J.Jill said despite lower sales in on the back of customer concerns over the macro environment, it is satisfied with how Q2 evolved and its ending inventory position.
J.Jill Q2 in brief
- Total net sales for the 13 weeks ended 29 July 2023 were down 2.9% to $155.7m compared to $160.3m for the 13 weeks ended 30 July 2022.
- Total company comparable sales, which includes comparable store and direct-to-consumer sales, decreased by 1.3%
- Gross profit was $111.4m compared to $112.5m in the second quarter of fiscal 2022. Gross margin was 71.6% compared to 70.1% in the second quarter of fiscal 2022. The year-over-year gross margin increase benefited from lower freight costs.
- Net income was $15.2m compared to $17.8m in the second quarter of fiscal 2022.
- Adjusted EBITDA for the second quarter of fiscal 2023 was $34.5m compared to $35.6m in the second quarter of fiscal 2022. Adjusted EBITDA margin was 22.2% for the second quarter of fiscal 2023 and fiscal 2022.
- Inventory at the end of the second quarter of fiscal 2023, decreased 16.0% to $45.7m compared to $54.4m at the end of the second quarter of fiscal 2022.
Claire Spofford, president and CEO of J.Jill, Inc. stated: “The second quarter is an important period for J.Jill as we focus on delivering the novelty and styles our customer seeks for her late spring and summer wardrobes. 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. In addition, we continued to execute our disciplined operating model and are pleased with our ending inventory position. 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.”
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Outlook
For the third quarter of fiscal 2023, the company expects revenues to be down in the low single digits compared to the third quarter of fiscal 2022, and for adjusted EBITDA to be in the range of $23m and $25m.
For fiscal 2023, the company now expects annual adjusted EBITDA dollars to be down in the low-single digits compared to fiscal 2022, including approximately $2m benefit from the 53rd week. The company continues to expect total capital expenditures of about $18m and a flat store count to end fiscal 2023.
