J.Jill(JILL) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the thirteen weeks ended October 28, 2023, was $12.348 million, compared to$ 11.616 million for the same period in 2022, representing a year-over-year increase of 6.3%[86] - Adjusted EBITDA for the thirteen weeks ended October 28, 2023, was $26.808 million, down from$ 28.552 million in the prior year, reflecting a decrease of 6.1%[86] - Net sales for the thirteen weeks ended October 28, 2023, were $151.260 million, slightly up from$ 150.881 million in the same period last year, indicating a growth of 0.3%[86] - Adjusted EBITDA margin for the thirteen weeks ended October 28, 2023, was 17.7%, compared to 18.9% for the same period in 2022, showing a decline of 1.2 percentage points[86] - Operating income for the thirteen weeks ended November 2, 2024, was $19.2 million, a decrease of$ 2.9 million, or 13.1%, from $22.1 million in the prior year[88] - Net income for the thirteen weeks ended November 2, 2024, was$ 12.3 million, an increase of $0.7 million, or 6.3%, from$ 11.6 million for the same period in 2023[88] - For the thirty-nine weeks ended November 2, 2024, net sales increased by $10.3 million, or 2.2%, to$ 468.0 million compared to $457.8 million in the prior year[97] - Gross profit for the thirty-nine weeks ended November 2, 2024, increased by$ 5.8 million, or 1.8%, to $335.1 million, with a gross margin of 71.6% compared to 71.9% in the prior year[99] Expenses and Costs - SG&A expenses for the thirteen weeks ended November 2, 2024, increased by$ 2.2 million, or 2.5%, to $88.6 million, representing 58.6% of net sales[91] - SG&A expenses for the thirty-nine weeks ended November 2, 2024, increased by$ 10.4 million, or 4.1%, to $264.1 million, representing 56.4% of net sales[100] - The company incurs pre-opening costs for new stores, which include payroll, travel, training, and initial inventory costs, impacting short-term financial performance[83] Cash Flow and Debt - Interest expense for the thirty-nine weeks ended November 2, 2024, was$ 13.0 million, a decrease of $5.7 million, or 30.6%, from$ 18.8 million in the prior year[103] - The company recorded a loss on extinguishment of debt of $8.6 million for the thirty-nine weeks ended November 2, 2024, related to the voluntary prepayment of a portion of the Term Loan Credit Agreement[101] - The income tax provision was$ 13.8 million for the thirty-nine weeks ended November 2, 2024, compared to $13.3 million for the same period in 2023, with effective tax rates of 27.1% and 29.8% respectively[107] - As of November 2, 2024, the company had$ 38.8 million in cash and $35.7 million of total availability under its ABL Facility[108] - Net cash provided by operating activities increased to$ 56.9 million for the thirty-nine weeks ended November 2, 2024, compared to $56.7 million for the same period in 2023[113] - Net cash used in investing activities was$ 10.0 million for the thirty-nine weeks ended November 2, 2024, down from $10.8 million in the same period in 2023[115] - Net cash used in financing activities was$ 70.3 million for the thirty-nine weeks ended November 2, 2024, compared to $68.9 million for the same period in 2023[116] - The company made voluntary principal prepayments of$ 58.2 million and $27.2 million on its Term Loan Credit Agreement during Fiscal Year 2024[111] - As of November 2, 2024, the remaining Term Loan Facility principal balance was$ 76.5 million, with a scheduled repayment of $2.2 million prior to January 31, 2025[111] Dividends and Stock Repurchase - The company declared a quarterly cash dividend of$ 0.07 per share, resulting in total dividend payments of $1.0 million for the thirteen weeks and$ 1.8 million for the thirty-nine weeks ended November 2, 2024[117] - The company is authorized to repurchase up to $25.0 million of its common stock over the next two years under a newly approved Share Repurchase Program[108] Market and Strategic Initiatives - The ongoing implementation of strategic initiatives, including enhancements to the ecommerce platform and information systems, is expected to impact future operating results positively[81] - The company faces challenges from overall economic trends, including inflationary pressures and reduced consumer confidence, which may affect demand for merchandise[81] - The retail industry remains highly competitive, with the company needing to anticipate fashion trends to maintain customer appeal and attract new customers[81] - The total company comparable sales calculation is based on a 52-week period, which may not be comparable to sales data from other companies due to different calculation methods[83] - The company operates over 200 stores nationwide and has a robust ecommerce platform, contributing to its customer experience strategy[80]