Financial Report: J. Crew Cuts 1Q Operating Loss

New York-based apparel cataloger/retailer J. Crew slashed its first-quarter operating loss but nonetheless saw its net loss for the quarter widen. For the three months ended May 1, the company‚Äôs operating loss was $2 million, down from $10 million a year ago. The company attributes the reversal to its new merchandise strategy. The net loss for the quarter just ended was $23 million, compared with $20 million last year, due to a newly required inclusion of preferred dividends ($8 million) as interest expense in 2004. Last year, the dividends were recorded as a direct charge to stockholders’ deficit.

Consolidated revenue for the first quarter decreased 10%, to $145 million from $161 million last year. The decline was due to a 34% decrease–$19 million–in net sales of the direct business. The decrease resulted from reductions in catalog pages, circulation, and clearance sales. Retail sales increased to $104 million from $98 million last year.

Partner Content

3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Build the Foundation for Great Customer Experiences - NetSuite
Understand how consistent, timely, relevant and personalized experiences are enabled by having the right technology foundation in place.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.