On September 4, 2024, J.Jill Inc (JILL, Financial) released its 8-K filing announcing the financial results for the second quarter of fiscal year 2024. J.Jill Inc is a national lifestyle brand that provides apparel, footwear, and accessories, marketed under the J.Jill brand name and sold through its e-commerce platform and retail stores.
Performance Overview
J.Jill Inc reported net sales of $155.2 million for Q2 FY24, a slight decrease of 0.9% compared to $156.6 million in Q2 FY23. Despite the decline, the company saw a 1.7% increase in total company comparable sales. The gross margin for the quarter was 70.5%, down from 71.7% in the same period last year.
Financial Achievements and Challenges
Operating income for Q2 FY24 was $23.0 million, resulting in an operating income margin of 14.8%. This is a decrease from the $28.0 million operating income and 17.9% margin reported in Q2 FY23. The company’s net income for the quarter was $8.2 million, or $0.54 per diluted share, compared to $15.2 million, or $1.06 per diluted share, in the same period last year. Adjusted net income per diluted share was $0.54, down from $1.15 in Q2 FY23.
Key Financial Metrics
| Metric | Q2 FY24 | Q2 FY23 |
|---|---|---|
| Net Sales | $155.2 million | $156.6 million |
| Gross Profit | $109.4 million | $112.4 million |
| Operating Income | $23.0 million | $28.0 million |
| Net Income | $8.2 million | $15.2 million |
| Net Income per Diluted Share | $0.54 | $1.06 |
Income Statement Highlights
J.Jill Inc's gross profit for Q2 FY24 was $109.4 million, compared to $112.4 million in Q2 FY23. Selling, general, and administrative expenses (SG&A) were $86.3 million, up from $84.3 million in the same period last year. The company’s interest expense decreased to $3.7 million from $6.6 million in Q2 FY23, while the income tax provision was $3.1 million, down from $6.7 million.
Balance Sheet and Cash Flow
As of August 3, 2024, J.Jill Inc had a cash balance of $28.5 million. Inventory levels increased to $52.7 million from $45.7 million at the end of Q2 FY23. Net cash provided by operating activities for the first half of FY24 was $37.9 million, compared to $35.6 million in the same period last year. Free cash flow was $33.3 million, up from $28.5 million.
Company Commentary
Claire Spofford, President and Chief Executive Officer of J.Jill, Inc., stated, “We delivered solid second quarter results driven by a strong start to the quarter and ongoing disciplined execution of our operating model amidst a dynamic consumer environment. While we have seen changes in consumer behavior during the summer months which has extended into the start of the third quarter and reflected in our updated guidance, we are continuing to operate the business with great discipline and continue to realize healthy margin performance and deliver significant cash flow generation.”
Outlook
For the third quarter of fiscal 2024, J.Jill Inc expects net sales to be down 1% to up 2% compared to Q3 FY23. The company also anticipates Adjusted EBITDA to be in the range of $23.0 million to $27.0 million. For the full fiscal year 2024, J.Jill Inc has lowered its guidance, now expecting net sales to be flat to up 1% compared to fiscal 2023, with Adjusted EBITDA declining by 4% to 9%.
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.
