Q2 2024 JJill Inc Earnings Call Transcript
Key Points
- J.Jill Inc (JILL) delivered a solid second quarter performance with total comparable sales growth of 1.7% and adjusted EBITDA of $30.2 million, slightly above expectations.
- The company saw strong full-price selling in the early summer collection, particularly around the Mother's Day holiday.
- J.Jill Inc (JILL) successfully managed inventory and prepared for the fall product launch, maintaining comparable inventories flat by the end of the period.
- The company is excited about the launch of its iconic J.Jill series and the ECOVERO fabric in the wherever sub-brand collection, highlighting sustainable fabrications.
- J.Jill Inc (JILL) initiated a quarterly dividend program and made a voluntary debt paydown of approximately $85 million, reflecting strong confidence in its business and opportunities for profitable growth.
- The company experienced a meaningful shift in consumer demand beginning in July, leading to a slowdown in sales.
- August continued to show softness, making it difficult to assess and evaluate the drivers of the change in demand trends.
- Store sales for Q2 were down about 5% compared to Q2 2023, driven primarily by lower traffic and the calendar shift.
- Gross margin for Q2 was down 128 basis points versus Q2 2023, driven by a higher mix of markdowns and elevated freight costs.
- The company revised its guidance for the full year, reflecting a cautious outlook due to the uncertain macro environment and ongoing softness in retail traffic.
Thank you for standing by, and welcome to the J.Jill Inc second quarter 2024 earnings conference call. (Operator Instructions)
I'd now like to turn the call over to Claire Spofford, Chief Executive Officer and President, you may begin.
Thank you, operator, and hello, everyone. Thank you for joining us this morning. As detailed in our press release, we delivered a solid second quarter performance, reflecting total comparable sales growth of 1.7% and adjusted EBITDA of $30.2 million, slightly above our expectations and yielding a 19.4% adjusted EBITDA margin for the period.
Underlying this performance with a strong start to the period, which saw healthy full-price selling as customers responded well to our early summer collection, particularly around the Mother's Day holiday we continued to see relative strength in our direct channel, which helped to offset ongoing dynamic trends in store traffic.
As the quarter progressed, we noticed a meaningful shift in
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