J. Crew Posts Q1 Loss on Buyout Costs, Markdowns

In Industry News, Reports, What's New by Accessories StaffLeave a Comment

New York—J. Crew Group swung to a first quarter loss related to its acquisition in March and increases promotions and markdowns, the specialty retailer reported today.

Since the company was taken private in early MarchTGP in a $3 billion buyout by investors including private-equity firms TPG Capital, a former owner of J. Crew, and Leonard Green & Partners LP, the quarterly results include number “from before and after the acquisition, and while not directly comparable, the numbers provide a meaningful view of its operating results.”

For the quarter ended April 30, J. Crew reported a loss of $29.9 million, compared with prior-year earnings of $44.7 million. The latest report includes $32.2 million of costs related to the takeover.

Revenue decreased 1% to $409.5 million as comparable store sales fell 3%, partially offset a 5% increase to $120.4 million in its Internet and phone business. Direct sales increased 20% to $114.4 million. Comparable store sales had increased 16% in first quarter 2010.

Gross margin fell to 44.3% from 49% on increased markdowns and promotions as well as on acquisition-related costs. Selling, general and administrative expenses increased to $205.2 million from $127.2 million in the first quarter 2010.

It's only fair to share...
Share on FacebookTweet about this on TwitterPin on PinterestShare on LinkedInPrint this pageEmail this to someone