Stamford, CT–Like so many of its competitors, apparel cataloger/retailer J. Crew experienced soft sales and earnings for the quarter ended Aug. 4. Revenue declined 1%, to $167.9 million from $170.2 million the previous year. Catalog and Internet sales tumbled 11%, to $45.2 million from $50.7 million. Retail sales rose 5%, to $91.2 million, but comparable-store sales declined 12%. As for earnings, J. Crew’s net loss ballooned 41%, to $8.6 million from $5.1 million a year ago. And the New York-based company suffered a 63% decrease in its earnings before interest, taxes, depreciation, and amortization (EBITDA), bringing it to $2.4 million from $6.5 million last year.
Kids Stuff (OTC Bulletin Board: KDS) suffered a more dramatic sales decline. The North Canton, OH-based marketer, which mails the Perfectly Safe, Jeannie’s Kids Club, and The Natural Baby catalogs, saw second-quarter sales tumble 76%, to $960,274 from $4.0 million last year, following an 85% cut in circulation. During the quarter, Kids Stuff mailed 289,574 catalogs, compared to 2.2 million catalogs for the comparable quarter of 2000. At the same time, its net loss more than doubled, to $955,628 from $477,527.
The cataloger also announced that it has received a $3.0 million equity line of credit from New York-based Cornell Capital Partners. Funding will be provided over 24 months in varying amounts, but Kids Stuff needs to meet a number of conditions, including the registration of its common stock for resale.