J.Crew Q2 revenues rise 12 percent

REPORT_ J.Crew Group, announcing its financial results for the second quarter and first half of fiscal 2014

said that its revenues in the second quarter increased 12 percent to 627.2 million dollars, with comparable company sales increasing 4 percent. Store sales increased 11 percent to 443.5 million dollars on top of an increase of 4 percent in the second quarter last year. Direct sales increased 14 percent to 173.6 million dollars following an increase of 13 percent in the second quarter last year.

Revenues during the first half increased 9 percent to 1,219.2 million dollars, with comparable company sales increasing 1 percent. Comparable company sales increased 2 percent in the first half last year. Store sales increased 7 percent to 829.9 million dollars on top of an increase of 6 percent in the first half last year. Direct sales increased 13 percent to 370.6 million dollars following an increase of 18 percent in the first half last year.

Gross margin was 37.7 percent compared to 41.1 percent in the second quarter last year. Operating income was 36 million dollars, or 5.7 percent of revenues, compared to 55.8 million dollars, or 10.0 percent of revenues, in the second quarter last year. Net income was 10.8 million dollars compared to 17.5 million dollars in the second quarter last year. Adjusted EBITDA was 67.6 million dollars compared to 83 million dollars in the second quarter last year.

Gross margin was 38.2 percent compared to 42.9 percent in the first half last year. Operating income was 70 million dollars, or 5.7 percent of revenues, compared to 129.4 million dollars, or 11.5 percent of revenues, in the first half last year. Net loss was 19.3 million dollars compared with net income of 46.8 million dollars in the first half last year. Adjusted EBITDA was 132.3 million dollars compared to 184 million dollars in the first half last year.