J.Crew Group: Madewell sales up 39%; J. Crew brand to relaunch
The American group reported a total revenue of $540.5 million for the quarter ended May 5, 2018, up 3 percent. Strong growth at Madewell, the group’s younger and more casual brand, contributed to the company’s positive comparable sales in Q1 for the first time since 2014, while a brand relaunch was announced for J. Crew in the fall.
J. Crew saw sales fall in Q1 by 7 percent to $391.9 million, with comparable sales down 6 percent, narrowing slightly after a decrease of 11 percent in the first quarter last year. To alleviate J. Crew from its troubles, CEO Jim Brett is looking towards new tactics to help its flagship brand.
“As our strategy continues to unfold, we will deliver an expanded and enhanced product range along with the launch of a data-driven personalisation engine and point-based loyalty program, culminating in the J. Crew brand relaunch in September, just in time for the most important fall and holiday seasons," Brett said.
Madewell saw sales increase 39 percent to $115.8 million, during the quarter. Likewise, comparable sales increased 31 percent, almost tripling from the first quarter last year, where sales were up 11 percent. As a result, group sales increased 1 percent, following a decrease of 8 percent in the first quarter last year.
For the corporation, adjusted earnings before interest, taxes, depreciation and amortisation increased 28 percent, or $8 million, to $36.9 million from $28.9 million in the first quarter last year.
J. Crew Group operates 228 J. Crew stores, 121 Madewell stores, and 175 factory stores, including 42 J. Crew Mercantile stores, in addition to online stores for its brands.
This year, the company is closing 20 stores, opening one J. Crew store and 10 Madewell stores.
Copyright © 2023 FashionNetwork.com All rights reserved.