J. Crew’s chief design officer follows Jenna Lyons out the door

Last month, J. Crew reported that Q2 total revenues fell 2% to $560.9 million as same-store sales fell 5%, following a decrease of 8% in the second quarter last year. The company’s net loss in the quarter widened to $20.7 million compared to $8.6 million in the year-ago period and operating income tumbled to $2.6 million compared to $6.7 million last year. By brand, J.Crew sales fell 7% to $443.1 million and same-store sales fell 8% following a decrease of 9% in the second quarter last year; Madewell sales rose 19% to $93.1 million and same-store sales rose 11% following an increase of 3% in the second quarter last year.

This summer the company completed a debt maneuver[4] that entailed an exchange offer and refinancing, which extended the maturity of some loans and reduced the company’s debt by $300 million. But that simply won’t be enough for the beleaguered retailer, Davidowitz said. 

“Facts are nasty things and here are the facts,” he told Retail Dive last month. “Sales are down again, losses are up. Comparable sales fell 5%, which, given the number of closed stores, 5% looks pretty bad. $300 million gets them nowhere.”

References

  1. ^ joined the J. Crew design team in 2015 (www.retaildive.com)
  2. ^ also CEO Mickey Drexler (www.retaildive.com)
  3. ^ it’s exploring “strategic opportunities (www.retaildive.com)
  4. ^ completed a debt maneuver (www.retaildive.com)

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