J.Crew Group Inc., an omni-channel retailer of women’s, men’s and children’s apparels, shoes and accessories, has announced financial results for the third quarter and nine months of fiscal 2017.
During the quarter under review, the company’s total revenue decreased by 5 per cent to US $ 566.7 million. Comparable sales declined by 9 per cent compared to an 8 per cent drop in the corresponding quarter last year.
J.Crew’s net sales plunged 12 per cent to US $ 430.4 million.
However, operating income for the reporting quarter increased by to US $ 24.7 million from US $ 20.0 million in the same period last fiscal.
Gross margin increased to 40.1 per cent from 38.1 per cent in the third quarter of 2016. Meanwhile, net loss for the company was US $ 17.6 million compared to US $ 7.9 million last year.
During the nine-month period, the fashion player’s revenue tumbled 4 per cent to US $ 1,659.5 million. Sales were also dropped by 10 per cent to US $ 1,302 million.
Net loss remained US $ 161.6 million as against US $ 24.6 million in the corresponding nine months of 2016.
The disappointing results for J.Crew have come at a time when its fashion rivals are enjoying a positive business. GAP and Abercrombie & Fitch, to name a few, have noted improvements in their respective businesses during the recent quarter.
However, Jim Brett, Chief Executive Officer of J.Crew said that the company aims to revive the brand to reflect the America of today. Strategies will be placed to get the label back on profit making track.
