent year on year to $92.5 million, while comparable sales rose 12 per cent following an increase of 14 per cent in the fiscal ago quarter.

For the quarter under review, gross margin was 33.3 per cent compared to 34.5 per cent in the earlier fiscal's comparable quarter.

In the reporting period, selling, general and administrative expenses were $228.8 million, or 32.2 per cent of revenues as against $236.2 million, or 33.5 per cent of revenues in the prior fiscal's fourth quarter.

Operating income for the fourth quarter of fiscal 2016 was $6.3 million vis-à-vis an operating loss of $18.7 million in the corresponding quarter of the previous fiscal.

“The last fiscal reflects the impact of a pre-tax, non-cash impairment charge of $26.0 million,” the apparel marketer observed in the press release.

CEO Millard Drexler said, "The fourth quarter represented a positive ending to a difficult fiscal and we believe we are better positioned having made changes in product and marketing.”

“Looking ahead, our team is focused on delivering further improvements in the business by executing on our strategic initiatives to deliver long term, sustained growth for our brands," Drexler too added.

Cash and cash equivalents were $87.8 million at January 30, 2016 compared to $111.1 million at the end of the fourth quarter ended January 31, 2015.

Total debt, net of discount, was $1,534 million compared to $1,548 million, while inventories were $372.4 million compared to $367.9 million at the end of the fourth quarter of earlier fiscal. (AR)

Fibre2Fashion News Desk – India

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