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J.Crew reports 5 percent drop in Q4 comparable sales

By Prachi Singh

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Management

Revenues in the fourth quarter at J.Crew Group decreased 2 percent to 695 million dollars, while comparable company sales decreased 5 percent following a decrease of 4 percent in the fourth quarter last year. Total revenues for the whole year decreased 3 percent to 2,425.5 million dollars and comparable company sales decreased 7 percent following a decrease of 8 percent last year.

Commenting on the company’s performance, Millard Drexler, Chairman and CEO said in a press release, "While the overall retail environment remains challenging, we continue our disciplined management of expenses and inventory and remain focused on delivering the very best, iconic J.Crew and Madewell products our customers love across all channels. As a team, we are taking important steps to drive improved operational excellence across the company."

Fourth quarter results review

J.Crew sales decreased 5 percent to 572.6 million dollars and comparable sales decreased 7 percent following a decrease of 5 percent in the fourth quarter last year. Madewell sales increased 11 percent to 102.9 million dollars, while comparable sales increased 6 percent following an increase of 12 percent in the fourth quarter last year.

Gross margin was 34.7 percent compared to 33.3 percent in the fourth quarter last year. Operating income reached 15 million dollars compared to 6.3 million dollars in the fourth quarter last year and net income was 1.1 million dollars compared with a net loss of 7 million dollars in the fourth quarter last year. Adjusted EBITDA was 51.5 million dollars compared to 44 million dollars, same quarter last year.

J.Crew sales decline 6 percent in fiscal 2016

J.Crew sales decreased 6 percent to 2,018.1 million dollars, while comparable sales decreased 8 percent following a decrease of 10 percent last year. Madewell sales increased 14 percent to 341.6 million dollars, and comparable sales increased 5 percent following an increase of 8 percent last year.

Gross margin was 36.1 percent compared to 35.7 percent last year. Operating income was 49 million dollars compared with an operating loss of 1,320.2 million dollars last year. Net loss was 23.5 million dollars compared to 1,242.7 million dollars last year. Adjusted EBITDA was 188.5 million dollars compared to 203.4 million dollars last year.

For fiscal 2017, J.Crew Group expects total revenues to range from a decline at lower single digits to increase at lower single digits, comparable company sales are expected to decline between mid-single digits to lower single digit and adjusted EBITDA to range between 190 to 210 million dollars.

Picture:J.Crew blog

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