Photo: Courtesy of J.Crew.J.Crew Group, Inc. shared its first-quarter report card on Wednesday, and the results might surprise Jenna Lyons loyalists. The company disclosed a 2% dip in sales for the three months ending on May 3, 2014, compared to a 5% bump during the same period last year. The net loss was $30.1 million. Women's Wear Daily reports J.Crew attributed the drop to refinancing costs. Per a press release, the refinancing, which occurred in March, is expected to yield "an annual savings of $16 million in interest expense." Sounds like a good deal.
The other numbers were positive (math humor!). Store sales went up 2% to $386.4 million, direct sales grew 12% to $197 million, and revenues increased 5% to $592 million. So, what can be made of the overall decrease in sales? "It could be that the company is investing heavily in operations and international expansion," offers Fashionista. Or, planning a huge party to celebrate Mercantile's arrival.