(Bloomberg) -- J. Crew Group Inc., the preppy apparel company, reported sales growth for its Madewell denim brand in the second quarter, while its namesake line posted a decline.
- Same-store sales, a key gauge of retail success, rose 10% at Madewell during the period. That matches the 10% growth in the first quarter, which was the slowest pace in two years.
- In April, J. Crew said that a Madewell IPO could happen as soon as the second half of this year. The company made no mention of a possible spinoff in Friday’s statement and investors will have to wait for a conference call this afternoon for any possible developments.
- A successful spinoff could raise needed funds for the parent company. Cash on hand, which has been shrinking in recent quarters, fell to $27.2 million last quarter, from $34.7 million a year earlier, according to a filing.
- In the quarter, the company reviewed its businesses and put in place a cost-cutting program, which it estimates will generate savings of about $50 million over the next three years, including $10 million in savings this year.
- While Madewell has struck a chord with millennial shoppers, the company’s namesake J. Crew brand has been struggling, and Friday’s results show that’s still the case. Same-store sales for the brand fell 4% last quarter.
- For more on the results, click here.
- For the company statement, click here.
--With assistance from Katherine Doherty.
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