Woes persist at J.Crew; names retail vet as CFO and president

J.Crew Group didn’t get any relief in its third quarter. On the heels of another decrease in sales and a widening loss, the company is bringing in a former Ann Inc. executive to help turn things around.



J.Crew posted a net loss for the third quarter of $759.7 million, compared to a loss of $607.8 million in the year ago period. (The retailer noted that both this year and last year reflect the impact of pre-tax, non-cash impairment charges of $845.9 million and $684.0 million, respectively.)



Total revenues fell 6% to $619.4 million. Total same-store sales fell 11%, dragged down by a 12% decrease at namesake brand. Same-stores sales at the company have fell in six of its last seven quarters.



The company’s Madewell division remains a bright spot, with sales up 14% $78.7 million. Madewell same-store sales rose 1%. The brand will end the year with 100 stores.



J. Crew has been suffering from a combination of factors, including declining mall traffic and fashion, pricing and fitting missteps.



On the company’s quarterly earnings conference call, CEO Millard “Mickey” Drexler said: “Our results are still not where we would like them to be.” But he noted that that the company has “seen an encouraging response to our recent product and merchandising strategies.”



The retailer named Michael J. Nicholson as president, COO and CFO, effective January 11, 2016. He will report to Millard Drexler, chairman and CEO. Joan Durkin, who had served as interim CFO, will return to her role as chief accounting officer.) Nicholson was most recently executive VP, COO, CFO and treasurer of Ann Inc., from December 2012 until August 2015. Previously, from 2007 to 2012, he served as executive VP, CFO and treasurer of the company.



Before joining Ann, Nicholson spent seven years at Limited Brands, holding various executive positions including executive VP, COO and CFO for Victoria's Secret Beauty Company.