Madewell sales thrive amidst stagnant J. Crew fiscal year
The sales woes continue for J. Crew. On the heels of debt restructuring rumors, the company reported on Tuesday decreases in full year and fourth quarter total revenues and comparable sales.
Full year total revenues decreased 3% to $2,425.5 million and comparable company sales decreased 7%. The J. Crew brand posted a 6% decrease in sales to $2,018.1 million, which could not be offset by a 14% increase in sales for Madewell.
The company increased its advertising for Madewell in the fourth quarter, running advertisements in subway cars during the holiday season. Madewell continues to post sales growth for the company, while the namesake label can’t find the same magic.
Operating income for the year was $49.0 million, compared to an operating loss of $1,320.2 million in the previous year, and net loss was $23.5 million, versus $1,242.7 in the prior year.
The fourth quarter was much better for the company, with net income increasing to $1.1 million compared to a net loss of $7.0 million in the prior year. Comparable company sales decreased 5% and the J. Crew brand fell 5% to $572.6 million. Madewell posted an 11% increase in sales to $102.9 million.
Operating income was $15.0 million in the quarter and adjusted EBITDA increased to $51.5 million from $44.0 million.
J. Crew expects its full year comparable company sales and J. Crew sales to decrease in the mid-single digit to low-single digit range, and for its full year Madewell comparable sales to increase in the low-single digit to mid-single digit range. As of March 18, 2017, comparable company sales fell 11%, with J. Crew sales falling 14% and Madewell sales increasing 7%.
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