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J.Jill, Inc. (NYSE: JILL) announced its financial results for the first quarter of fiscal year 2024, showcasing a robust performance. The company reported net sales of $161.5 million, marking a 7.5% increase compared to $150.2 million in the first quarter of fiscal 2023. This growth was partly attributed to a $7.0 million benefit due to the calendar shift associated with the 53rd week in fiscal 2023. Total company comparable sales, which include both store and direct-to-consumer sales, rose by 3.1% for the quarter.
The company also saw significant improvements in its gross margin and operating income. Gross profit for the quarter was $117.7 million, up from $108.4 million in the same period last year, with a gross margin of 72.9% compared to 72.1% in Q1 FY23. Operating income reached $28.4 million, an increase from $25.4 million in the previous year’s first quarter, resulting in an operating income margin of 17.6%, up from 16.9%. Net income for the quarter was $16.7 million, a substantial rise from $4.6 million in Q1 FY23, translating to a net income per diluted share of $1.16 compared to $0.32 last year.
JILL Beats EPS and Revenue Expectations in Q1
J.Jill’s first-quarter results showed year-over-year growth and exceeded market expectations. Analysts had anticipated earnings per share (EPS) of $0.96 and revenue of $153.29 million for the quarter. The company outperformed these expectations, delivering an EPS of $1.16 ($1.22 adjusted) and net sales of $161.5 million, significantly higher than the forecasted figures.
The company’s direct-to-consumer net sales, which accounted for 47.0% of total net sales, increased by 11.6% compared to the first quarter of fiscal 2023. This growth in the direct-to-consumer segment reflects J.Jill’s successful efforts to enhance its online presence and digital sales channels. The gross margin expansion by 80 basis points and the operating income margin increase by 70 basis points further underscore the company’s strong financial health and operational efficiency.
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J.Jill Raises Full Year Guidance for Fiscal 2024
Looking ahead, J.Jill has raised its full-year guidance for fiscal 2024, reflecting confidence in its ongoing growth trajectory. For the second quarter of fiscal 2024, the company expects net sales to be flat to down 3% compared to the same period in fiscal 2023, considering an approximately $7.0 million negative impact from the calendar shift. Adjusted EBITDA for Q2 FY24 is projected to be in the range of $27.0 million to $30.0 million.
For the full fiscal year 2024, J.Jill now anticipates net sales growth in the range of 1% to 3% compared to fiscal 2023, with Adjusted EBITDA expected to decline by 1% to 3%. This guidance takes into account the loss of the 53rd week in fiscal 2023, which had contributed $7.9 million in net sales and $2.2 million in Adjusted EBITDA, as well as planned investments in the company’s Order Management System (OMS) project amounting to approximately $3 million in operating expenses.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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