American fashion brand J. Crew Group has released its financial report for the first half of current fiscal.
Sales during the first six months of the current fiscal sunk 9 per cent to US $ 871.6 million. The company’s comparable sales got hit more when compared with the same period last year. It was down 10 per cent as against 9 per cent fall in the first half of 2016.
On the other hand, during the second quarter, J. Crew witnessed downfall in sales by 7 per cent to US $ 443.1 million.
J. Crew’s total revenue fell 4 per cent to US $ 1,092.9 million in the first half, whereas it decreased by 2 per cent to US $ 560.9 million during the second quarter itself.
Continuing the negative trend, the report further states that the net loss in the second quarter was US $ 20.7 million versus US $ 8.6 million in 2016. During the first half, the net loss reported by the company stands at US $ 143.9 million.
According to J. Crew, transformation costs; transaction costs; and the impact of non-cash impairment charges were the key factors behind the loss incurred by the company.
In 2016, it was just non-cash impairment charges which negatively affect the company and as a result, J. Crew suffered a US $ 16.7 million loss which is way less than the current year’s loss.
However, the rise in gross margin is somehow a positive sign for the brand. J. Crew noted a 38.6 per cent surge in gross margin in the second quarter of 2017 as against a 35.7 per cent increase in the corresponding period last year.
The report further shows that the company’s Adjusted EBITDA during the first six months of 2017 increased US $ 6 million to reach US $ 89.7 million, up 7 per cent from the previous year. Particularly in the second quarter, Adjusted EBITDA increased US $ 24.8 million year-on-year to settle at US $ 63.1 million.
Gross margin expansion and reduction in expenses resulted in an improved Adjusted EBITDA, claims J. Crew.
“I am optimistic about the opportunities that lie ahead and confident to drive long term profitable growth,” commented a confident Jim Brett, CEO, J. Crew.
