On Dec. 3, it was reported by J. Crew Group that the company made a substantial decrease in sales and net profit in the third quarter of 2015. J. Crew continues to make losses in the double digits as the year progresses, this quarter being no exception.
In the third quarter of 2015, J. Crew has experiences a net loss of $759.7 million, compared to $607.8 million in the third quarter of 2014. The total revenue of the retailer has decreased 6 percent, while comparable company sales have decreased 6 percent.
On the other hand, sister company Madewell continues to thrive in a tough market. Both J. Crew and Madewell are owned by the same company, yet are experiencing completely different sales trajectories. Madewell sales increased 14 percent to $78.7 million during the third quarter of 2015. Generally, the company’s sales have increased 1 percent on a comparable basis.
Many believe the lack of sales on J. Crew’s end of the market is due to a lack of direction, stemming from their administrative staff. J. Crew Group announced on Dec. 3 that Michael J. Nicholson will become president, chief operating officer, and chief financial officer. He will report to group chairman and chief executive officer Millard “Mickey” Drexler on Jan. 11 to begin his time as president.