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J Crew defiant in the face of continuing losses

Troubled US retailer J Crew recorded a net loss of $123.3m (£97m) for the three months to 29 April, but told investors its full-year target of adjusted EBITDA of $190m to $210m (£149.5m to £165m) was still achievable.

Revenues sank 6% to $532m (£418.5m) for the period. Like-for-like sales continued on a downward trend, dropping 9% after a decline of 7% in the first quarter last year.

The main J Crew brand accounted for the slump, as sales decreased 11% to $428.5m (£336.9m).

The company’s young fashion sister brand Madewell provided a bright spot in otherwise gloomy news, with sales up 17% to $84.7m (£66.6m), though this was not enough to offset overall losses.

Outgoing CEO Mickey Drexler, who announced last week that he would step down to become chairman after 14 years leading the firm, said: “While we are disappointed with our first quarter earnings, we are optimistic regarding the work we have underway to improve our business. We have a clear vision and action plan in place to meet our customers’ needs - wherever and however they choose to shop.”

 

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