The J.Crew Group disclosed another sales drop in its third quarter, despite strong Madewell sales which continues to be a profit making entity the struggling company. The Goup also announced plans to close 50 stores this year, up from a previous target of 30. The American retailer reported a 5 per cent drop in total revenues for the three-month period ending October 28, falling to $566.7 million. Comparable company sales decreased 9 per cent, following a fall of 8 per cent in the third quarter last year.
Sales fell 12 per cent at the New York-based company’s flagship brand in the third quarter, however, robust growth was delivered for its Madewell brand.
Madewell sales increased 22 per cent to $107.5 million, while comparable sales enhanced by 13 per cent. Despite this fact, Madewell sales were too minimal to alleviate J. Crew’s woes, which it has been fighting for the last two years.
Jim Brett, Chief Executive Officer of the Group said, "Our goal is to reinvigorate the J.Crew Brand to reflect the America of today and to continue to drive strong momentum in the Madewell Brand. During the third quarter of fiscal 2017, we drove gross margin expansion and reduced SG&A by delivering on our expense initiatives. As we solidify longer term strategies, we will continue to leverage our strong brand equity and unique capabilities to expand our reach, accelerate growth and maximise profitability.”
As of November 21, 2017, the company operates 269 J.Crew retail stores, 121 Madewell stores and 182 factory stores.