J Crew revenues fall as losses widen
Fashion retailer J Crew saw its revenue decrease by 2% to $560.9 million in its second quarter as it pushes on with its transformation plan.
Comparable sales fell by 5% in the period following a drop of 8% in the second quarter of last year.
As a result, the company made a net loss in the period of £20.7 million, which was up from a loss of $8.6 million in the previous year's second quarter.
Adjusted EBITDA rose by $24.8 million, or 65%, to $63.1 million from $38.3 million in the same period last year. This year’s figure includes the impact of transformation costs of $14 million and transaction costs of $13.7 million.
Jim Brett, J Crew’s recently appointed chief executive, said: "Overall, I am optimistic about the opportunities that lie ahead, particularly when reviewing the strong talent, capabilities and commitment within the organisation.
“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."
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