J.Jill’s comp sales soar in Q1

Despite a challenging retail landscape, J.Jill’s same-store sales growth and profits not only climbed, but topped analyst expectations.



For the first quarter ended April 29, the mall-based women’s specialty chain’s overall revenue increased 12.5% to $166.1 million — a jump from $147.7 million in the first quarter of fiscal 2016. This also beat analyst estimates at $162 million.



Total comparable store sales, which includes same-store sales as well as e-commerce sales, increased by 9.9%. Direct-to-consumer net sales specifically, represented 42.6% of total net sales, up from 40.7% in the first quarter of fiscal 2016.



When it comes to the bottom line, adjusted earnings per share increased to $0.24 from $0.16 a year ago. This surpassed expectations of $0.19 a share.



“We are pleased with our start to the year and our ability to consistently capitalize on the strengths of our omnichannel data-driven business mod-el,” said J.Jill’s Paula Bennett, president and CEO. “This quarter further exemplifies how well positioned we are to continue to capture market share and drive bottom-line earnings.”



At a time when other mall-based chains are struggling, Bennett credits the company’s gains to what she describes as a “hyper-focus on the customer, knowing who she is, what she wants, and what is relevant to her.”



In addition to delivering an optimal product assortment and omnichannel shopping experience, “We are confident we have the right formula and approach in place to continue to drive these consistent positive results and to deliver against our goals for 2017 and beyond,” she added.



Looking ahead to the second quarter of fiscal 2017, the company expects total comparable sales to increase in the high single digits. GAAP diluted earnings per share are expected to be in the range of $0.26 to $0.28. The retailer also predicts that adjusted diluted earnings per share, which ex-cludes approximately $0.9 million of non-recurring expenses associated with the company’s initial public offering, are expected to be in the range of $0.27 to $0.29.



For the full 2017 fiscal year, total comparable sales are expected to in-crease in the high single digits. GAAP diluted earnings per share are ex-pected to be in the range of $0.72 to $0.76.



Adjusted diluted earnings per share, which excludes approximately $5.0 million of non-recurring expenses associated with the company’s initial public offering, are expected to be in the range of $0.80 to $0.84. Both GAAP and adjusted diluted earnings per share include approximately $1.4 million of public company costs not incurred in 2016.