Apparel retailer J.Jill's Q2 sales beat estimates

Overview

• J.Jill Q2 FY25 sales down 0.8% to $154 mln, beating estimates

• Adjusted EPS for Q2 FY25 beats expectations at $0.81

• Gross margin falls to 68.4% from 70.5% in prior year

• Co closes two stores in Q2, total store count at 247

Outlook

• Company expects Q3 FY25 net sales flat to down low-single digits

• J.Jill anticipates Q3 FY25 comparable sales down low to mid-single digits

• Company projects Q3 FY25 adjusted EBITDA between $18 mln and $22 mln

• J.Jill sees FY25 capital expenditures of $20 mln to $25 mln

Result Drivers

• CUSTOMER TRAFFIC - Sequential improvement in sales trends attributed to better customer traffic and positive response to summer sales, per CEO Mary Ellen Coyne

• INVENTORY MANAGEMENT - Actions taken to align inventories with current trends, aiding in navigating a dynamic environment

• STRATEGIC FOCUS - Emphasis on evolving product assortment and enhancing customer journey to expand customer base, according to CEO Coyne

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for JJill Inc is $19.50, about 13.5% above its September 2 closing price of $16.87

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw5DS1c0a