J. Crew Group Inc. reported a 47% decline in its direct sales, blaming it mostly on planned reduction in catalog page counts and elimination of several books.
The firm posted a net loss of $23.6 million, compared with $0.7 million for the same period last year. Overall revenue fell to $151 million from $189.9 million last year.
As required, the company reclassified redeemable preferred stock as long-term debt.
Direct marketing sales totaled $31.6 million, compared with $60 million for the same quarter in 2002.
Catalog sales dropped from $25 million to $12.6 million, and Internet sales from $35 million to $29 million. The quarter ended Nov. 1.
“From my experience, a turnaround requires tough medicine that is now without painful side effects,” said CEO Millard Drexler in a statement. “These results are a necessary cost of our turnaround.”
Meanwhile, the company reported sales of $479.5 million for the first nine months, a 9% decrease from last year’s total. Direct sales fell by 23% during that period to $124 million. The net loss was $28 million, compared with $19.9 million in 2002.
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