Skip to main content

J. Crew Loss Widens

Results are weighed down by charges related to options and debt refinancing.
  • Author:
  • Publish date:

Updated from 4:50 p.m. EDT

J. Crew

(J)

reported a wider second-quarter loss Thursday as its bottom line was weighed down by charges for debt refinancing and stock-options expenses.

The newly public apparel retailer posted a loss of $2.8 million, or 8 cents a share, for the quarter, compared with the loss of $1.6 million, or 7 cents a share, it recorded for the same period last year.

Excluding a $10 million charge related to debt refinancing and a $500,000 charge related to options expensing, J. Crew said it earned $7.2 million, or 20 cents a share, for the quarter. Analysts, on average, had expected earnings of 17 cents a share, according to Thomson First Call.

"We are pleased with our second-quarter results, and look forward to building on the new foundation we have created for J.Crew Group," the company said. "Our team is focused on driving productivity across all areas of the business, and we are confident about our near- and long-term prospects."

J. Crew was taken public in June after its biggest shareholder, private equity firm Texas Pacific Group, had restructured the company and installed famed merchandiser Mickey Drexler as chairman and CEO. Drexler gained notoriety by building

Gap

(GPS)

, the specialty retail empire that runs Gap Stores, Banana Republic and Old Navy, into an American icon.

J. Crew reported sales of $269.2 million for the second quarter, up 17% from last year's $229.4 million. Its store sales increased 21% to $197.4 million, while its direct-to-consumer sales, from its catalog and Internet channels, rose 7% to $62.8 million.

Same-store sales, gauging sales at stores open for at least a year, rose 15%.

Looking ahead, J. Crew forecast long-term, annual same-store sales growth in the mid-single digits and direct-to-consumer sales growth in the high single digits. The company projects 7% to 9% net square footage expansion and EPS growth in excess of 20%.

Shares of J. Crew recently were up 90 cents, or 3.4%, to $27.60 in after-hours trading. The stock added 2.1% in regular trading hours.