Why Is Women's Apparel Company J.Jill Stock Shooting Higher Today?

J. Jill Inc JILL shares are trading higher after the company reported better-than-expected first-quarter FY24 earnings and raised the outlook.

The company reported first-quarter FY24 sales growth of 7.5% year-on-year to $161.51 million, beating the analyst consensus estimate of $154.92 million.

Total company comparable sales increased by 3.1%. Direct to consumer net sales climbed 11.6% Y/Y, constituting 47% of total sales.

Gross profit grew 8.6% Y/Y to $117.7 million, and the gross margin expanded 80 basis points to 72.9%.

Operating margin expanded 70 basis points to 17.6%, and operating income for the quarter increased 11.8% to $28.4 million.

J.Jill held $77.1 million in cash and equivalents as of May 4. Operating cash flow for the quarter totaled $21.5 million with a free cash flow of $19.2 million.

Adjusted EBITDA for the quarter was $35.6 million versus $31.9 million last year. Adjusted EPS of $1.22 beat the consensus of $0.99.

Inventory at the end of the first quarter was $53.1 million compared to $53.8 million last year.

“We are very pleased with our first quarter results which exceeded expectations driven by a strong end to the period as we transitioned into the heart of our big season leading up to Mother’s Day,” said CEO Claire Spofford.

Outlook: J.Jill expects second-quarter revenue to be flat to down 3% and adjusted EBITDA of $27 million – $30 million.

J.Jill raised FY24 sales growth guidance from flat to up in the low-single digits to a growth of 1% – 3%. It sees FY24 adjusted EBITDA to decline 1% – 3%.

Price Action: JILL shares are trading higher by 7.64% at $37.90 in premarket at the last check Friday.

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