J. Crew’s Q1 web sales fall faster than total sales
Internet sales at struggling J. Crew Group Inc. tumbled 43% in the first quarter compared to last year’s first quarter, dropping to $21 million from $37 million, the company reported today. Total revenue at J. Crew fell 9.3% in the quarter to $145 million from $161 million a year ago. Internet sales represented 14.5% of J. Crew’s revenue, down from 23% a year ago.
The decrease in total sales came totally from the Internet/catalog division, as sales in retail stores, including outlet stores, grew 6% to $104 million from $98 million, with comparable store sales up 4%. Catalog sales slipped 16.7% to $15 million from $18 million.
The company attributed the decline in sales to a “conservative inventory strategy.”
Net loss for the quarter reached $23 million from $20 million a year ago. The net loss figures include an accounting change of $8 million that was not part of net loss a year ago. Operating loss was $2 million in the quarter vs. $10 million a year ago.
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