J. CREW POSTS ENORMOUS NET LOSS FOR FIRST QUARTER
National retailer J.Crew Group, Inc has announced financial results for the three months ended April 29, 2017.
Adjusted EBITDA was $26.6 million compared to $45.4 million in the first quarter last year. Net loss was $123.3 million compared to a net loss of $8.0 million in the first quarter last year
Total revenues decreased 6 percent to $532.0 million, while comparable company sales decreased 9% following a decrease of 7 percent in the first quarter last year. Sales of the J. Crew brand decreased 11 percent to $428.5 million, and J.Crew comparable sales decreased 12 percent.
“While we are disappointed with our first quarter earnings, we are optimistic regarding the work we have underway to improve our business. We have a clear vision and action plan in place to meet our customers’ needs – wherever and however they choose to shop,” said Millard Drexler, the company’s chairman and outgoing CEO.” I look forward to transitioning my role to chairman and to working with our new CEO, Jim Brett, as he takes the reins in July and continues to position J.Crew for long term success.
Indeed, J Crew reaffirmed its fiscal year guidance: its adjusted EBITDA is expected to be in the range of $190 million to $210 million, which includes an anticipated $50 million benefit driven primarily by lower product costs and other efficiencies in connection with its strategic sourcing and supply chain initiative.