Sales and Revenue - J.Jill's retail channel represented 58.4% of net sales for Fiscal Year 2018, while the direct channel accounted for 41.6%[22][27] - E-commerce represented 90% of the direct channel net sales for Fiscal Year 2018, indicating a strong online presence[27] - In Fiscal Year 2018, 56% of gross sales were generated by credit card holders, indicating strong customer loyalty and engagement through the private label credit card program[46] - E-commerce business accounted for approximately 41.6% of total net sales for Fiscal Year 2018, highlighting its importance to the company's growth strategy[71] - Net sales for the fiscal year ended February 2, 2019, were $706,262,000, representing an increase from $698,145,000 in the previous year[175] - Net sales for the fiscal year ended February 2, 2019, increased by $8.1 million, or 1.2%, to $706.3 million from $698.1 million for the previous fiscal year[207] Customer Engagement and Marketing - Omnichannel customers comprised 22% of the active customer base for Fiscal Year 2018, showing a slight decrease from 23% in Fiscal Year 2017[15] - J.Jill's marketing strategy includes 24 annual catalog editions and various digital and print advertisements to increase brand awareness[43] - The company leverages a data-centric approach, matching approximately 97% of transactions to identifiable customers, which aids in customer relationship management[32] - The customer contact center managed approximately 4.4 million customer interactions in Fiscal Year 2018, enhancing customer experience and feedback collection[52] Store Operations and Expansion - The company plans to open 10 to 12 new stores in Fiscal Year 2019, with the potential to grow its store base by up to 75 stores from the current total of 282[24][39] - The company operates 282 stores across 42 states, with an average store size of approximately 3,700 square feet[154] - The company operated 282 retail stores at the end of fiscal year 2018, compared to 276 stores at the end of fiscal year 2017[208] Financial Performance - Gross profit for the same period was $460,280,000, slightly down from $464,080,000 year-over-year[175] - Operating income decreased to $61,238,000 from $69,187,000, indicating a decline of approximately 13.9%[175] - Net income for the fiscal year was $30,525,000, down from $55,365,000, reflecting a decrease of about 44.9%[175] - Adjusted EBITDA for the fiscal year was $103,471,000, compared to $113,476,000 in the prior year, a decline of approximately 8.9%[175] - Adjusted EBITDA margin was 14.7%, down from 16.3% in the previous year[175] - Selling, general and administrative expenses increased by $4.1 million, or 1.1%, to $399.0 million, with marketing expenses rising by $4.0 million[210] Supply Chain and Sourcing - Approximately 80% of products were sourced through agents, with the remaining 20% sourced directly from suppliers and factories in Fiscal Year 2018[47] - The company sources merchandise globally from seven countries, with China, India, and Vietnam being the top three by volume[48] - No single supplier accounts for more than 20% of merchandise purchased, ensuring diversified sourcing and reduced supply chain risk[48] - 85% of products were sourced from Southeast Asia in Fiscal Year 2018, making the company vulnerable to disruptions in that region[90] Risks and Challenges - The company faces payment-related risks, including increased operating costs due to interchange fees and potential disruptions from third-party payment processors[84] - Future retail store expansion is critical for growth, but the company may face challenges in identifying suitable locations and negotiating favorable lease terms[78] - Competitive pricing pressures in shipping could adversely affect profitability, as customers increasingly seek faster and cheaper delivery options[83] - The company relies on third-party suppliers for logistics and services, and any failure by these suppliers could adversely affect its business and financial condition[94] - War, terrorism, or civil unrest could disrupt merchandise availability and negatively impact store traffic, affecting overall sales[122] Legal and Compliance - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[158] - Compliance with various laws and regulations is critical, and failure to comply could result in lawsuits, fines, and penalties, adversely affecting financial results[118] - The company is subject to evolving data protection laws, which could increase operational costs and expose it to potential liability if compliance is not met[106] Corporate Governance - TowerBrook Capital Partners LP controls approximately 59% of the company's common stock, giving it effective control over significant corporate transactions[139] - The company has filed registration statements for 6,069,213 shares of common stock issued or reserved for employees, which could dilute existing ownership[149] - The company may issue preferred stock without stockholder approval, which could adversely affect the voting power or value of common stock[150]