Catalog, Internet Hurt J. Crew Q1 Sales

Share this content:
J. Crew's net loss in its first quarter jumped to $23 million from $20 million in the prior year, the company said last week.


The increase was attributed to a newly required inclusion of preferred dividends ($8 million) as interest expense in 2004. Last year, these dividends were recorded as a direct charge to the stockholders' deficit. However, the company reduced its operating loss for the 13 weeks ended May 1 to $2 million from $10 million a year ago.


Despite the lower operating loss, consolidated revenue for the quarter decreased 10 percent to $145 million from $161 million in the comparable period last year. The decline resulted from a 34 percent drop ($19 million) in net sales in the direct business, which encompasses Internet and catalog operations. The anticipated falloff resulted from reductions in catalog pages, circulation and clearance sales.


The direct sector accounted for $36 million in the 13 weeks ended May 1, including $21 million in the Internet segment and $15 million in catalog. The total for the corresponding period ended May 3, 2003, was $55 million, including $37 million from Internet and $18 million for catalog.


Retail sales, including factory, increased to $104 million from $98 million last year with a comparable-store sales increase of 4 percent.


"Our conservative inventory strategy affected sales in the first quarter -- and we have since made appropriate adjustments in the current quarter to reflect recent trends in our business," chairman/CEO Millard Drexler said in a statement that also noted the company's new merchandise strategy and the revitalization of the brand.


close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above