J.Jill swings to profit in strong quarter

J.Jill swung to a profit in its third quarter amid nearly a 30% gain in sales. J.Jill’s total third-quarter net sales role nearly 30%.

The women’s apparel and accessories retailer reported that its net income totaled $11.2 million for the quarter ended Oct. 30, compared to a net loss of $23.2 million in the year-ago period. Adjusted earnings per share was $0.65 compared to a loss of $1.18 last year.

Total net sales rose 29.4% to $151.7 million from the year-ago quarter. Total comparable sales, which includes com store and direct-to-consumer sales, increased by 42.2%.

Direct-to-consumer net sales were down 8.3% over 2020, driven by lower markdown sales and represented 44.9% of total net sales. Adjusted EBITDA for the quarter was $27.0 million compared to a loss of $1.6 million in the third quarter of fiscal 2020.

“These results reflect our continued recovery as we’ve made progress implementing our strategic initiatives resulting in healthy gross margin expansion and significant year-over-year improvement in adjusted EBITDA,” said CEO Claire Spofford. 

Since taking the helm of J.Jill in February 2020 this year, Spofford has led a reset of the brand known, which is for its casual, comfortable clothes that are stylish without being overtly fashion-forward. She has moved it to a greater emphasis on full-price selling. Inventory has been reduced and there is a new focus on gross margins.

“Our focus on full-price selling, improved inventory management, and the frequent flow of inspired products has further strengthened our operating model,” Spofford stated. “We are pleased with our progress as we continue to position J.Jill for long-term sustainable growth that will create value for investors.”

[Read More: Exclusive: Q&A with J.Jill CEO]

The company closed one store during the quarter. It ended the period with 260 stores.