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J.Crew has yet to figure out how to win its customers back. In its second quarter earnings report released today, the brand reported a sales decrease of 10% to $506 million compared to $561 million in sales in the same time period in 2014. Simply put, customers still aren't buying into J.Crew. "We're doing the best we can to get the business moving forward," J.Crew CEO Mickey Drexler said on a conference call with investors. "The only one who matters here in terms of judgment is the customer."
Madewell, on the other hand, continues to be the one bright spot for the company. Sales are up 22% compared to last year, bringing in $67.9 million, but the brand still only accounts for a small percentage of overall sales. "Entering fall, we feel good about the assortments in stores and online, which reflect more emphasis on the key product categories that our customers love J.Crew for," Drexler said in the release. "At the same time, our team has taken a hard look at the business and made changes to drive greater efficiency and profitability. We're focused on our performance in the second half of the year and positioning the business for sustained growth."