J. Jill beats Street but gives weak outlook
Women’s apparel retailer J. Jill reported declining earnings and sales for its second quarter but its performance still managed to beat estimates.
Net income totaled $10.5 million, or 23 cents per share, for the period ended August 4, down from $12.0 million, or 28 cents per share, the prior year. Earnings, adjusted for non-recurring costs, were 24 cents per share. Analysts had expected earnings per share of 23 cents.
J. Jill’s net sales fell to $179.7 million, better than expected, versus $181.4 million for the year ago period. The company said the 0.9% decrease was driven by the calendar shift created by the fifty-third week in fiscal 2017.
Total same-store sales, which include store and direct-to-consumer sales, rose 2.2%. Direct to consumer net sales represented 40.9% of total net sales, compared to 43.1% last year.
J. Jill’s gross margin fell to 64.9%, compared to 67.6% in the year-ago period.
“Our second quarter operating performance was in line with our expectations,” said Linda Heasley, CEO, J. Jill. “We are continuing to take actions to ensure consistent performance in and across all channels.”
Looking ahead to third quarter, the retailer expects its total same-store sales to decrease by 2% to 4%. Its earnings per share are expected to fall between nine cents to 11 cents. Analysts were looking same-store sales growth of 4% and adjusted EPS of 15 cents.
J. Jill operates than 270 stores nationwide and a robust e-commerce platform.
Net income totaled $10.5 million, or 23 cents per share, for the period ended August 4, down from $12.0 million, or 28 cents per share, the prior year. Earnings, adjusted for non-recurring costs, were 24 cents per share. Analysts had expected earnings per share of 23 cents.
J. Jill’s net sales fell to $179.7 million, better than expected, versus $181.4 million for the year ago period. The company said the 0.9% decrease was driven by the calendar shift created by the fifty-third week in fiscal 2017.
Total same-store sales, which include store and direct-to-consumer sales, rose 2.2%. Direct to consumer net sales represented 40.9% of total net sales, compared to 43.1% last year.
J. Jill’s gross margin fell to 64.9%, compared to 67.6% in the year-ago period.
“Our second quarter operating performance was in line with our expectations,” said Linda Heasley, CEO, J. Jill. “We are continuing to take actions to ensure consistent performance in and across all channels.”
Looking ahead to third quarter, the retailer expects its total same-store sales to decrease by 2% to 4%. Its earnings per share are expected to fall between nine cents to 11 cents. Analysts were looking same-store sales growth of 4% and adjusted EPS of 15 cents.
J. Jill operates than 270 stores nationwide and a robust e-commerce platform.