J. Crew Group Narrows Loss, Turnaround Progress Seen

J. Crew Group, citing “meaningful progress” in its turnaround efforts, narrowed its net loss in the first quarter to $16.2 million compared to $33.9 million in the first quarter last year. Total revenues in the quarter ended May 4 increased 7 percent to $578.5 million. Comparable company sales increased 1 percent. However, the corporation continues to be a tale of two divisions, with the J. Crew brand continuing to lose ground, while Madewell maintains strong momentum. Total sales at the J. Crew brand decreased 4 percent to $376.1 million; comparable sales decreased 1 percent. Madewell sales increased 15 percent to $132.9 million; comparable sales increased 10 percent. Adjusted earnings before interest, taxes, depreciation and amortization, which executives characterize as the best barometer for gauging the company’s performance, increased $11.4 million, or 31 percent, to $48.3 million from $36.9 million in the first quarter last year. “We are encouraged by the meaningful progress we have made in the first quarter, reporting a 31 percent increase in adjusted EBITDA driven by continued momentum at Madewell and the early impact of our swift actions to improve profitability at J. Crew,” said Michael J. Nicholson, interim chief executive officer. “As we look ahead, we are optimistic about our plans to reignite

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