J.Jill’s Q2 sales drop marginally, cuts outlook

For the second quarter, J.Jill’s net sales decreased 0.9 percent to 155.2 million dollars, while comparable sales increased by 1.7 percent for the quarter under review.

For fiscal 2024, the company is lowering its guidance and now expects net sales to be about flat to up 1 percent and for adjusted EBITDA to decline in the range of 4 percent to 9 percent compared to fiscal 2023.

Commenting on the trading performance, Claire Spofford, president and CEO of J.Jill stated: “We delivered solid second quarter results driven by a strong start to the quarter and ongoing disciplined execution of our operating model amidst a dynamic consumer environment.”

Highlights of J.Jill’s Q2 results

The company’s direct to consumer net sales, which represented 47.1 percent of net sales, were up 3.6 percent.

Gross profit declined to 109.4 million dollars and gross margin to 70.5 percent, operating income was 23 million dollars with operating income margin of 14.8 percent. Net Income decreased to 8.2 million dollars or 54 cents per diluted share.

Adjusted EBITDA for the quarter was 30.2 million dollars and adjusted EBITDA margin was 19.4 percent.

For the third quarter of fiscal 2024, the company expects net sales to be down 1 percent to up 2 percent and adjusted EBITDA to be in the range of 23 million to 27 million dollars.

The company opened one new store and ended the second quarter with 244 stores.

Review of J.Jill’s H1 performance

Net sales for the twenty-six weeks increased 3.2 percent to 316.8 million dollars and comparable sales increased by 2.4 percent.

Direct to consumer net sales, which represented 47 percent of net sales, were up 7.5 percent.

Gross profit increased to 227.1 million dollars and gross margin was 71.7 percent. Operating income was 51.4 million dollars, while operating income margin was 16.2 percent.

First half net Income rose to 24.9 million dollars and net income per diluted share to 1.69 dollars. Adjusted EBITDA was 65.8 million dollars and adjusted EBITDA margin was 20.8 percent.

On August 28, 2024, the company’s board of directors declared a quarterly cash dividend of 7 cents per share of the company’s common stock.