US retailer J.Jill posts gross profit of $107.8 million in Q3 FY23

The gross profit of J.Jill, a national lifestyle brand, was $107.8 million in the third quarter (Q3) of fiscal 2023 (FY23) as compared to $105.0 million in the third quarter of fiscal 2022. Gross margin was 71.8 per cent, as compared to 69.9 per cent in the third quarter of fiscal 2022.

Total net sales for the thirteen weeks ended October 28, 2023, were down 0.1 per cent to $150.1 million compared to $150.2 million for the thirteen weeks ended October 29, 2022. Total company comparable sales, which includes comparable store and direct to consumer sales, increased by 1.9 per cent. Direct to consumer net sales, which represented 45.3 per cent of sales, were down 0.5 per cent compared to the third quarter of fiscal 2022, the company said in a media release.

In the third quarter of fiscal 2023, selling, general, and administrative expense was $85.7 million compared to $84.9 million in the third quarter of fiscal 2022. In comparing the third quarter of fiscal 2023 to fiscal 2022, excluding non-recurring and other one-time costs, selling, general, and administrative expense as a percentage of total net sales was 57.5 per cent compared to 56.5 per cent in the third quarter of fiscal 2022.

"Our performance continues to reflect the disciplined execution of our business by the team especially amidst a very dynamic consumer environment. Our results are supported by solid full price selling across our channels and underscore our ability to continue to deliver products and assortments that are versatile, modern and that appeal to our loyal customer. As we look to the remainder of the year, while we have seen our customer become more discerning with her spending, we believe we are well positioned to deliver on our objectives for the year,” Claire Spofford, president and chief executive officer of J.Jill, said.

Income from operations in Q3 FY23 was $22.1 million compared to $18.9 million in the third quarter of fiscal 2022. Adjusted income from operations, which excludes adjustments for costs to exit retail stores as well as impairment charges was $21.5 million compared to $20.2 million in the third quarter of fiscal 2022.

For the fourth quarter of fiscal 2023, the company expects revenues to be approximately flat compared to the fourth quarter of fiscal 2022, and for adjusted EBITDA to be in the range of $11.0 million and $13.0 million.

For fiscal 2023, the company continues to expect adjusted EBITDA dollars to be down in the low-single digits compared to fiscal 2022, including approximately $2.0 million of benefit from the 53^rd week in fiscal 2023. The company also continues to expect total capital expenditures of $18.0 million and a flat store count to end fiscal 2023.