US' J.Jill reports gross margin of 69.9% in Q3 FY22, up by 100 bps YOY

The company’s total net sales for Q3 FY22 were down 1 per cent to $150.2 million, compared to $151.7 million for Q3 FY21. Total comparable sales, which includes comparable store and direct to consumer sales, decreased by 1.2 per cent for the third quarter of fiscal 2022, compared to Q3 FY21. Direct to consumer net sales were up 0.4 per cent in Q3 FY22, compared to the corresponding period of fiscal 2021, and represented 45.5 per cent of sales, J.Jill said in a press release.

Gross profit was $105 million, compared to $104.5 million in the third quarter of fiscal 2021.

Selling, general, and administrative expense in Q3 FY22 was $84.9 million, compared to $85.5 million in Q3 FY21.

In Q3 FY22, the income from operations was $18.9 million, compared to $19 million in the third quarter of fiscal 2021. Adjusted Income from operations, which excludes non-recurring items and impairment charges was $20.2 million, compared to $18.8 million in Q3 FY21. The company incurred $1.3 million of impairment charges primarily related to right-of-use assets and leasehold improvements.

J.Jill’s net income was $8.9 million in Q3 FY22, compared to $11.2 million in the third quarter of fiscal 2021. Adjusted EBITDA for Q3 FY22 was $27.5 million, compared to $27 million in Q3 FY21. Adjusted EBITDA margin for the third quarter of fiscal 2022 was 18.3 per cent, compared to 17.8 per cent in the third quarter of fiscal 2021.

The company did not close or open any stores in the third quarter of fiscal 2022 and ended the quarter with 247 stores.

For the first three quarters of fiscal 2022, total net sales were up 6.3 per cent to $467.6 million, compared to $440.1 million for the first three quarters of FY21.

The company’s gross profit was $327 million in the first three quarters of FY21 compared to $301.7 million in the corresponding period of previous fiscal. Gross margin was 69.9 per cent compared to 68.6 per cent in the thirty-nine weeks ended October 30, 2021.

Income from operations in the first three quarters of FY22 was $70.9 million, compared to $51.2 million in the corresponding period of last year.

J.Jill’s net income in the first three quarters of FY22 was $41.1 million, compared to a net loss of $31.7 million which included $59.8 million related to the fair value adjustment of the warrants and the priming loan embedded derivative for the first three quarters of FY21.

Adjusted EBITDA for the first three quarters of FY22 was $94.4 million, compared to $76.6 million in the corresponding period last year.

The company closed 6 stores in the thirty-nine weeks ended October 29, 2022, and ended the period with 247 stores.

J.Jill’s cash flow from operations for the thirty-nine weeks ended October 29, 2022, was $66.7 million, compared to $53.4 million in the thirty-nine weeks ended October 30, 2021. The company ended the third quarter of fiscal 2022 with a cash balance of $90.1 million.

For the fourth quarter of fiscal 2022, J.Jill expects revenues to be flat to down 3 per cent compared to the fourth quarter of fiscal 2021, and for adjusted EBITDA to be in the range of $9 million and $11 million.

For fiscal 2022, the company expects revenues to grow between 4 per cent and 5 per cent compared to fiscal 2021, and for adjusted EBITDA to be in the range of $103 million and $105 million.

For fiscal 2022, J.Jill now expects total capital expenditures of about $13 million. The company expects to close net 4 stores in the fourth quarter of fiscal 2022, including the opening of 1 new store late in the fourth quarter, ending the year with 243 stores.

Fibre2Fashion News Desk (DP)