US' J.Jill's net income rises to $10.5 mn in Q2 despite sales dip

Total comparable sales, including store and direct-to-consumer (DTC) channels, declined 1 per cent YoY, while DTC net sales—representing 46.4 per cent of total sales—fell 2.2 per cent.

The gross profit stood at $105.4 million, translating to a 68.4 per cent margin. Selling, general and administrative (SG&A) expenses were $88.6 million, resulting in operating income of $16.8 million and an operating margin of 10.9 per cent, J. Jill said in a press release.

Adjusted EBITDA for the quarter reached $25.6 million, with an adjusted EBITDA margin of 16.6 per cent. The company closed two stores during the quarter, ending with a total of 247 stores.

For the first half (H1) of FY25, net sales declined 2.9 per cent to $307.6 million, while net income stood at $22.2 million, and adjusted EBITDA for this period was $52.9 million, reflecting a 17.2 per cent margin.

Comparable sales decreased 3.5 per cent, reflecting softer performance across both stores and DTC channels. DTC net sales, which accounted for 46.6 per cent of total sales, were down 3.8 per cent YoY.

Gross profit for the half year stood at $215.7 million, with gross margin easing to 70.1. SG&A expenses rose to $179.7 million, up from $175.4 million, representing 58.4 per cent of total sales.

The operating income totalled $35.8 million, down from $51.4 million in H1 FY24, while operating margin stood at 11.7 per cent. Adjusted income from operations reached $41.2 million.

Earnings per diluted share were $1.45, compared with $1.69, while adjusted diluted EPS stood at $1.69 (FY24: $2.27).

“During the second quarter we saw sequential improvement in sales trends each month as traffic improved and customers responded positively to the summer sale period. In line with our operating model disciplines, we took actions in season to enter the second half of the year with inventories more aligned with current trends, and we are pleased with how our teams are continuing to navigate a very dynamic environment,” said Mary Ellen Coyne, CEO and president of J.Jill.

“My initial assessment has reinforced my conviction in J.Jill’s operating model and the valuable customer demographic we serve. As we look ahead, we are focused on realising our brand’s untapped potential to expand our customer file by executing on a strategic framework focused on evolving our product assortment, enhancing our customer journey, and improving the way we work. We're excited to write the next chapter—building a stronger J.Jill, capitalising on the areas that will drive sustainable, profitable growth that we believe will deliver enhanced shareholder value,” added Coyne.

For the third quarter (Q3) of FY25, J.Jill expects net sales to be flat to down low-single digits YoY, comparable sales to decline low- to mid-single digits, and adjusted EBITDA between $18 million and $22 million.

ALCHEMPro News Desk (SG)