Department Store

J. Crew's troubles showed no sign of easing in the first quarter as the retailer posted its 11th consecutive quarter of same-store sales declines.    Total sales fell 6.3% to $532 million in the quarter, ended April 29. Total same-store sales fell 9%.   By brand, J. Crew sales decreased 11% to $428.5 million; same-store sales fell 12%. Madewell sales increased 17% to $84.7 million; same-store sales increased 10%.   

Sears Canada isn't sure about its ability to remain a going concern.   The struggling retailer on Tuesday said it doesn't have enough cash flow over the next 12 months to meet its its obligations, and warned that it may have to restructure or be sold.  The company cited a "very challenging environment," and noted it has had recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014.    

The clear signal sent by these first quarter numbers is that J. Crew is a company in trouble. As much as the business is used to decline, the accelerated pace of deterioration, as evidenced by the 6.3% drop in overall sales and the 12% fall in J. Crew comparables, is worrying. That this weakness comes off the back of negative prior year numbers suggests that the company has not yet reached rock bottom.  

Sears Holdings is reducing headcount as part of its ongoing effort to deliver $1.25 billion in annualized cost reductions. It's also losing a key online executive.   Sears is eliminating some 400 full-time jobs at its corporate offices, in Hoffman Estates, Illinois, and from its support functions. In addition, certain positions at the chain's field operations will be impacted. The eliminated jobs represent less than half a percent of the 140,000 full-time and part-time employees Sears had as of the end of January.  

Gymboree has filed for Chapter 11 bankruptcy protection.    The retailer announced the filing, which had been expected, on Monday morning. The chain said it has partnered with AlixPartners to assist with turnaround efforts.   

Ascena Retail Group, operators of such brands as Ann Taylor, Lane Bryant and Dressbarn, is planning to close hundreds of stores. The news came on the heels of a brutal third quarter.   The company reported a net loss of $1.031 billion, or $5.29 per diluted share in the third quarter ended April 29, compared to net income of $15 million last year, or $0.08 per diluted share, in the year-ago quarter.   

Greg Portell, lead partner in the retail practice of A.T. Kearney, a global strategy and management consulting firm, answers a few questions regarding the news that Nordstrom may go private.    What does this move mean for Nordstrom — how might it play out?  

One of the nation's most successful department store retailers may remove itself from the scrutiny and pressure of Wall Street.