Not Good! Madewell Is Slowing Down Too.

The shift in the US apparel retailing market is not only reflected in the quarterly performance of listed companies, but also more evident.

Prior to VF Corp. (NYSE:VFC) Vans group, Abercrombie & Fitch Co. (NYSE:ANF) Hollister, Urban Outfitters Outfitters, the growth engine of the company has also slowed down sharply.

In the first quarter of fiscal year ending May 4th, J.Crew Group Inc. as a whole was 1% higher than that of revenue in the same period last year. The difference is that the J.Crew brand in this fiscal year reversed 6% decline in the same period last year, rising by 1%, while Madewell rose to 10% from 2019 in the same period last year, a two-and-a-half year low.

The acting CEO Michael Nicholson said at the analyst conference call that Madewell IPO's plan remained unchanged, and stressed that the paction helped the group repay its debts due in 2021, thereby improving financial flexibility.

As of May 4th, the total debt of J.Crew Group Inc. was US $1 billion 704 million 200 thousand, which was basically unchanged from US $1 billion 711 million 400 thousand in the same period last year.

Gross profit margin fell 130 basis points to 37% in the first quarter, while the SG&A expenditure dropped by 440 basis points to 32.8% as a result of a significant loss of operating profit and a profit of 22 million 100 thousand US dollars. A 900 thousand US dollar loss was recorded in the same period last year.

The net loss also narrowed to $16 million 200 thousand from $33 million 900 thousand in the same period last year.

The total income was 578 million 500 thousand US dollars, up 7% from 540 million 500 thousand US dollars in the same period last year. J.Crew brand income decreased by 4% to 376 million 100 thousand US dollars per year, while Madewell increased 14.7% to 132 million 900 thousand US dollars, accounting for a further increase from 23% in the same period last year to 23%.

In the past three months, the group has closed seven J.Crew brand retail outlets and a factory store, and has added a Madewell store to its total. As of May 29th, the total number of J.Crew retail outlets, Madewell stores and factory shops was 195, 132 and 173 respectively.

Management revealed that the financial network will continue to optimize the retail network in the fiscal year, with a net sales target of 20 stores throughout the year. The group has reduced 34 stores in the last fiscal year.

Although J.Crew Group Inc. began replacing the former CEO James Brett in April with the acting chief executive, the team of four leaders after last November's departure, the group still needs to identify fixed CEO.