J. Crew Huge Losses In The First Quarter Performance Crisis

The "bad" 2014 fiscal year has just passed, and it's not yet time to catch a breath. "Millard Mickey" Drexler, which is known as the "godfather of retail", has ushered in a much worse 2015 fiscal year. In the first quarter, the J. Crew Group Inc. group again suffered a 341 million dollar high reputation impairment, while J. Crew Crew also had 190 million dollars in non cash writedowns. In the three quarter of last year, after a huge loss of 608 million US dollars, the Group recorded a huge loss of 462 million 400 thousand dollars in the first quarter of 2015 fiscal year, and the huge loss of Q3 in 2014 fiscal year was also due to the group's write down of 684 million dollars in the quarter.

The poor performance in the first quarter still depends on the weakness of J. Crew women's clothing, especially the brand's sales 25%-30%'s jacket and knitted categories, and Millard Drexler says the group is in the High-end series Excessive attention on J. Crew Collection may also be a mistake in the overall operation, because the actual share of the series is very small, less than 5%.

As of the first quarter of May 2, 2015, J. Crew Group Inc. recorded a revenue of 581 million 800 thousand US dollars, down 1.7% from 592 million US dollars in the same period last year, of which J. Crew brand income was 508 million 700 thousand US dollars, down 5.2% from 536 million 700 thousand US dollars a year earlier; Madewell brand sales increased 32.6% to 61 million 851 thousand US dollars, compared with 46 million 662 thousand US dollars in the same period last year. In the first quarter, the group's same store sales plunged 8%, of which J. Crew brand SSS declined 10%, the Madewell brand SSS had an increase of 13%.

The gross profit margin of J. Crew Group Inc. Group continued to hurt in the first quarter to 37.2%, down 140 basis points, and sales and management fees rose 220 basis points to 35%. In the first quarter, the group's stock grew by 3.6% to $410 million 100 thousand, compared with $395 million 700 thousand in the same period last year.

For the group's continuous impairment and the resulting huge losses. Millard Drexler The women's clothing is not so bad as it is supposed to be, and firmly believes that it will return to the right track after adjustment. In addition, he points out that the J. Crew men's wear and Crewcuts children's clothing series will grow, and the Madewell brand with continuous double-digit growth is also the focus of group development. The new year is expected to add 20 stores.

lead Gap Inc. (GPS) gupu group encountered a career bottleneck after its glory. After being joined in the J. Crew Group Inc., Millard Drexler continued to copy the early successful track of Gap Inc. cover group. However, in 2014, the global retail environment was weak, and the US economy was repeated. The same problem was encountered by the J. and Gap companies. The continued growth of the embarrassing stage that the new brand could not inherit. It is still difficult to determine where the market will go, but the voice of the market on the sale and sale of the GPS is one after another. However, the company and its group shareholders, the Dezhou Pacific and the company, have denied the rumors.