J. Jill reported better than expected 3rd quarter 2022 results. Company dropped only one percent to $150,2 million. Comparable store sales dropped 1.2% since the company closed.
Net earnings were 8.9 million compared to $11.2 million in the third quarter of 2021. Fully diluted shares were $0.62 vs. $0.79 in the third quarter of 2021. The company had closed 6 stores in the first three quarters of 2022 and will close four additional stores in the 4th quarter. It will open one store in the fourth quarter and will end the fiscal year with 243 stores.
The company is, headquartered in Quincy, Mass. It had direct sales of 49.1% in the third quarter of 2021 and in the current year has direct sales of 45.9.
J. Jill caters to the 35- to 55-year-old business woman. The clothes are of high quality and management wants to become more relevant to its core customers. It initiated new programs in August, including sizing initiative and welcome campaign.
Management’s outlook for the fourth quarter sales to be flat to down 3 percent. Adjusted EBITDA in the range of 9 to 11 million. For the full fiscal year 2023 the company now expects capital expenditures of $13.0 million. In the face of uncertainty, no other forecast was given.
Claire Spofford, president and CEO of J. Jill stated: “We delivered better than expected third quarter earnings performance supported by our disciplined approach of flowing newness, full price selling, and inventory and expense management. These results reflect our ability to navigate within a challenging consumer environment well as the increased planned strategic investments to support our growth strategies. … As we look ahead to the end of the fiscal year, we continue to take a cautious approach to our outlook. That said, we remain focused on executing against our operating model which has delivered strong financial results year to date.”
POSTSCRIPT: We admire the collection. J. Jill prides itself on 69.9% margins in this quarter, 100 basis points higher than the third quarter last year. The company is eliminating weaker store units and will open stronger locations. Some of the recent best sellers include Sherpa Jackets and Sherpa Pull.