J.Jill reports widening Q2 losses despite strong sales

US womenswear retailer J.Jill has reported widening losses in the second quarter of the year despite strong sales growth.

In the thirteen weeks to July 31, total net sales were up 71.9 percent to 159.2 million dollars compared to a year ago when the business was negatively affected by store closures which lasted for approximately half of the quarter.

Direct to consumer net sales in the period were up 11.3 percent and represented 46.4 percent of total net sales, compared to 71.6 percent a year ago.

Losses widen at J.Jill

Despite strong sales, the company’s net loss widened to 24.6 million dollars from 19 million dollars a year earlier.

Meanwhile, its operating income came in at 23.5 million dollars, compared to a loss of 21.8 million dollars a year earlier.

President and CEO Claire Spofford said she was “pleased” with the company’s second-quarter results and “the sequential topline improvement we delivered”.

She said the performance was driven “by strong full-price selling as our customers continue to respond to the newness and novelty we are flowing into the assortment both online and in our stores”.

The company closed four stores in the second quarter, ending the period with 261. It said it plans to close about 20 stores in fiscal 2021.

Spofford continued: “We enter the back-half of the year with further confidence in our ability to execute against our objectives. While we, like others in the industry, expect to experience increased headwinds from supply chain disruption, we continue to position J.Jill for long term sustainable growth.”

Due to ongoing Covid uncertainty, the company did not provide financial guidance.