J.Jill's Q1 comparable sales up, raises outlook

First quarter net sales at J.Jill increased 7.5 percent to 161.5 million dollars, while comparable sales increased by 3.1 percent for the quarter under review. Direct to consumer net sales, which represented 47 percent of net sales, were up 11.6 percent compared to the first quarter of fiscal 2023.

For fiscal 2024, the company is raising its guidance and now expects net sales to grow in the range of 1 percent to 3 percent and for adjusted EBITDA to decline in the range of 1 percent and 3 percent.

Commenting on the trading update, Claire Spofford, president and CEO of J.Jill, Inc. stated: “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. In May, we also announced that we paid down approximately 60 million dollars of debt and initiated an ordinary quarterly dividend program.”

Gross profit for the quarter rose to 117.7 million dollars, gross margin to 72.9 percent, operating income increased to 28.4 million dollars and operating income margin rose to 17.6 percent. Adjusted income from operations rose to 29.6 million dollars.

The company’s net Income was increased to 16.7 million dollars, while net income per diluted share rose to 1.16 dollars in the first quarter and adjusted net income per diluted share to 1.22 dollars. Adjusted EBITDA was 35.6 million dollars and adjusted EBITDA margin was 22.1 percent.

J.Jill’s board of directors declared an initial quarterly cash dividend of 7 cents per share payable on June 12, 2024, to stockholders of record as of May 29, 2024.

For the second quarter, the company expects net sales to be flat to down 3 percent and adjusted EBITDA to be in the range of 27 million to 30 million dollars.