US women’s retailer J.Jill Inc. issued its financial results for the fourth quarter and fiscal year ending February 3, 2024, during which time it set about strengthening its financial foundation by executing a “disciplined operating model”.
For the fourth quarter, total net sales rose 1.2 percent to 149.4 million dollars compared to last year’s 147.7 million dollars, while comparable sales fell 3.6 percent. This was largely driven by direct to consumer net sales, which represented 51.2 percent of the company’s total net sales and were up 4 percent.
Gross profit, meanwhile, came to 100.6 million dollars, compared to the prior 95.1 million dollars, with a gross margin for this quarter sitting at 67.3 percent. Income from operations was also on the up, rising from 7.8 million dollars to 10.5 million dollars, with an operating income margin at 7 percent.
Net income saw a significant increase from one million dollars in fiscal 2022 to 4.8 million dollars, at a per diluted share of 33 cent. Adjusted EBITDA for the period was 17.6 million dollars compared to last year’s 15 million dollars, sitting at a margin of 11.8 percent.
Things were slightly less positive on a yearly note, with net sales dropping 1.7 percent to 604.7 million dollars compared to the prior year’s 615.3 million dollars. Comparable sales decreased by 1.4 percent, while direct to consumer net sales dropped 2.3 percent, representing 46.5 percent of total net sales. Gross profit for the year came to 427.4 million dollars, with a margin at 70.7 percent.
Income from operations rose from 78.7 million dollars to 86.1 million dollars, while net income decreased from 42.2 million dollars to 36.2 million dollars. Net income per diluted share was 2.51 dollars, down from the prior 2.95 dollars. Adjusted EBITDA for the period came to 112.2 million dollars, a slight increase on last year’s 109.4 million dollars.
Speaking on the results, president and CEO of J.Jill, Inc. Claire Spofford, said the results were a reflection of the company’s “disciplined operating model which has continued to support the healthy margin profile and strong cash generation of the business”.
Looking ahead, Spofford added that the company would “continue to take a cautious outlook with respect to the macro environment”, and as such is anticipating net sales for the fiscal year 2024 to be flat to up in the low-single digits. Adjusted EBITDA for the period is expected to be down in the mid-single digits.
