J.CREW LOOKS TO ITS MADEWELL BRAND FOR GROWTH AMONG MORE SLUGGISH SALES
J. Crew Group is trying to bounce back from years of sluggish sales through increasingly looking to its Madewell chain to carry the burden.
Though overall revenue increased just 2 percent last quarter to $710.6 million, it jumped 32 percent at Madewell to $135.8 million, the company said on Tuesday. The company’s namesake brand, J.Crew, saw a decrease of 4 percent to $547.1 million in the fourth quarter with comp sales down 7 percent.
For the entire fiscal year of 2017, Madewell drove the company sales with an increase of 23 perecent to $421.1 million, whereas the J.Crew brand decreased 8 percent to $1,849.1 million. Total sales for the company decreased 2 percent to $2,370.1 million for fiscal 2017.
“While we are only at the very beginning of our evolution of the J.Crew brand, meaningful change is happening and we are already seeing results in our most important business – women’s apparel – signaling that our strategy is working,” said Jim Brett, chief executive officer. “With the right strategy and leadership in place, we are uniquely prepared to respond to the growing customer preference for a more personalized experience. We will scale Madewell more rapidly, building upon its proven and consistent record of growth, through strategic investments with highly profitable returns. We are a house of American brands, J.Crew our most iconic, all with significant opportunity to expand and enhance our product range while engaging our customers in more meaningful ways.”
