J. Crew names finance head amid ongoing sales decline

J.Crew Group named an internal associate as CFO as the retailer continues to struggle to turn around its namesake brand.



The retailer announced that Vincent Zanna, previously senior VP of finance and treasurer, has been promoted to CFO and treasurer, effective immediately. He will continue to report to Michael Nicholson, who was previously CFO and COO, and now serves as president and COO.



J. Crew’s total revenue decreased 2% to $560.9 million for the quarter ended July 29. Total same-store sales dropped 5%. By brand, same-store sales fell 8% at J. Crew and increased 11% at Madewell.



J. Crew posted a net loss of $20.7 million, compared to $8.6 million in the second quarter last year. The second quarter includes the impact of transformation and transaction costs incurred in connection with the company's debt exchange and refinancing.



Adjusted earnings before interest, taxes, depreciation and amortization climbed 65% to $63.1 million from $38.3 million in the same quarter a year earlier, helped by a decline in the company's costs of goods sold.



"Overall, I am optimistic about the opportunities that lie ahead, particularly when reviewing the strong talent, capabilities and commitment within the organization," said Jim Brett, who took the reins as CEO in July. (He was previously president of West Elm.) "The team delivered solid progress on our transformation plan during the second quarter, highlighted by expansion in gross margin and reduced expenses that drove an increase in Adjusted EBITDA. And I am confident about evolving our brand strategy to drive long term profitable growth."



On the company's quarterly call with analysts, Nicholson said he remained "optimistic" about the future. He said that the company was "exploring all strategic opportunities to maximize growth and profitability."