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J. Crew Q4 revenues increased 2%

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Christian Fernsby ▼ | March 3, 2020
J. Crew Group announced financial results for the three months ended February 1, 2020.
J. Crew
J. Crew   J.Crew sales decreased 2% to $516.8 million
Total revenues increased 2% to $747.2 million. Comparable company sales increased 3% following an increase of 9% in the fourth quarter last year.

Topics: J. Crew

J.Crew sales decreased 2% to $516.8 million. J.Crew comparable sales increased 1% following an increase of 6% in the fourth quarter last year.

Madewell sales increased 13% to $178.1 million. Madewell comparable sales increased 9% following an increase of 22% in the fourth quarter last year.

Gross margin increased to 38.3% from 22.4% in the fourth quarter last year. During the fourth quarter of fiscal 2018, the Company recorded a charge of $39.3 million for expected losses on the disposition of excess merchandise inventories.

Selling, general and administrative expenses were $246.2 million, or 33.0% of revenues, compared to $227.7 million, or 31.0% of revenues, in the fourth quarter last year. This year includes transaction, transformation and severance costs of $18.1 million and a benefit of $1.0 million related to the lease termination payment in connection with our corporate headquarters relocation.

Last year includes severance, transformation and transaction costs of $10.8 million and a benefit of $6.6 million related to the aforementioned lease termination payment. Excluding these items, selling, general and administrative expenses were $229.1 million, or 30.7% of revenues, compared to $223.5 million, or 30.5% of revenues, in the fourth quarter last year.

Operating income was $39.4 million compared with an operating loss of $64.2 million in the fourth quarter last year. The fourth quarter this year reflects the impact of transaction and transformation costs. The fourth quarter last year reflects the impact of excess inventory write downs.

Net income was $1.5 million compared with a net loss of $74.4 million in the fourth quarter last year. The fourth quarter this year reflects the impact of transaction and transformation costs. The fourth quarter last year reflects the impact of excess inventory write downs.

Adjusted EBITDA increased $113.7 million to $81.8 million from an Adjusted EBITDA loss of $31.9 million in the fourth quarter last year.


 

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