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J.Crew sales continue to slump. The brand said on Thursday that losses in this third quarter had jumped to $759.7 million, as compared to only $607.8 million as this same time last year. Sales have also dropped considerably in that time span, as sales at J.Crew flagship stores were down 12%, a massive decline when you consider that at the third quarter last year comparable sales were only down 3%.
Meanwhile, total sales had fallen off 9% to $526.9 million. The one bright spot from J.Crew's financial report is Madewell, which recently made a change at its creative director position. Madewell sales rose 14% to $78.7 million. However, the rise in Madewell's sales are not as impressive as they have been in recent quarters, and its former creative director Somsack Sikhounmuong has shifted over to J.Crew and could potentially bring bolstered sales with him.
J.Crew CEO Mickey Drexler admitted in an earnings conference call, "Our results are still not where we would like them to be." However, he said product changes are already paying dividends and he is optimistic about this holiday season. The company has, according to Drexler, "seen an encouraging response to our recent product and merchandising strategies." He added: "The team is focused on having a successful holiday season."
J.Crew also announced that it's filling its chief operating office and chief financial officer positions after leaving them open all year. Michael J. Nicholson will take over both roles. He comes from Ann Taylor's parent company where he held the same positions.