J.Crew’s sales continue to slide into 2017

The good news for J.Crew is that its lousy 2016 is now behind it. The bad news is that 2017 may be worse.

The preppy clothing chain, which has been on many analysts’ bankruptcy-watch lists, reported on Tuesday that companywide same-store sales — including those at its Madewell and factory store operations — were down 11 percent in the first seven weeks of its fiscal year.

At just the J.Crew nameplate, they dropped 14 percent in the period.

“The bottom seemed to have dropped out of the mother-ship brand J.Crew,” said Craig Johnson, president of Customer Growth Partners, adding “J.Crew is not as compelling a brand if you are part of the declining breed that likes preppy clothes.”

For the fourth quarter and fiscal year ended Jan. 28, total revenues declined 3 percent, to $2.4 billion.

The one bright spot for the company — which is led by former Gap Chief Executive Mickey Drexler — is its Madewell brand, which saw sales grow 14 percent last year, to $341 million.

Madewell’s denim-centric brand resonates with consumers and is being replicated by other retailers, according to Johnson, but it represents just 15 percent of the company’s sales.

J.Crew is owned by private equity investors TPG Capital and Leonard Green & Partners.