J. Jill swings to loss in tough Q3

J. Jill saw year-over-year declines in sales and earnings during Q3 fiscal 2020, although topline results improved from the previous quarter.

The specialty women’s apparel retailer reported a net loss of $23.2 million in the third quarter of fiscal 2020, compared to income of $2.4 million in the third quarter of fiscal 2019. Net loss per share was $2.52, compared to income of $0.27 a year earlier.

Total net sales for the quarter totaled $117.2 million, down 29% from $166.1 million from the prior year period. Direct-to-consumer net sales represented 63.3% of total net sales, a 54% increase compared to 43% in the third quarter of fiscal 2019.

J. Jill is reporting these results as it undergoes a financial restructuring plan, which provides the company with no less than $15 million of new capital and extends its debt maturities to May 2024. The agreement is expected to provide J. Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan. 

“Our third quarter results represent sequential topline improvement as the majority of our stores were reopened for the entire period,” said James S. Scully, interim CIO of J. Jill Inc. “Direct sales were up 4% for the quarter and penetration remained healthy at over 60% of total sales. We have continued to be disciplined with regards to cost and inventory management, and we took aggressive actions to effectively clear units during the quarter to better align our inventory position with current demand.”

The company closed five stores in the third quarter of fiscal 2020 and ended the quarter with 276 stores. J. Jill is not providing financial guidance at this time, but expects to end the year with approximately 270 stores.