Us Fast Fashion J.Crew Sales Fell 6% In The First Quarter

J. Crew is focusing on its Madewell and Mercantile expansion and cost control to help it get through the low tide of retail business, but the J. Crew brand of the company's core business is still in the repair mode.

On Wednesday, the fast fashion retailer reported a drop in its first quarter profit but narrowed its net loss.

Subsequently, Group executives revealed that a more aggressive expansion plan was launched for the low price Mercantile product line and the value oriented Madewell series.

After a 10% fall in the first quarter of last year,

Turnover continued to fall by 6% to 480 million 700 thousand US dollars, down 8% from the store's turnover.

In Madewell, turnover increased by 17% to $72 million 500 thousand, and the year-on-year turnover of the stores grew by 12% in the first quarter of last year, on the basis of which 6% growth this year.

In the first three months of this year, the net loss of J. Crew group was US $8 million, compared to the first quarter of last year, which was 462 million 400 thousand US dollars, reflecting the control of group cost and gross profit margin of 36.1%, which dropped to 37.2% compared with the first quarter of last year.

Total revenue fell 3%, from $567 million 500 thousand a year ago to $581 million 800 thousand.

However, J. Crew group is not the only company with poor financial data.

Over the past year, including fast fashion group GAP and department stores have been affected by the weakening of macroeconomic power and the dynamic change of consumer shopping patterns. People spend more and more on furniture, automobiles, catering, tourism and other experiences, and are gradually away from clothing purchase.

In addition, international tourists, especially tourists from Russia, Brazil and China, spend less and less on American stores, because the dollar is strong and the products are expensive.

For the J. Crew brand, to a certain extent, the problem of products has exacerbated the grim situation, although executives told the American women's Wear Daily that they are trying to correct these problems, and have selected several classic popular product categories.

At present, there are 287 J. Crew retail outlets and 164 J. Crew outlets outlets in the United States.

This year, J. Crew brand will add 2 stores, but it will close 4, one of which will be pformed into J. Crew Mercantile store.

The J. Crew Factory department will open three stores and pform the existing 9 into Mercantile stores.

On the other hand, the Madewell department will continue to expand, and plans to add 10 new stores this year, closing 1 stores.

Madewell has 106 stores.

The most valuable Mercantile department now has 22 stores. This year, the total number of stores is 30. A year ago, the company launched a low-cost product line to win more valuable consumers, helping to reverse the weak performance.

The company's chairman and CEO Millard Drexler said: "in this challenging retail environment, the company has been actively managing all aspects of the business, and continues to focus on providing the best products, giving customers the best brand experience of the whole channel.

Looking forward to the J. Crew brand's business strategy of various categories, Madewell and Mercantile can continue to improve, and other key business plans, including retail, general and administrative expenses, procurement and supply chain optimization procedures can be carried out smoothly.

Group president, chief operating officer and chief financial officer, Michael J. Nicholson, the fashion retail environment is still a big challenge in the first quarter, and Madewell will continue to consolidate its performance capability.

The group is still committed to stimulating growth through additional new stores and strengthening e-commerce channels.

In the second half of last year, the group has been trying to

In the pformation, the Group executives suggested that the high fashion business would be abandoned. The brand will return to the original intention, and launched the "J.Crew Mercantile" called the "Jenna Mercantile". Citigroup analyst Jenna said that the focus of the brand needs to turn to the needs of the store itself. In the past few years, J.Crew has been out of touch with many consumers because of its own style.