• J.Crew is being superseded by its sister brand.
  • In its fourth-quarter results, reported Tuesday, J.Crew said that same-store sales at its store dropped 7%, while sales at its sister brand Madewell soared 17%.
  • J.Crew wants to cash in on its success and has launched Madewell shop-in-shops in six locations.

J.Crew is being superseded by its sister brand.

In its most recent results, reported after markets closed on Tuesday, J.Crew announced a 7% slump in same-store sales during the fourth quarter and confirmed it would be closing up to 20 more stores in 2018. Meanwhile, sales at its trendy sister store, Madewell, surged to record heights with a 17% increase.

This massive discrepancy in same-store sales growth isn’t an anomaly. It’s a trend – same-store sales have been down at J.Crew for the past three years, dropping by 8% in 2016 following a 10% decrease the year before. At Madewell, same-store sales grew by 5% in 2016 and increased by 10%, 11%, and 13% in the first…