Apparel Firm J. Jill Styles A Win: Sales Rise And Margins Expand In Q4

J. Jill, Inc.  JILL reported fourth-quarter FY23 sales growth of 1.2% year-on-year to $149.45 million, beating the analyst consensus estimate of $147.40 million.

Total company comparable sales decreased by 3.6%. Direct to consumer net sales climbed 4% Y/Y.

Gross profit grew 5.8% Y/Y to $100.6 million, and the gross margin expanded 290 basis points to 67.3%. Operating margin expanded from 5.3% to 7%, and operating income for the quarter increased 34.6% to $10.5 million.

Adjusted EBITDA for the quarter was $17.6 million versus $15 million last year. Adjusted EPS of $0.23 beat the consensus of $0.00.

J. Jill held $62.2 million in cash and equivalents as of February 3, 2024. Operating cash flow for the year totaled $63.3 million. Inventory at the end of the quarter increased 5.3% Y/Y to $53.3 million.

“This performance is once again a testament to the execution of our disciplined operating model which has continued to support the healthy margin profile and strong cash generation of the business,” said President and CEO Claire Spofford.

Outlook: J. Jill expects first-quarter net sales to be up in the low to mid-single-digits and adjusted EBITDA of $29 million – $33 million. It sees FY24 net sales to be flat to up in the low-single digits and adjusted EBITDA to be down in the mid-single digits.

Price Action: JILL shares are trading higher by 5.3% at $26.04 on the last check Wednesday.