J. Crew remains in the red for second quarter, names new CFO
J.Crew Group, Inc. reported another net loss on Wednesday for the second quarter ended July 29.
The American group saw a 2 percent decrease in total revenue for the three-month period, dropping to $560.9 million.
Sales at the J. Crew brand decreased 7 percent to $443.1 million, with comparable sales down 7.5 percent.
Meanwhile, comparable sales for its Madewell brand still continued to climb by 11 percent in the second quarter. Total sales for Madewell rose by 19 percent to $93.1 million. Though Madewell sales are stronger, they are still much smaller and not enough to pull the retailer into the green.
The company's net loss totalled $20.7 million compared to $8.6 million in the second quarter last year.
As sales continue to slump, J.Crew announced the promotion of Vincent Zanna to Chief Financial Officer and treasurer effective immediately. Zanna was previously Senior Vice President of Finance and Treasurer.
Despite a bigger loss, new chief executive officer Jim Brett remained optimistic about the future of the company.
"Since joining J.Crew in July, I've come to a better understanding of how these iconic American brands can be made to play a more meaningful role in our lives. Overall, I am optimistic about the opportunities that lie ahead, particularly when reviewing the strong talent, capabilities and commitment within the organization,” said Brett, in a news statement.
“The team delivered solid progress on our transformation plan during the second quarter, highlighted by expansion in gross margin and reduced expenses that drove an increase in Adjusted EBITDA. And I am confident about evolving our brand strategy to drive long term profitable growth."
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