American apparel retailer Crew Group Inc. has announced its results for the first quarter of the year ended April 30, 2016.
The retailer reported that its total revenues plunged 3 per cent to US $ 567.5 million in the review period. Comparable company sales also fell 7 per cent, following a drop of 8 per cent in the first quarter last year. J.Crew sales in particular declined 6 per cent to US $ 480.7 million. Its comparable sales slipped 8 per cent, post a decrease of 10 per cent in the first quarter last year. However, the Group states that Madewell sales surged 17 per cent to US $ 72.5 million, with comparable sales zooming 6 per cent.
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In the period under review, gross margin of the company was 36.1 per cent compared to 37.2 per cent in the first quarter last year. Operating income stood at US $ 7.3 million as against an operating loss of US $ 520.6 million in the same period last year. Net loss was US $ 8 million versus US $ 462.4 million in the corresponding quarter last year.
Commenting on the results, Millard Drexler, Chairman and Chief Executive Officer of the company averred, “Overall, we have been aggressive in managing all aspects of our business in a challenging retail environment while continuing to focus on delivering the very best product and brand experience for our customers across all channels. We look forward to the contributions from our assortment and merchandising strategies within our J.Crew brand, the continued growth of Madewell and Mercantile and other key operational initiatives including our SG&A, sourcing and supply chain optimization programs.”
