J.Crew Impairment Of Goodwill Recorded A Huge Loss Of $608 Million In The Three Quarter.

J.Crew Group Inc., a fashion retailer in the US, responded to the trend of consumers moving from physical stores to online shopping. It made a non cash impairment of $684 million on its physical stores and J.Crew brand names, making it net profit in the three quarter of November 1st as a net loss of $607 million 800 thousand, compared with a net profit of 35 million 400 thousand dollars in the same period last year.

In the earnings report, the difference between the fair value and the book value of the physical stores in the one or two quarter of this fiscal year narrowed sharply. In the three quarter, because of the weakness in the sales of women's clothing and accessories, the group's CEO Millard "Mickey" Drexler was "extremely challenging and very difficult", so the profitability of the entity store was further weakened, which is expected to last at least until the first quarter of fiscal year 2015.

Therefore, based on current and expected

The group reduced the value of its physical store to 57% or 536 million dollars, while the value of the J.Crew brand name was also reduced by $145 million.

Stuart Haselden, chief financial officer of J. Crew Group Inc., said the operation reflected the change in people's shopping habits: "shopping mall passenger traffic has declined for two consecutive years, and the e-business in the whole industry has been increasing."

However, the group has no plans to close stores, but next year it will be under its banner.

Madewell adds 20 new stores.

Madewell achieved 32% growth in the three quarter.

The total revenue in the three quarter totaled $655 million 200 thousand, up 6% from the same period last year, while the same store sales decreased by 2% year-on-year, while the same period last year increased by 4%. Direct sales (e-commerce and mail order business) increased 10% to 207 million 800 thousand dollars, an increase that was considerably slower than that of the same period last year.

Gross profit margin fell from 43.9% in the same period last year to 40.2%, or 370 basis points.

The adjusted EBTIDA profit before tax and depreciation amortization fell 26.7% to $80 million 900 thousand compared to the same period last year, compared with $110 million 400 thousand last year.

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Most of Italy's brand Roberta di Camerino is acquired by United Trademarks Group Ltd. (UTG), a private equity fund in China.

According to reports, UTG is a fund founded in the early 80s, and this acquisition of Roberta di Camerino aims to recreate the brand's past brilliance and bring its handicraft value into full play.

According to reports, UTG has 7 offices worldwide with a turnover of US $1 billion 500 million, focusing on the promotion and business development of fashion and luxury brands in China.

After the completion of the acquisition, the current CEO Ercole De Cesare of Roberta di Camerino will work with UTG executives Yuexi Pan and Cedric Cedric.

The Chinese name of UTG is yet to be verified, but according to Linkedin, Cedric Devroye also serves UTG and Glory Rabbit International Investment Co., and the latter is Shanghai jinrabbit Investment Limited.