Cuts at J. Crew
Although the menswear line has improved dramatically in the last year, J. Crew is struggling in its primary market of women
On 10 June, Fashion retailer J.Crew today slashed its corporate staff and ousted its lead women’s fashion designer amid a sales slump. The company said it is cutting 175 full-time jobs, including some open positions, with most spots located at its New York City headquarters.
J.Crew also announced that it is ousting Tom Mora as head of women’s design. He will be replaced by Somsack Sikhounmuong, who was leading design for the company’s Madewell brand. The company has been grappling with poor results from its women’s fashion and accessories business as shoppers seek out hot alternatives such as Forever 21 and H&M.
Sales at J.Crew stores open at least a year fell 10% in the quarter ending May 2, compared to the same period a year earlier.
“We are making meaningful and strategic changes across our organization to better position us for future growth. While many of these decisions were difficult, they are necessary,” J.Crew Chairman and CEO Millard Drexler said in a statement. “With Somsack in his new role, we will continue to focus on making critical improvements to our J.Crew women’s assortment including fit, design aesthetic and styling. We know what needs to be done and while many of these initiatives take time, we have a committed team in place to make it happen.”
Sikhounmuong “brings to J.Crew a fresh perspective across all categories and has an aesthetic consistent with what J.Crew’s customers know and love,” the company said.
The retailer has said it expects the losing streak in women’s clothing to extend through at least the end of 2015.
The company posted a $462.4 million loss in its most recent quarter, primarily because of a major accounting charge connected to the deterioration in the J.Crew brand’s value.