J Crew has reported declining sales for the fourth quarter fiscal 2016. Revenue declined by 2% while sales decline by 5%. The company also estimates either a small decrease or small increase in revenue for fiscal 2017.
According to an article on Fashionista, J Crew has reported decking sales for Q4. Revenue declined by 2% to $695 million while sales declined by 5% to $572.6 million. That’s compared to a 4% decline in sales last year. For the year, revenue declined 3% to $2.43 billion. Sales declined by 7% compared to an 8% decline last year.
J Crew CEO Mickey Dexler released a statement saying,
“While the overall retail environment remains challenging, we continue our disciplined management of expenses and inventory and remain focused on delivering the very best, iconic J.Crew and Madewell products our customers love across all channels. As a team, we are taking important steps to drive improved operational excellence across the company.”
President, COO, and CFO Michael J, Nicholson also explained how J Crew plans to increase profits this year, including improving mobile shopping, launching in store pickup, increasing customer loyalty, and more. Nicholson did, however, say that the brand plans to get products to market more quickly and lower production costs. That wouldn’t be great for customers, though, who have been complaining about the brand’s quality, according to Fashionista.
Madewell, another brand owned by J Crew, had sales increase by 11% to $102.9 million, though, it declined from a 12% increase last year. Regardless, the brand is doing a lot better than J Crew. The company announced during the earnings call that is would open 10 new Madewell stores in fiscal 2017 while opening just 2 new J Crew stores and closing up to 20.
This, after J Crew’s efforts to increase sales and lower debt, shows that the brand is officially out. No one likes their clothing anymore and no one is shopping in their stores. The company’s sales and profits have also been declining for years.
J Crew is also doing what Aeropostale did before filing for chapter 11 bankruptcy, offering discounts on their items quite often. These aren’t small 10% discounts either. The brand is currently offering 30% off your entire purchase and an extra 50% off final sale items. I wouldn’t be surprised if the company announced it was filing for bankruptcy or that Jenna Lyons, creative director of the brand, was resigning.
So, what do you think? Do you like J Crew? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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