Target Corp. is bringing back a beloved family film classic just in time for the holidays — and getting in some prime time high-profile marketing in the process. The retailer has teamed up with ABC to show “Mary Poppins.” It's the first time in more than 13 years that the movie has been shown on television. The movie will be aired on Dec. 12, from 8 – 11 pm EST on ABC, which is owned by Disney. Target will be the lone advertiser throughout the movie. It will air all of the advertising spots in the chain’s ongoing Holiday Odyssey campaign, which tells the tale of three kids, Bullseye and a large cast of kids’ favorite characters. In addition, the broadcast will include four custom shorts featuring Dick Van Dyke, a star of the movie, and Target’s Bullseye mascot as they explore Disney’s archives and look at various pieces of movie history. In a first for Disney, the spots are actually set inside the company’s archive warehouse.
First Quarter highlights:
•Total revenues increased 3% to $540.5 million. Comparable company sales increased 1% following a decrease of 8% in the first quarter last year.
•J.Crew sales decreased 7% to $391.9 million. J.Crew comparable sales decreased 6% following a decrease of 11% in the first quarter last year.
•Madewell sales increased 39% to $115.8 million. Madewell comparable sales increased 31% following an increase of 11% in the first quarter last year.
•Gross margin increased to 38.3% from 36.3% in the first quarter last year.
•Selling, general and administrative expenses were $200.8 million, or 37.2% of revenues, compared to $210.5 million, or 40.0% of revenues in the first quarter last year. This year and last year include transformation, transaction and severance costs of $6.5 million and $18.8 million, respectively. Excluding these costs, selling, general and administrative expenses were $194.3 million, or 36.0% of revenues, and $191.7 million, or 36.5% of revenues, for the first quarter of fiscal 2018 and fiscal 2017, respectively.
•Operating loss was $0.9 million compared to $151.0 million in the first quarter last year. This year includes (i) non-cash impairment charges of $6.9 million, (ii) severance costs of $3.7 million, (iii) transformation costs of $2.4 million and (iv) transaction costs of $0.4 million. Last year includes (i) non-cash impairment charges of $131.2 million, (ii) severance costs of $10.7 million, (iii) transformation costs of $5.6 million and (iv) transaction costs of $2.5 million.
•Net loss was $33.9 million compared to $121.0 million in the first quarter last year. This year and last year include the impact of non-cash impairment charges, transformation costs, transaction costs and severance costs.
•Adjusted EBITDA increased 28%, or $8.0 million, to $36.9 million from $28.9 million in the first quarter last year. An explanation of the manner in which the Company uses adjusted EBITDA and a reconciliation to comparable GAAP measures are included in Exhibit (3).
“2018 represents a pivotal year for the Company and we are encouraged by our strong start, delivering a 28% increase in adjusted EBITDA for the first quarter. J.Crew brand sales continue to sequentially improve toward positive comp, and Madewell had a record quarter with a 31% comp increase,” said Jim Brett, Chief Executive Officer. “Most significantly, for the first time since 2014, the Company achieved comparable sales growth. As our strategy continues to unfold, we will deliver an expanded and enhanced product range along with the launch of a data-driven personalization engine and point-based loyalty program, culminating in the J.Crew brand relaunch in September, just in time for the most important fall and holiday seasons.”
Balance Sheet highlights:
•Cash and cash equivalents were $36.0 million compared to $104.6 million at the end of the first quarter last year. The cash balance at the end of the first quarter this year reflects the payment of transaction costs of $35.2 million and debt repayments pursuant to the refinancing of $27.0 million.
•Inventories increased 6% to $345.3 million from $325.0 million at the end of the first quarter last year.
•Total debt, net of discount and deferred financing costs, was $1,711 million compared to $1,503 million at the end of the first quarter last year. On July 13, 2017, the Company completed a debt exchange and refinancing. For more information, see the section entitled “Debt Exchange and Refinancing” below. Additionally, there were $42 million of outstanding borrowings under the ABL Facility, with excess availability of $219 million, at the end of the first quarter this year. As of the date of this release, there were outstanding borrowings of approximately $27 million under the ABL Facility, with excess availability of approximately $217 million.
more detail at: https://www.prnewswire.com/news-releases/jcrew-group-inc-announces-first-quarter-fiscal-2018-results-300656771.html