US women’s retailer J.Jill Inc. recently released its financial results for the fourth quarter and fiscal year ending February 3, 2024. The company focused on strengthening its financial foundation through a 'disciplined operating model' during this period.
In the fourth quarter, J.Jill reported a 1.2 percent increase in total net sales, reaching $149.4 million compared to $147.7 million in the previous year. However, comparable sales experienced a decline of 3.6 percent. Direct to consumer net sales, which accounted for 51.2 percent of total net sales, saw a positive growth of 4 percent. Gross profit for the quarter stood at $100.6 million, with a gross margin of 67.3 percent. Income from operations also showed improvement, rising to $10.5 million from $7.8 million, resulting in an operating income margin of 7 percent. Net income saw a significant rise from $1 million in fiscal 2022 to $4.8 million, translating to earnings per diluted share of 33 cents. Adjusted EBITDA for the period was $17.6 million, up from $15 million, with a margin of 11.8 percent.
On an annual basis, J.Jill experienced a 1.7 percent decrease in net sales, totaling $604.7 million compared to $615.3 million in the previous year. Comparable sales dropped by 1.4 percent, while direct to consumer net sales declined by 2.3 percent, representing 46.5 percent of total net sales. Gross profit for the year reached $427.4 million, with a margin of 70.7 percent. Income from operations increased from $78.7 million to $86.1 million, while net income decreased from $42.2 million to $36.2 million. Net income per diluted share was $2.51, down from $2.95 in the prior year. Adjusted EBITDA for the period was $112.2 million, a slight increase from $109.4 million.
J.Jill's President and CEO, Claire Spofford, attributed the results to the company's 'disciplined operating model,' which supported a healthy margin profile and strong cash generation. Looking ahead, the company plans to maintain a cautious outlook due to the macro environment and anticipates flat to low-single-digit growth in net sales for fiscal year 2024. Adjusted EBITDA is expected to decrease in the mid-single digits.
