J.Jill reports increase in Q3 sales, swings to profit

US womenswear retailer J.Jill has swung to a profit in the third quarter of the year amid a near 30 percent increase in sales.

In the 13 weeks to October 30, net sales increased 29.4 percent to 151.7 million dollars compared to the same period a year earlier.

Total company comparable sales, which includes comparable store and direct to consumer sales, were up 42.2 percent.

But direct to consumer net sales were down 8.3 percent, driven by lower markdown sales.

The increase in sales helped the retailer swing to a net income of 11.2 million dollars compared to a loss of 23.2 million dollars in the third quarter of fiscal 2020.

J.Jill upbeat on recovery

President and CEO Claire Spofford said in a statement: “These results reflect our continued recovery as we’ve made progress implementing our strategic initiatives resulting in healthy gross margin expansion and significant year-over-year improvement in Adjusted EBITDA.

“Our focus on full-price selling, improved inventory management, and the frequent flow of inspired products has further strengthened our operating model.”

Looking forward, the company expects fourth-quarter revenue to grow compared to the fourth quarter of fiscal 2020.

It also expects “strong” adjusted EBITDA growth driven by full-price selling and a reduction in promotions which the company said will “more than offset expected incremental freight pressures and costs related to increased store operating hours and shipping costs”.