On June 7, 2024, J.Jill Inc (JILL, Financial) released its 8-K filing announcing financial results for the first quarter of fiscal year 2024. J.Jill Inc is a national lifestyle brand that provides apparel, footwear, and accessories through its e-commerce platform and retail stores.
Performance Overview
J.Jill Inc reported net sales of $161.5 million for Q1 FY24, a 7.5% increase from $150.2 million in Q1 FY23, surpassing the analyst estimate of $160.00 million. The company also reported a net income of $16.7 million, significantly higher than the $4.6 million reported in the same period last year. Earnings per diluted share (EPS) came in at $1.16, exceeding the analyst estimate of $1.07.
Key Financial Metrics
| Metric | Q1 FY24 | Q1 FY23 |
|---|---|---|
| Net Sales | $161.5 million | $150.2 million |
| Gross Profit | $117.7 million | $108.4 million |
| Operating Income | $28.4 million | $25.4 million |
| Net Income | $16.7 million | $4.6 million |
| EPS (Diluted) | $1.16 | $0.32 |
Operational Highlights
J.Jill Inc's gross margin expanded to 72.9% in Q1 FY24 from 72.1% in Q1 FY23, reflecting an 80 basis point improvement. Operating income increased to $28.4 million, with an operating income margin of 17.6%, up from 16.9% in the previous year. The company also reported an adjusted EBITDA of $35.6 million, representing a margin of 22.1%.
"We are very pleased with our first quarter results which exceeded expectations driven by a strong end to the period as we transitioned into the heart of our big season leading up to Mother’s Day," said Claire Spofford, President and CEO of J.Jill Inc.
Balance Sheet and Cash Flow
J.Jill Inc ended Q1 FY24 with a cash balance of $77.1 million, up from $62.2 million at the end of Q4 FY23. Net cash provided by operating activities was $21.5 million, compared to $7.9 million in Q1 FY23. Free cash flow also saw a significant increase, reaching $19.2 million compared to $4.9 million in the same period last year.
Future Outlook
Looking ahead, J.Jill Inc has raised its full-year FY24 guidance. The company now expects net sales to grow between 1% and 3% compared to FY23, with adjusted EBITDA expected to decline by 1% to 3% due to the loss of the 53rd week in FY23 and investments in the Order Management System project.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from J.Jill Inc for further details.
