Updated 4:16 p.m. ET March 19
J.Jill, navigating a tough consumer spending climate, managed to post fourth-quarter earnings that topped Wall Street estimates.
While the bottom line was down from a year ago, on adjusted basis, earnings for the quarter ended Feb. 1 hit 32 cents per share, ahead of the 22 cents expected.
The Quincy, Mass.-based women’s specialty retailer’s net income declined to $2.2 million, or 14 cents per diluted share, compared with $4.8 million, or 33 cents per share, a year earlier.
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Total comparable sales, which includes comparable store and direct-to-consumer sales, increased by 1.9 percent in the fourth quarter.
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Net sales for the fourth quarter of fiscal 2024 decreased 4.9 percent to $142.8 million compared with $150.3 million a year earlier, when sales were boosted by $7.9 million from an extra week in the fiscal quarter.
Wall Street liked the results, pushing the stock up 4.7 percent on Wednesday to close at $19.49.
“Fiscal 2024 performance is a testament to our disciplined operating model as we delivered on our objectives while strengthening our balance sheet, implementing robust total shareholder return strategies and investing in new store growth and systems,” Claire Spofford, J.Jill’s outgoing president and chief executive officer, said in a statement.
“Although this year was not without challenges as we continued to navigate a dynamic macro environment, I am proud of all that the team has accomplished enabling us to continue to drive strong cash generation supporting the recent increase of the quarterly dividend and ongoing investment in growth strategies and capital priorities,” Spofford said. “As we enter fiscal 2025, despite the uncertain outlook near-term with the slow start to the first quarter and continued price sensitivity from customers, I am confident in the team’s ability to continue to operate with discipline while positioning the brand for long-term success. With the implementation of the new order management system underway, a pipeline of new stores building and new leadership with Mary Ellen Coyne joining later this spring, there is much to look forward to as J.Jill enters its next chapter well positioned to lean into growth.”
The company opened five stores in the fourth quarter, bringing the store count to 252.
Coyne, the former CEO of J.McLaughlin, takes over as J.Jill’s next CEO and president in May. Spofford announced her retirement from the top job in December.
Spofford ran the 65-year-old J.Jill for four years. During her tenure, she was on a mission to elevate the brand’s profile and put greater focus on selling full-price casual merchandise appropriate for on the job and after hours. It’s a segment of the apparel business that’s sprung into popularity with people return to working at their offices after the pandemic. J.Jill sells merchandise under its own private label and primarily caters to middle-aged and older women. Spofford once told WWD that J.Jill’s sweet spot is “sophisticated premium casual.”
Also on Wednesday, the board declared a cash dividend of 8 cents per common share payable on April 16, a 14.3 percent increase over the previous dividend. It equates to an annualized dividend rate of 32 cents per common share.
For all of 2024, net Income was $39.5 million compared to $36.2 million for 2023. Net sales increased 0.5 percent to $610.9 million compared to $608 million for 2023. The 53rd week in fiscal 2023 contributed $7.9 million of net sales compared to the 52-week fiscal 2024.