J.Jill, Inc. reported a drop in its first quarter net sales of 4.9 percent to 149.4 million dollars.
The company said, comparable sales, which includes comparable store and direct to consumer sales, decreased by 2.7 percent.
For the second quarter, the company expects revenues to be down mid-single digits and for adjusted EBITDA to be in the range of 26 million dollars and 31 million dollars.
For fiscal 2023, the company now expects annual adjusted EBITDA dollars to be down mid-single digits.
Commenting on the company’s performance, Claire Spofford, president and chief executive officer of J.Jill, Inc. stated in a release: “Our first quarter results demonstrate the ongoing execution of our disciplined operating model especially as we anniversaried a strong comparison to last year. As we move into the remainder of the year, we will maintain our disciplined approach to managing the business as we continue to navigate a dynamic environment.”
The company’s direct to consumer net sales, which represented 45 percent of sales, were down 7.7 percent compared to the first quarter of fiscal 2022.
Gross profit was 107.5 million dollars compared to 109.5 million dollars last year, while gross margin was 72 percent compared to 69.7 percent.
Net income for the quarter was 4.6 million dollars compared to 14.4 million dollars in the first quarter of fiscal 2022, and net Income per diluted share was 32 cents compared to 1.02 dollars. Adjusted net income per diluted share in the first quarter of fiscal 2023 was 96 cents compared to 1.02 dollars last year.
The company added that adjusted EBITDA was 31.9 million dollars compared to 31.3 million dollars and adjusted EBITDA margin was 21.3 percent compared to 19.9 percent.
The company opened two new stores and ended the quarter with 245 stores.