J Crew Group to close 50 stores this year

23 November 2017 (Last Updated November 22nd, 2017 14:46)

American multi-channel, specialty retailer J Crew Group is planning to achieve a total of 50 store closures this year in the wake of declining revenues.

American multi-channel, speciality retailer J Crew Group is planning to achieve a total of 50 store closures this year in the wake of declining revenues.

In the third quarter of this year, the group’s total revenues fell by 5% to $566.7m, while its comparable company sales decreased 9%.

The sales of J Crew reduced 12% to $430.4m, while the division’s comparable sales witnessed a drop of 12%.

“We will continue to leverage our strong brand equity and unique capabilities to expand our reach, accelerate growth and maximise profitability.”

However, Madewell’s sales grew 22% to $107.5m and its comparable sales increased 13%.

J Crew Group CEO Jim Brett said: “Our goal is to reinvigorate the J Crew Brand to reflect the America of today and to continue to drive strong momentum in the Madewell Brand.

“During the third quarter of fiscal 2017, we drove gross margin expansion and reduced selling, general and administrative expenses (SG&A) by delivering on our expense initiatives.

“As we solidify longer-term strategies, we will continue to leverage our strong brand equity and unique capabilities to expand our reach, accelerate growth and maximise profitability.”

The company’s net loss increased to $17.6m from $7.9m in the corresponding period last year, while its debt grew from $1.5bn to $1.7bn.

In April, the retailer carried out strategic reorganisation, assigning additional roles to key personnel in an attempt to ensure sustainability.

J Crew Group currently operates 269 J Crew retail stores, 121 Madewell stores, and online sites.