J.Crew Changed The Chief Designer Of Women'S Clothing And Laid Off Workers.

In view of the weak sales of the flagship brand J.Crew, J.Crew Group has finally adopted the most effective measures so far to replace the J.Crew designer's chief designer.

After more than a year of disappointing performance, the group will also cut 175 headquarters positions and streamline operations to rectify its continued downturn.

J.Crew Group. announced on Wednesday that it had fired TomMora, the chief designer of J.Crew brand women's clothing, and appointed the chief designer of its Madewell brand in the past two years to lead the brand's rapid growth of Somsack Sikhounmuong.

Somsack Sikhounmuong has been serving J.Crew GroupInc. for 14 years, and has been engaged in the design of J.Crew brand before 2012. After taking up the new post, he will continue to report directly to the group president and Executive Creative Director JennaLyons.

The vacancy left by Somsack Sikhounmuong in Madewell will be filled by JoyceLee. In the past 7 years, as a member of the brand design team, she has been appointed the chief designer of Madewell dress.

Previously she served in Michael Kors and Marc Jacobs.

She will also report to Jenna Lyons.

As for the 175 posts being reduced, it accounts for about 12%-13% of the staff of J.Crew Group headquarters.

When asked if there would be any further layoffs, the group spokesman said, "not now."

Last week, J.Crew Group Inc. released another startling Quarterly Bulletin.

In the first quarter of fiscal 2015, the group had another $341 million worth of goodwill impairment, while the J.Crew brand also had $190 million in non cash writedowns, making a huge loss of $462 million 400 thousand in the first quarter.

In the three quarter of fiscal year 2014, the group had recorded a huge loss of $608 million due to the impairment of goodwill of $684 million.

Over the past 5 quarters, J.Crew Group Inc. has suffered losses in four seasons, with a total loss of $1 billion 130 million 700 thousand.

The bad performance was due to the deterioration of J.Crew brand women's clothing.

The J.Crew dress, which is becoming more and more fashionable through the hands of JennaLyons, has made it difficult for many loyal customers to adapt to it.

They do not like the wide profile and strange size of the new J.Crew, and complain that the price reduction is fast and the store price is not as good as the official website.

In fact, two years ago, consumers and market leaders began to criticize J.Crew for being concerned only with fashion, and away from the classic "preppy" style, which is famous for its brand name and leisure.

In mid March this year, J.Crew Group Millard chairman and CEO Millard "Mickey" Drexler in the fourth quarter of fiscal year 2014 and annual earnings analysts conference call, also frankly J.Crew launched too many unpleasant style and profile, "I also think J.Crew women's dress is not so much like J.Crew dress."

Although he said he had called the design and sales team to make improvements, the results from the first quarter could still be seen. The group predicted that the "Curse" of women's clothing would last until the end of the fiscal year.

In the first quarter, J.Crew brand revenue decreased by 5.2% to $508 million 700 thousand compared to the same period, which reduced the overall revenue of the group by 1.7% to 581 million 800 thousand dollars.

Sales continued to grow strongly, increasing by 32.6% to $61 million 851 thousand annually.

Overall sales in the same store dropped 8%, J.Crew brand declined 10%, and Madewell brand increased by 13%.

In 2, 3 and April this year, it accounted for 25%-30% share of J.Crew brand.

And the knitting series is seriously unsalable, MickeyDrexler said that the sweater design will restore "classic" and not do too many tricks.

In addition, MillardDrexler said that the excessive attention of the group on high-end J.CrewCollection could also be a mistake in the overall operation, because the actual share of the series is very small, less than 5%.

Mickey Drexler pointed out in yesterday's announcement that as Somsack Sikhounmuong fulfil its new position, the group will continue to focus on improving the supply of J.Crew women's products from the aspects of fitness, design, aesthetics and collocation.

Last week's quarterly analysts' conference call has already identified some of the directions, including a better fitting and better style of trousers. The upper garment will be more self-contained and less generous in profile design. In addition, more J.Crew classic styles will return.

While rectifying J.Crew brand women's clothing business, MickeyDrexler will develop a series of J.Crew brand men's wear and Crewcuts children's clothing that keep growing. The Madewell brand with continuous double-digit growth is also the focus of group development. It is expected to add 20 stores in the financial year.

But in the direction of the current trend

Missing, but still not trying to catch up, makes analysts somewhat confused about J.Crew GroupInc..

J.Crew Group Inc. is catching up with higher and higher pricing and positioning. However, the performance of the high-end J.Crew Collection has been able to conclude that the failure of J.CrewCollection's light luxury market has many competitors, and the concept of light luxury has been bankrupt. Instead, the prices of the H&M and Zara are fast and fast, and the growth trend of fashion brands has been increasing for nearly a year.

In addition, like the former GapInc. NYSE:GPS of MickeyDrexler, the old GapInc. Navy's cheap brand OldNavy, and the discount retailer TJXCompaniesInc. (NYSE:TJX) are the fastest growing areas in the US apparel retail industry. This also promotes Macy'sInc. (NYSE:M) Messi department store, NordstromInc. (NYSE:JWN) Nodes Tron and Sax Sax and other high-end department store retailers to greatly accelerate the layout of their respective discount concept stores.

In this regard, MickeyDrexler is working hard. J.Crew brand plans to open 21 discount factory stores J.CrewFactory this year.

Last year, the group has also registered the trademark "J.CrewMercantile", which covers clothing and accessories sold online and in real retail stores. The industry estimates that MickeyDrexler will introduce new low-cost products.

Leading GapInc. (NYSE:GPS) gupu group to pursue a career bottleneck after being brilliant. In 2002, MillardDrexler, who was fired after being joined in J.CrewGroupInc., continued to replicate the early success track of GapInc. Cape group. However, in 2014, the overall retail environment of the whole world was weak, and the US economy was repeated. J.CrewGroupInc. encountered GapInc. GapInc.'s problems, and continued to grow embarrassed and blocked by new brands.