(Bloomberg) -- J. Crew Group Inc.’s Madewell brand is still driving growth at the struggling retailer, giving its push for a spinoff some fresh air.
Madewell sales rose 13% to almost $152 million in the third quarter, the company reported in a filing, while sales at the parent company declined. J. Crew also reported improving profitability as well as further details on the planned initial public offering.
J. Crew is relying on the Madewell deal to raise capital amid a heavy debt load. While overall revenue declined, things appear to be stabilizing at the namesake J. Crew brand. Its same-store sales, a key measure for retailers, were flat in the latest quarter after two straight periods of declines.
Madewell comparable sales rose 10% in the period, the same pace of growth as the past two quarters.
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