J.Jill posts positive Q3, announces CEO Claire Spofford to retire next year

J.Jill reported third quarter net sales increased 0.3 percent to 151.3 million dollars, while comparable sales, which includes comparable store and direct to consumer sales, decreased by 0.8 percent, negatively impacted by approximately 50 basis points due to hurricane-related disruptions in the quarter.

The company also announced that Claire Spofford, president and CEO has decided to retire after a distinguished career in the retail space. Spofford is expected to remain in her current role until April 2025.

Commenting on the third quarter update, Claire Spofford stated: “We delivered third quarter results inline with our expectations as we continued to execute the disciplined operating model yielding another quarter of healthy overall margin performance.”

J.Jill CEO Claire Spofford to retire next year

The company added that since Spofford’s appointment as CEO in February 2021, she has led the company into a new era delivering healthy, sustainable margin performance and significant cash flow generation driven by disciplined inventory management and a strong focus on full-price selling.

Over her tenure with J.Jill, the company also fortified its balance sheet, strengthened its operational foundation, and modernized its brand as a premium casual retailer.

Commenting on Spofford’s retirement, Michael Rahamim, chairman of the company’s board, said, “Under Claire’s leadership, J.Jill has strengthened its operating model and made strategic investments to improve the overall health of the business, creating a pathway toward profitable, sustainable growth.”

Prior to J.Jill, Spofford held leadership positions at Cornerstone Brands, Garnet Hill, Orchard Brands, and Timberland. She presently holds positions on the board of directors for Leslie’s, Inc. and Reclaim Childhood.

“After four years leading this incredible company and after nearly three decades leading retail organizations, I have decided that the time is right for a new chapter,” added Spofford.

Highlights of J.Jill’s Q3 results

The company’s direct to consumer net sales, which represented 45.7 percent of net sales, were up 0.3 percent.

Gross profit was 108 million dollars, and gross margin was 71.4 percent. Operating income was 19.2 million dollars, while operating income margin for the quarter was 12.7 percent. Adjusted income from operations was 21.4 million dollars.

Third quarter net Income was 12.3 million dollars and net income per diluted share was 80 cents, while adjusted net income per diluted share rose to 89 cents.

Adjusted EBITDA for the quarter was 26.8 million dollars and adjusted EBITDA margin was 17.7 percent.

The company opened three new stores and the store count at the end of the quarter was 247 stores.

Review of J.Jill’s year to date results

Net sales for the thirty-nine weeks increased 2.2 percent to 468 million dollars and comparable sales increased by 1.4 percent. Direct to consumer net sales, which represented 46.6 percent of net sales, were up 5.1 percent.

Gross profit for the period was 335.1 million dollars and gross margin was 71.6 percent. Operating income was 70.6 million dollars and operating income margin was 15.1 percent.

Net Income for the period was 37.2 million dollars and net income per diluted share was 2.48 dollars, while adjusted net income per diluted share rose to 3.15 dollars. Adjusted EBITDA was 92.6 million dollars and adjusted EBITDA margin was 19.8 percent.

The company opened four new stores and operated 247 stores at the end of the period.

J.Jill projects marginal increase in FY24 net sales

For the fourth quarter, the company expects net sales to be down 4 percent to 6 percent and comparable sales to be up 1 percent to 3 percent. The company also expects adjusted EBITDA to be in the range of 12 million dollars to 14 million dollars for the fourth quarter of fiscal 2024.

For fiscal 2024, the company expects net sales to be about flat to up 1 percent with comparable sales to be up 1 percent to 2 percent and for adjusted EBITDA to be in the range of 105 million dollars to 107 million dollars, reflecting a year-over-year decline of 5 percent to 7 percent compared to fiscal 2023.

On December 4, 2024, the board declared a cash dividend of 7 cents per share, payable on January 9, 2025 to stockholders of record of issued and outstanding shares of the Company’s common stock as of December 26, 2024.