J.Crew Group, Inc. (JCG) swung to a net profit for the quarter ended Jan. 28, 2017. The company has made a net profit of $1.05 million in the quarter, against a net loss of $7.03 million in the last year period. Revenue during the quarter went down marginally by 2.25 percent to $694.99 million from $710.96 million in the previous year period. Gross margin for the quarter expanded 146 basis points over the previous year period to 34.72 percent. Total expenses were 97.84 percent of quarterly revenues, down from 99.11 percent for the same period last year. This has led to an improvement of 127 basis points in operating margin to 2.16 percent.
Operating income for the quarter was $15 million, compared with $6.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $51.50 million compared with $44 million in the prior year period. At the same time, adjusted EBITDA margin improved 122 basis points in the quarter to 7.41 percent from 6.19 percent in the last year period.
Millard Drexler, chairman and chief executive officer, commented, "While the overall retail environment remains challenging, we continue our disciplined management of expenses and inventory and remain focused on delivering the very best, iconic J.Crew and Madewell products our customers love across all channels. As a team, we are taking important steps to drive improved operational excellence across the company."
Operating cash flow improves marginally
J.Crew Group, Inc. has generated cash of $137.80 million from operating activities during the year, up 1.62 percent or $2.20 million, when compared with the last year. The company has spent $80.10 million cash to meet investing activities during the year as against cash outgo of $103.70 million in the last year.
The company has spent $12.90 million cash to carry out financing activities during the year as against cash outgo of $54 million in the last year period.
Cash and cash equivalents stood at $132.23 million as on Jan. 28, 2017, up 50.58 percent or $44.41 million from $87.81 million on Jan. 30, 2016.
Debt remains almost stable
Total debt of J.Crew Group, Inc. remained almost stable for the quarter at $1,510.16 million, when compared with the last year period.
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