Comparable company sales increased 3% following an increase of 8% in the third quarter last year.
J.Crew sales decreased 4% to $415.8 million.
J.Crew comparable sales were flat following an increase of 4% in the third quarter last year.
Madewell sales increased 13% to $151.6 million.
Madewell comparable sales increased 10% following an increase of 22% in the third quarter last year.
Gross margin increased to 40.7% from 38.3% in the third quarter last year.
The increase in gross margin was driven by: (i) a 210 basis point margin expansion and (ii) a 30 basis point decrease in buying and occupancy costs as a percentage of revenues.
The margin expansion was driven by an increase in the J.Crew brand, partially offset by a decrease in the Madewell brand.
Selling, general and administrative expenses were $235.1 million, or 37.6% of revenues, compared to $202.8 million, or 32.6% of revenues, in the third quarter last year.
This year includes transaction costs of $36.0 million related to our exploration of strategic alternatives to maximize the value of the Company.
Last year includes a $6.9 million benefit related to the lease termination payment in connection with our corporate headquarters relocation.
Excluding these items, selling, general and administrative expenses were $198.5 million, or 31.7% of revenues, compared to $210.1 million, or 33.8% of revenues, in the third quarter last year.
Operating income was $11.5 million compared to $32.7 million in the third quarter last year.
Operating income this year was impacted by transaction costs and non-cash impairment charges.
The third quarter last year reflects the impact of the benefit related to the lease termination payment.
Net loss was $19.9 million compared to $5.7 million in the third quarter last year.
Net loss this year was impacted by transaction costs and non-cash impairment charges.
The third quarter last year reflects the impact of the benefit related to the lease termination payment.
Adjusted EBITDA increased $25.2 million, or 47%, to $78.8 million from $53.6 million in the third quarter last year. ■