J. Crew Revenue Falls in 2Q, But Web Sales Rise
"There's no question that our sales results are a disappointment," Mark Sarvary, CEO of J. Crew, said during the company's conference call. "Some of our styles and colors were too edgy and fashion-forward for our core customer. We're continuing to see catalog customers migrate to the Internet, with online sales representing nearly half of our total direct business in the second quarter."
Also reported during the call was that net sales in J. Crew's Direct business fell to $45.2 million from $50.7 million during the second quarter of last year. Within the direct business, Internet sales rose 19.3 percent to $21 million and catalog sales fell 27 percent to $24.2 million.
Earnings before interest, taxes, depreciation and amortization totaled $2.4 million as opposed to $6.5 million during second-quarter 2000.