Slump continues at J. Crew

J. Crew Group narrowed its loss in the third quarter even as its two-year sales slump continued amid a “difficult traffic environment.”



The retailer posted a net loss of $7.9 million in the quarter ended Oct. 29, compared to a loss of $759.7 million in the year-ago period. (J. Crew booked $845.9 million in impairment losses in the year-earlier period.)



Total revenue decreased 4. 2% to $593.2 million. Same-store sales fell almost 8%.



By brand, J.Crew sales decreased 7% to $488.0 million, and same-store sales fell 12%. Madewell sales increased 12% to $88.0 million, and same-store sales rose 4%.



The retailer has been working to revive its namesake brand, challenged by increased competition and a changing fashion landscape. It is focusing on its core categories and recently eliminated it was discontinuing its bridal collection. J. Crew also entered into a deal to sell an assortment of women’s apparel in Nordstrom stores.



In announcing the third quarter results, J. Crew CEO Millard Drexler cited “ongoing traffic challenges and a highly promotional retail environment.”



“While we expect these trends to persist through the fourth quarter, we continue to remain focused on driving sales productivity and carefully managing inventory and expenses,” he said. “In addition, we have several key operational initiatives underway that we believe position us to regain momentum and deliver long term growth."