J. Crew Direct Sales Drop 47% in Q3
Troubled apparel retailer J. Crew Group Inc. reported Friday that its third-quarter revenue was down 20 percent to $151 million from $189.9 million in the year-ago period.Direct sales fell 47 percent as the New York company lowered catalog page counts and circulation as well as eliminated clearance and unprofitable books.
"These results are a necessary cost of our turnaround," Millard Drexler, chairman/CEO of J. Crew, said in a statement. "Most significantly, strategic changes in our promotional practices cost us markdown sales."
The net loss in the third quarter was $23.6 million. Net loss for the same period last year was $700,000.
However, third-quarter sales of full-price merchandise rose 30 percent on a comparable-store basis. The retailer said it is focusing on improving the quality of its merchandise, catalog, site at www.jcrew.com and stores.
More than half of all J. Crew sales originate online.
