J.Crew sales continue to decline, names Michael Nicholson as COO and CFO

J.Crew Group total revenues for the third quarter decreased 6 percent to 619.4 million dollars. Comparable company sales decreased 11 percent following a decrease of 2 percent in the third quarter last year. J.Crew sales decreased 9 percent to 526.9 million dollars and comparable sales decreased 12 percent following a decrease of 3 percent in the third quarter last year.

”While fiscal 2015 has been challenging, we have seen an encouraging response to our recent product and merchandising strategies. Our team is focused on having a successful holiday season and we continue to execute on our plans to deliver improved performance over the longer term,” said Millard Drexler, Chairman and Chief Executive Officer.

Third quarter performance

Madewell sales increased 14 percent to 78.7 million dollars and comparable sales increased 1 percent following an increase of 13 percent in the third quarter last year.

Gross margin was 38.6 percent compared to 40.2 percent and operating loss was 808.5 million dollars compared to 636.3 million dollars in the third quarter last year. Net loss was 759.7 million dollars compared to 607.8 million dollars in the third quarter last year. Adjusted EBITDA was 73.6 million dollars compared to 80.9 million dollars.

First nine months highlights

Total revenues for the nine months decreased 4 percent to 1,794.9 million dollars. Comparable company sales decreased 10 percent after being flat in the first nine months last year.

J.Crew sales decreased 8 percent to 1,542.2 million dollars and comparable sales decreased 12 percent following a decrease of 1 percent in the first nine months last year. Madewell sales increased 21 percent to 208.5 million dollars and comparable sales increased 6 percent following an increase of 14 percent in the first nine months last year.

Gross margin was 36.7 percent compared to 38.8 percent in the first nine months last year and operating loss was 1,326.5 million dollars compared to 566.3 million dollars in the first nine months last year. Adjusted EBITDA was 159.4 million dollars compared to 213.1 million dollars in the first nine months last year.

Michael Nicholson roped in as COO and CFO

The company also announced that it has named Michael J. Nicholson President, Chief Operating Officer and Chief Financial Officer effective January 11, 2016. He was most recently executive vice president, COO, CFO and Treasurer of Ann Inc. He will lead J.Crew's finance, global supply chain, sourcing, IT, real estate, asset management and investment management functions and report into J.Crew's Chairman and CEO, Millard Drexler.

The company expects Nicholson's financial and operational experience and expertise in the retail and apparel industry to complement J.Crew's business and support its growth and profit improvement initiatives.