J.Crew Group, Inc. Announces Second Quarter Fiscal 2017 Results

Second Quarter highlights:
•Total revenues decreased 2% to $560.9 million. Comparable company sales decreased 5% following a decrease of 8% in the second quarter last year.
•J.Crew sales decreased 7% to $443.1 million. J.Crew comparable sales decreased 8% following a decrease of 9% in the second quarter last year.
•Madewell sales increased 19% to $93.1 million. Madewell comparable sales increased 11% following an increase of 3% in the second quarter last year.
•Gross margin increased to 38.6% from 35.7% in the second quarter last year.
•Selling, general and administrative expenses were $210.1 million, or 37.5% of revenues, compared to $196.5 million, or 34.5% of revenues in the second quarter last year. Excluding transformation costs of $14.0 million and transaction costs of $13.7 million (incurred in connection with the Company’s debt exchange and refinancing), selling, general and administrative expenses were $182.4 million, or 32.5% of revenues this year.
•Operating income was $2.6 million compared to $6.7 million in the second quarter last year. The second quarter this year includes transformation costs of $14.0 million and transaction costs of $13.7 million.
•Net loss was $20.7 million compared to $8.6 million in the second quarter last year. The second quarter this year includes the impact of transformation and transaction costs.
•Adjusted EBITDA increased $24.8 million, or 65%, to $63.1 million from $38.3 million in the second quarter last year.

Jim Brett, Chief Executive Officer, remarked, “Since joining J.Crew in July, I’ve come to a better understanding of how these iconic American brands can be made to play a more meaningful role in our lives. Overall, I am optimistic about the opportunities that lie ahead, particularly when reviewing the strong talent, capabilities and commitment within the organization. The team delivered solid progress on our transformation plan during the second quarter, highlighted by expansion in gross margin and reduced expenses that drove an increase in Adjusted EBITDA. And I am confident about evolving our brand strategy to drive long term profitable growth.”

First Half highlights:
•Total revenues decreased 4% to $1,092.9 million. Comparable company sales decreased 7% following a decrease of 7% in the first half last year.
•J.Crew sales decreased 9% to $871.6 million. J.Crew comparable sales decreased 10% following a decrease of 9% in the first half last year.
•Madewell sales increased 18% to $177.8 million. Madewell comparable sales increased 10% following an increase of 4% in the first half last year.
•Gross margin increased to 37.0% from 35.9% in the first half last year.
•Selling, general and administrative expenses were $420.6 million, or 38.5% of revenues, compared to $388.8 million, or 34.2% of revenues in the first half last year. Excluding transformation costs of $19.6 million, transaction costs of $16.2 million and severance costs of $10.7 million, selling, general and administrative expenses were $374.1 million, or 34.2% of revenues this year.
•Operating loss was $150.7 million compared with operating income of $14.0 million in the first half last year. The operating loss includes (i) non-cash impairment charges of $135.1 million, (ii) transformation costs of $19.6 million, (iii) transaction costs of $16.2 million, and (iv) severance costs of $10.7 million. Operating income last year includes non-cash impairment charges of $5.4 million.
•Net loss was $143.9 million compared to $16.7 million in the first half last year. The net loss this year reflects the impact of non-cash impairment charges, transformation costs, transaction costs, and severance costs. The net loss last year reflects the impact of non-cash impairment charges.
•Adjusted EBITDA increased $6.0 million, or 7%, to $89.7 million from $83.7 million in the first half 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).
details at: http://www.prnewswire.com/news-releases/jcrew-group-inc-announces-second-quarter-fiscal-2017-results-300508685.html?tc=eml_cleartime

Related Posts

Judge Blocks Key Provisions of Iowa Book Banning Law (publishersweekly.com)

In yet another legal victory for freedom to read advocates, a federal judge has blocked two key portions of SF 496, a recently passed Iowa state law that sought to ban books with sexual content from Iowa schools and to bar classroom discussion of gender identity and sexuality for students below the seventh grade. In a 49-page opinion and order, judge Stephen Locher criticized the law as “incredibly broad” and acknowledged that it has already resulted in the removal of “of hundreds of books from school libraries, including, among others, nonfiction history books, classic works of fiction, Pulitzer Prize–winning contemporary novels, books that regularly appear on Advanced Placement exams, and even books designed to help students avoid being victimized by sexual assault.”

Target Corporation Reports Fourth Quarter and Full-Year 2020 Earnings

The Company's total comparable sales grew 20.5 percent in the fourth quarter, reflecting comparable stores sales growth of 6.9 percent and digital sales growth of 118 percent. Total revenue of $28.3 billion grew 21.1 percent compared with last year, driven by sales growth of 21.0 percent and a 28.7 percent increase in other revenue. Operating income was $1.8 billion in fourth quarter 2020, up 53.2 percent from $1.2 billion in 2019. Full-year sales increased 19.8 percent to $92.4 billion from $77.1 billion last year, reflecting a 19.3 percent increase in comparable sales combined with sales from non-mature stores. Full-year revenue of $93.6 billion grew 19.8 percent compared with 2019, reflecting sales growth of 19.8 percent and an 18.2 percent increase in other revenue.

Wyndham Destinations Acquires Travel + Leisure Brand from Meredith Corporation in Strategic Alliance

Wyndham Destinations and Meredith Corporation announced that Wyndham Destinations has acquired the Travel + Leisure brand and all related assets from Meredith Corporation, combining the travel company’s portfolio of resort, membership, and lifestyle travel brands with the world’s most trusted travel lifestyle content curator and its travel clubs. “We acquired Travel + Leisure, including access to its global audience of 35 million loyal followers across multiple platforms and nearly 60,000 club members, because it matches our passion and purpose to put the world on vacation. Over the past 18 months, we have laid the foundation to expand our footprint beyond our core vacation ownership business, and today we add one of the most trusted and influential brands in travel through the acquisition of Travel + Leisure,” said Michael D. Brown, president and chief executive officer of Wyndham Destinations. “This iconic brand, along with its authoritative content and wide audience, will help accelerate and amplify the growth of new capital-light travel businesses and services, as we take the next step in expanding our reach within the global leisure travel industry.”
Back To Top
×Close search
Search