J.Jill swings to Q2 profit

J.Jill was back in the black in the second quarter of the year as its revenue edged up slightly.

In the three months ended July 30, the US womenswear retailer swung to a net income of 17.8 million dollars from a loss of 24.6 million dollars a year earlier.

Adjusted EBITDA was a record 35.6 million dollars, up from 32.7 million dollars.

The company’s net sales in the period edged up slightly by 0.7 percent to 160.3 million dollars, while comparable sales were up 0.8 percent.

President and chief executive Claire Spofford hailed the results against the backdrop of a “volatile consumer environment”.

“Our results reflect the disciplined execution of our operating model focused on driving full price sales, regularly flowing newness, and managing expenses,” she said.

Q3 outlook

Looking ahead, J.Jill expects third-quarter revenue to be flat or down 3 percent year-on-year.

It forecasts adjusted EBITDA to be in the range of 21 million dollars and 23 million dollars.

For the full-year, it expects total capital expenditures of about 15 million dollars and to end the period with a net closure of between 10 to 14 stores, including the opening of up to two new stores late in the fourth quarter.

Spofford continued, “As we look to the remainder of the year, we plan to continue to execute against our initiatives including investing in our plans for long-term profitable growth while remaining prudent with our expectations related to the consumer.

“As part of our growth strategy, we are focused on modernizing the J.Jill brand to increase relevance with both new and loyal customers.”