J.Jill: Q3 comparable sales and earnings improve

J.Jill’s third quarter net sales were down 0.1 percent to 150.1 million dollars, while comparable sales increased by 1.9 percent.

For the fourth quarter, the company expects revenues to be approximately flat and adjusted EBITDA to be in the range of 11 million dollars and 13 million dollars.

For fiscal 2023, the company continues to expect Adjusted EBITDA dollars to be down in the low-single digits and a flat store count at the end of fiscal 2023.

Commenting on the trading update, Claire Spofford, president and CEO of J.Jill stated in a statement: "Our results are supported by solid full price selling across our channels and underscores our ability to continue to deliver product and assortments that are versatile, modern and that appeal to our loyal customer.”

Highlights of J.Jill’s Q3 performance

For the third quarter, direct to consumer net sales, which represented 45.3 percent of sales, were down 0.5 percent compared to the same quarter of 2022.

Gross profit rose to 107.8 million dollars and gross margin to 71.8 percent.

Net income for the quarter increased to was 11.6 million dollars, while net income per diluted share to 80 cents and adjusted net income per diluted share reached 78 cents.

Adjusted EBITDA for the third quarter increased to 28.3 million dollars and adjusted EBITDA margin to 18.8 percent.

Review of J.Jill’s nine month results

For the thirty-nine weeks, the company’s net sales were down 2.7 percent to 455.2 million dollars and comparable sales, which includes comparable store and direct to consumer sales, decreased by 0.7 percent. Direct to consumer net sales, which represented 45 percent of sales, were down 4.5 percent for the thirty-nine weeks.

Gross profit was 326.8 million dollars compared to 327 million dollars in the same period last year, while gross margin was 71.8 percent compared to 69.9 percent.

Net income declined to 31.4 million dollars and net income per diluted share to 2.19 dollars. Adjusted net income per diluted share dropped to 2.85 dollars.

Adjusted EBITDA increased marginally to 94.7 million dollars and adjusted EBITDA margin to 20.8 percent.

The company opened two new stores in the thirty-nine weeks and ended the quarter with 245 stores.