J.Crew Group is looking to its Madewell division to make up for continuing slumping sales as its namesake division.
J.Crew reported net income of $36.6 million for the fourth quarter, ended Feb. 3, compared to $1.1 million in the year-ago period. The fourth quarter this year includes a benefit for income taxes of $64.8 million, the impact of non-cash impairment charges.
Total revenues increased 2% to $710.6 million, which includes $28.6 million generated in the 14th week. Same-store sales fell 3%.
J.Crew has been working to restore its core brand to mixed results. Meanwhile, sales at its less pricey, millennial-targeted Madewell have been on the rise.
“We will scale Madewell more rapidly, building upon its proven and consistent record of growth, through strategic investments with highly profitable returns,” stated CEO Jim Brett, who took the reins of J.Crew last year.
For the full year, total revenues decreased 2% to $2,370 billion, which includes $28.6 million generated in the 53rd week. Same-store sales decreased 6%. J.Crew sales comparable sales decreased 10%. Madewell comparable sales increased 13%.
As of March 27, 2018, the company operates 231 J.Crew retail stores, 121 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com, and 175 factory stores (including 42 J.Crew Mercantile stores).