J. Crew Group Showed A Loss In The First Quarter

J. Crew Group Inc., the high street fashion retailer in the US, recorded a major loss in the first quarter. By the three month of May 2nd, net loss increased from $30 million 100 thousand to $462 million 400 thousand last year, which was mainly affected by the non cash impairment charges of $533 million 400 thousand.

The group's total revenue fell from $592 million to $581 million 800 thousand, down 8% from sales, down 2% from a year ago.

By brand, sales of J. Crew fell 5.2% to 508 million 700 thousand dollars, while Madewell rose 32.6% to 61 million 900 thousand dollars.

As the core brand of the group, its performance was not as good as expected in the current quarter, and it was affected by the weakness of the brand women's wear and accessories, and sales fell again.

The group said the situation is expected to last until at least 2015 fiscal year.

In fact, in May this year, chairman and chief executive officer Millard "Mickey" Drexler said that J. Crew had launched too many unpleasant styles and profiles, and its brand names were also

Nor has it reached its due level.

Although the group has begun to improve the design and sales team, it is not known for the time being.

Will you fall in love with this brand again?

In view of current and expected future operation results, the group considers that the book value of J. Crew reporting unit exceeds its fair value, and the estimated non cash goodwill impairment cost is $341 million.

In addition, J. Crew Group Inc. also made a non cash impairment fee of $190 million, mainly related to the J. Crew trademark regarded as intangible assets.

The Madewell, a young leisure product line, did not record any impairment charges and sustained strong growth momentum, with sales surging 32.6% in the first quarter.

According to the group's last year's earnings report, the brand's annual sales increased by 35.2% last year. The group also indicated that it plans to add about 20 Madewell stores this year to promote its sustained and rapid growth.

In addition, the group plans to launch a low price product line called "J. Crew Mercantile", aiming at carefully calculated consumers as the target consumer group, hoping to create new performance growth.