J.Jill’s second-quarter sales drop marginally, Best cuts outlook 2024
J.Jill’s second-quarter sales, dropped by 0.9 percent to $155.2 million while comparable sales for the reported quarter increased by 1.7 percent.
For fiscal 2024, the company is reducing its guidance, now projecting that net sales will be roughly flat and adjusted EBITDA will fall between 4 and 9 percent less than in FY 2023.
In the comments on the trading performance displayed by J. Jill, Claire Spofford, the president and chief executive officer noted that “we were able to post commendable results for the second quarter which were informed by a good opening month and also our abiding adherence to operating model in a situation where consumers are often in the mood to oscillate.”
Highlights of J.Jill’s second-quarter sales
Direct to consumer net sales increased by 3.6% and made 47.1% of the company’s net sales.
The gross profit fell to 109.4 million USD, while the gross margin decreased to 70.5% with a decline in operating income by 23 million and an operating income margin of 14.8%. A net income decline was noted at 8.2 million or 54 cents per diluted share.
Adjusted EBITDA for the quarter was $30.2 million and adjusted EBITDA margin was 19.4 percent.
The company expects net sales for the third quarter of fiscal year 2024 to go down between 1% and 2%. The adjusted EBITDA is estimated at $23-$27 million.
One new store was opened by the company which ended the second quarter having248 stores. Read more about fashion brands!
Review of J. Jill’s H1 performance
For twenty-six weeks, net sales reached 316.8 million dollars which means an increase of 3.2 percent while comparable sales experienced a 2.4 percent rise.
Direct to consumers’ sales at 47 percent represented the totality of net sales grew by 7.5 percent.
Gross revenue increased to USD 227.1 million with gross margin being 71.7 percent. Operating income stood at USD 51.4 million and operating income margin was 16.2 percent.
Net income for first half increased to USD 24.9 million and diluted Earnings per Share (EPS) reached USD 1.69 per share. Adjusted EBITDA amounted to USD 65.8 million and its margin was adjusted for EBITDA by USD 20.8%.
The board of directors of the company on August 28, 2024 in their meeting declared a quarterly cash dividend of seven cents per share on common stock of the company.
