J.Jill Beats Q3 Earnings Estimates, Announces Share Repurchase Program

Core Insights - J.Jill, Inc. reported third-quarter fiscal 2024 results with net sales in line with estimates and earnings per share exceeding expectations, both showing year-over-year growth [1][3][4] Financial Performance - Quarterly earnings were 89 cents per share, surpassing the Zacks Consensus Estimate of 80 cents, and increased by 7.2% from 83 cents in the prior year [3] - Net sales reached $151.3 million, a 0.3$150.9 million in the same quarter last year, aligning with the Zacks Consensus Estimate [4] - Total comparable sales declined by 0.8%, impacted by approximately 50 basis points due to hurricane disruptions [5] - Gross profit decreased by 0.6% to $108 million, with gross margin contracting by 60 basis points to 71.4$88.6 million, with SG&A as a percentage of net sales increasing by 70 basis points to 58.4% [7] - Adjusted EBITDA totaled $26.8 million, down from$28.6 million in the prior year, indicating a decline of 6.1% [8] Operational Updates - The company ended the quarter with 247 stores, opening three new stores and temporarily closing one due to hurricane damage [9] - Cash and cash equivalents stood at $38.8 million, with long-term debt at$69.1 million and total shareholders' equity at $103.3 million [10] - Net cash flow from operations was$19.1 million, compared to $21.1 million in the prior year, with free cash flow totaling$13.6 million [11] Future Outlook - For the fiscal fourth quarter, management anticipates net sales to decline by 4% to 6% compared to the same quarter last year, with total comparable sales expected to increase by 1% to 3% [13] - For fiscal 2024, J.Jill forecasts net sales growth to be flat to up 1%, with adjusted EBITDA projected between $105 million and$107 million, reflecting a year-over-year decrease of 5-7% [14] - Excluding the impact of the 53rd week and OMS project expenses, net sales growth is estimated at 1-2% with adjusted EBITDA decline of 2-4% [15] Shareholder Returns - The company announced a quarterly dividend of 7 cents per share, payable on January 9, 2025 [12] - A new share repurchase program was authorized, allowing the company to buy back up to $25 million of shares over the next two years, indicating management's confidence in the business [2][11]