First Quarter highlights: •Total revenues decreased 6% to $532.0 million. Comparable company sales decreased 9% following a decrease of 7% in the first quarter last year. •J.Crew sales decreased 11% to $428.5 million. J.Crew comparable sales decreased 12% following a decrease of 8% in the first quarter last year. •Madewell sales increased 17% to $84.7 million. Madewell comparable sales increased 10% following an increase of 6% in the first quarter last year. •Gross margin was 35.4% compared to 36.1% 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. The net loss this year reflects the impact of (i) the non-cash impairment charges and (ii) the charge for severance and related costs. The net loss last year reflects the impact of non-cash impairment charges. Click Read More below for additional detail.
Hearst Magazines today announced an evolution of its corporate sales and marketing structure, as well as new business leadership roles and responsibilities across its portfolio. The announcement was made by Hearst Magazines President Troy Young and Michael A. Clinton, who served as Hearst Magazines president, marketing and publishing director for nine years.
“With the proliferation of distribution channels and choices today—print, digital, social and video—media buying has become increasingly complex,” Young said. “This new approach simplifies the process for advertisers and agencies, providing innovative solutions, first-to-market ad products and a seamless ad buying experience across all of our brands and platforms.”
New leadership roles include:
•Jeffrey Hamill has been elevated to executive vice president, chief media officer for Hearst Magazines. In this newly created role, Hamill, who has served as executive vice president of sales and marketing for Hearst Integrated Media since 2012, will have oversight of all corporate contract negotiations, pricing strategy and agency partnerships.
•Todd Haskell has been promoted to senior vice president, chief marketing officer for Hearst Magazines. Haskell, who has been driving digital sales revenue growth for Hearst Magazines as senior vice president, chief revenue officer since 2013, will be responsible for all corporate marketing functions for the company. He will also work closely with the marketing teams across the division’s portfolio of brands, while leading Hearst Magazines’ marketplace positioning and communications.
•Tom Kirwan has been elevated to vice president, chief revenue officer of Hearst Media Solutions, a recently integrated corporate group that provides multi-platform, multi-brand client solutions and delivers a unified approach to the market. In his new role, Kirwan, who has been vice president of national sales and key accounts for the digital division of Hearst Magazines since 2013, will be responsible for corporate revenue across all platforms for the company’s portfolio of more than 25 brands, working in partnership with Hamill.
The new corporate sales and marketing functions are part of the succession plan following the recent retirement of Clinton, who, after being with the company for over two decades, is currently a senior media advisor for Hearst. The appointments are the latest in a series of publishing executive promotions at the company this year, which include Nancy Berger, who was elevated to senior vice president, publishing director and chief revenue officer of Cosmopolitan, Seventeen and Women’s Health; Town & Country Vice President, Publishing Director and Chief Revenue Officer Jennifer Levene Bruno, who added oversight of ELLE DECOR, House Beautiful and VERANDA to her purview; Carol Smith, who was elevated to senior vice president, publishing director of Harper’s BAZAAR, ELLE and Marie Claire; and Blair Hecht, who was named publisher of Marie Claire.
“Jeff, Todd and Tom are incredible assets to our continued growth,” Clinton said. “They are deeply rooted in our brands and will bring the same dedication, creativity and business acumen to their new roles, furthering Hearst Magazines’ reputation as the most innovative media partner for the hundreds of clients we serve each year.”
Hamill, Haskell and Kirwan will report to the company’s new chief business officer, for whom a search is underway, with Haskell working closely with Young to further the company’s leadership position in the marketplace. All appointments are effective Tuesday, September 3.