J. Crew Group'S Net Loss In The First Quarter Narrowed Its Total Sales, An Increase Of 7% Over The Same Period Last Year.

Despite the decline in flagship brand J.Crew sales, the US fashion group J.Crew Group has been growing steadily due to the steady growth of Madewell brand.

Quarterly net sales increased by 7% over the same period last year, while losses narrowed.

In the first quarter of May 4th, sales of J.Crew group increased 7% to $578 million 500 thousand compared with the same period last year. Adjusted EBITDA (profit and tax before depreciation and amortization) increased by 31% to US $48 million 300 thousand, and net loss narrowed to US $162 million 300 thousand, down from 339 million 200 thousand US dollars in the same period last year.

Michael J.Nicholson, J.Crew group's interim chief executive, said: "we achieved the best results in the first quarter. The adjusted EBITDA increased by 31% over the same period last year, thanks to the steady growth of Madewell brand sales and a series of measures to promote profitability for J.Crew.

We believe that through the new design, product and brand expression, J.Crew brand will be reborn.

As for Madewell, we will continue to maintain its steady growth momentum and strive to make it an international leading brand.

It is reported that J.Crew Group intends to separate the Madewell from the independent listing and maximize the value of the brand so as to solve the debt maturity problem that the group will face in 2021.

Details of the IPO have not yet been disclosed.

Madewell recently opened its first men's clothing store and launched swimwear and sports shoes.

Michael Nicholson said: "Madewell brand accounts for 1/3 of group sales.

We have to ensure that it will continue to perform well in the market and expand its business scope rapidly. "

In addition, since last year's Jim Brett dismounted the group CEO post, J.Crew group has not announced the replacement candidate, temporarily by Michael Nicholso as temporary CEO position.

It is unclear whether the J.Crew group has found the right person.

As of the first quarter, the J.Crew Group operates 195 J.Crew brand retail outlets, 132 Madewell brand stores and 173 factory shops (41 of which are J.Crew and Mercantile double brand stores) and three brand e-commerce websites.

In the first quarter of May 4th, the key financial data of J.Crew group were as follows:

Net sales increased 7% to $578 million 500 thousand over the same period last year.

Comparable store sales increased by 1% over the same period last year.

Gross profit margin was 37%, down from 38.3% in the same period last year.

Operating profits turn to a profit of 22 million 100 thousand US dollars.

Net loss of $162 million 300 thousand, down from $339 million 200 thousand in the same period last year.

Adjusted EBITDA (profit before tax depreciation and amortization) increased by $11 million 400 thousand (31%) to $48 million 300 thousand.

By brand

J.Crew sales fell 4% to 376 million 100 thousand US dollars compared to the same period last year, and comparable sales fell 1% from the same period last year, down from 6% in the same period last year.

Madewell sales increased 15% to $132 million 900 thousand compared to the same period last year, and comparable sales increased by 10% over the same period last year, down from 31% in the same period last year.