admin Second quarter net sales at J.Jill, Inc. were down 2.9 percent to 155.7 million dollars, while comparable sales, which includes comparable store and direct to consumer sales, decreased by 1.3 percent.
Total net sales for the twenty-six weeks were down 3.9 percent to 305.1 million dollars, while comparable sales, which includes comparable store and direct to consumer sales, decreased by 2 percent.
Commenting on the results, Claire Spofford, president and CEO of J.Jill, Inc. stated: “Despite a slower start to the period given customer concerns with the evolving macro environment, we were pleased with how the quarter evolved with trends improving during the period.”
Review of J.Jill’s Q2 and H1 performance
The company’s direct to consumer net sales for the quarter, which represented 44.7 percent of sales, were down 5.1 percent.
Direct to consumer net sales for the first six month period, which represented 44.8 percent of sales, were down 6.4 percent.
Gross profit declined to 111.4 million dollars, while gross margin rose to 71.6 percent in the second quarter. Net income dropped to 15.2 million dollars and net income per diluted share decreased to 1.06 dollars. Adjusted net income per diluted share was 1.10 dollars.
Gross profit was 218.9 million dollars in the twenty-six weeks period and gross margin was 71.8 percent. Net income was 19.8 million dollars, while net income per diluted share was 1.38 dollars. Adjusted net income per diluted share was 2.07 dollars.
Adjusted EBITDA for the second quarter was 34.5 million dollars and adjusted EBITDA margin was 22.2 percent. Adjusted EBITDA for the first half period was 66.4 million dollars and Adjusted EBITDA margin was 21.8 percent.
The company opened two new stores in the twenty-six weeks and ended the quarter with 245 stores.
J.Jill expects Q3 revenues to decline low single digits
For the third quarter, the company expects revenues to be down in the low single digits and for adjusted EBITDA to be in the range of 23 million dollars and 25 million dollars.
For fiscal 2023, the company now expects adjusted EBITDA dollars to be down in the low-single digits compared to fiscal 2022, including approximately $2 million benefit from the 53rd week.
“As we move into the second half of the fiscal year, we remain focused on delivering on our objectives and further strengthening our foundation to deliver long-term success,” Spofford added.
