J.Crew Q2 revenues decline 5 percent

J.Crew Group total revenues decreased 5 percent to 593.6 million dollars in the second quarter. Comparable company sales decreased 11 percent following an increase of 4 percent in the second quarter last year.

”Our performance in the second quarter was in line with our expectations. Entering fall, we feel good about the assortments in stores and online, which reflect more emphasis on the key product categories that our customers love J.Crew for. At the same time, our team has taken a hard look at the business and made changes to drive greater efficiency and profitability. We're focused on our performance in the second half of the year and positioning the business for sustained growth," said Millard Drexler, Chairman and Chief Executive Officer.

Strong drop in Q2 performance

J.Crew sales decreased 10 percent to 506.5 million dollars and comparable sales decreased 13 percent following an increase of 3 percent in the second quarter last year. Madewell sales increased 22 percent and comparable sales increased 8 percent following an increase of 17 percent in the second quarter last year.

Gross margin was 34.3 percent compared to 37.6 percent. Net loss was 13.6 million dollars compared with a net income of 10.8 million dollars in the second quarter last year. Adjusted EBITDA was 41 million dollars compared to 67.6 million dollars.

First Half results in negative

Total revenues decreased 4 percent to 1,175.5 million dollars and comparable company sales decreased 10 percent following an increase of 1 percent in the first half last year. J.Crew sales decreased 8 percent to 1,015.3 million dollars. J.Crew comparable sales decreased 12 percent after being flat in the first half last year.

Madewell sales increased 27 percent to 129.8 million dollars and comparable sales increased 10 percent following an increase of 15 percent in the first half last year. Gross margin was 35.7 percent compared to 38.1 percent in the first half last year. Operating loss was 518 million dollars compared with operating income of 70 million dollars in the first half last year. Net loss was 476 million dollars compared to 19.3 million dollars in the first half last year. Adjusted EBITDA was 85.8 million dollars compared to 132.3 million dollars.