J.Jill(JILL)2024-12-11 21:11Financial Performance - Q3 FY24 net sales increased by 0.3% to $151.3 million compared to $150.9 million in Q3 FY23, benefiting from a calendar shift[4] - Total company comparable sales decreased by 0.8% in Q3 FY24, impacted by approximately 50 basis points due to hurricane-related disruptions[4] - Direct to consumer net sales represented 45.7% of total net sales and increased by 0.3% compared to Q3 FY23[4] - Gross margin for Q3 FY24 was 71.4%, down from 72.0% in Q3 FY23[4] - Operating income for Q3 FY24 was $19.2 million, with an operating income margin of 12.7%, compared to $22.1 million and 14.7% in Q3 FY23[4] - Net income for Q3 FY24 was $12.3 million, an increase from $11.6 million in Q3 FY23[4] - For FY24, the company anticipates net sales to be flat to up 1% compared to FY23, with Adjusted EBITDA expected to decline by 5% to 7%[12] - Net income for the thirteen weeks ended November 2, 2024, was $12,348 thousand, compared to $11,616 thousand for the same period in 2023, representing an increase of 6.3%[35] - Adjusted EBITDA for the thirteen weeks ended November 2, 2024, was $26,808 thousand, down from $28,552 thousand in the prior year, reflecting a decrease of 6.1%[35] - For the thirty-nine weeks ended November 2, 2024, net income was $37,235, compared to $31,434 for the same period last year, indicating a year-over-year increase of 18.4%[49] Future Outlook - The company expects Q4 FY24 net sales to decline by 4% to 6% compared to the 14-week Q4 FY23[11] - The company authorized a share repurchase program for up to $25.0 million over the next 2 years, reflecting confidence in long-term opportunities[9] Store Operations - The company opened three new stores in Q3 FY24, maintaining a total store count of 247[5] Cash Flow and Investments - The company reported a net cash provided by operating activities of $19,067 for the thirteen weeks ended November 2, 2024, down from $21,067 in the prior year, a decrease of 9.5%[51] - Free cash flow for the thirteen weeks ended November 2, 2024, was $13,580, compared to $17,412 for the same period last year, reflecting a decline of 22.1%[52] - The company reported a net cash used in investing activities of $(5,487) for the thirteen weeks ended November 2, 2024, compared to $(3,655) in the prior year, indicating an increase in investment spending[51] Equity and Compensation - Total shareholders' equity increased significantly from $37,218 million to $103,261 million, an increase of approximately 177.5%[33] - Equity-based compensation expense for the thirteen weeks ended November 2, 2024, was $1,726 thousand, compared to $942 thousand in the prior year, an increase of 83.3%[41] - The company incurred equity-based compensation expenses of $4,676 for the thirty-nine weeks ended November 2, 2024, compared to $2,757 in the prior year, an increase of 69.5%[49] Non-GAAP Measures - Adjusted EBITDA is used as a key performance measure, although it is a non-GAAP financial metric and should not be considered a substitute for GAAP measures[19] - The company emphasizes the importance of reviewing reconciliations of non-GAAP measures to GAAP measures for a comprehensive understanding of financial performance[20] - Adjusted net income for the thirteen weeks ended November 2, 2024, was $13,844, compared to $12,028 for the same period last year, representing a year-over-year increase of 15.2%[46] - Adjusted net income per share (diluted) increased to $0.89 for the thirteen weeks ended November 2, 2024, up from $0.83 in the prior year, reflecting a growth of 7.2%[46] - Adjusted income from operations for the thirteen weeks ended November 2, 2024, was $21,371 thousand, compared to $22,477 thousand in the prior year, a decrease of 4.9%[41] - The adjusted tax provision for adjusted net income was estimated at 27.2% for the thirty-nine weeks ended November 2, 2024, compared to 27.9% for the thirty-nine weeks ended October 28, 2023[49] Assets and Liabilities - Total current assets decreased from $138,129 million to $125,811 million, a decline of approximately 8.5%[33] - Total liabilities decreased from $390,962 million to $314,995 million, a reduction of approximately 19.4%[33] - Current portion of long-term debt decreased from $35,353 thousand to $2,188 thousand, a decline of approximately 93.8%[33] Miscellaneous - The company experienced a loss due to hurricane amounting to $252 for the thirteen weeks ended November 2, 2024, with no such loss reported in the prior year[46]