J. Crew narrows loss but sales still falling

J.Crew Group Inc. managed to narrow its loss in the first quarter even as it continued to struggle with sluggish sales.



The retailer’s net loss for the quarter totaled $8.4 million, significantly less than the net loss of $462.41 million from the first quarter of fiscal 2015. Reductions in cost of goods sold, selling, general and administrative (SG&A) expenses and impairment losses helped trim net loss.



Total revenues fell to $567.5 million from $581.8 million. Same-store sales dropped 7%.



J. Crew’s gross margin also contracted, shrinking to 36.1% in the period from 37.2% last year.



“Overall, we have been aggressive in managing all aspects of our business in a challenging retail environment while continuing to focus on delivering the very best product and brand experience for our customers across all channels,” said Millard Drexler, chairman and CEO of J.Crew. “We look forward to the contributions from our assortment and merchandising strategies within our J.Crew brand, the continued growth of Madewell and Mercantile and other key operational initiatives including our SG&A, sourcing and supply chain optimization programs."