For the second straight quarter, women’s apparel and accessories retailerJ.Jill Inc. went from net loss to net income.
For the fourth quarter of its fiscal year 2021, net income at J.Jill totaled $3.6 million, compared to a net loss of $26.9 million in the fourth quarter of fiscal 2020. The retailer also swung from net loss to profit year-over-year in the third quarter of fiscal 2021. During fiscal 2022, the company expects up to 10 net store closures.
For the fourth quarter: Total net sales for the quarter were up 15.3% to $145.2 million, compared to $125.9 million the year-earlier quarter. Total company comparable sales, which includes same-store and direct-to-consumer sales, increased by 19.7%. However, direct-to-consumer net sales were down 8.8% from 2020, driven by lower markdown sales, and represented 52.1% of total net sales.
Net income per diluted share was $0.25, compared to a net loss of $2.80 in the fourth quarter of fiscal 2020, including the impact of non-recurring items. Excluding the impact of these items, adjusted net income per diluted share in the fourth quarter of fiscal 2021 was $0.15, compared to a loss of $1.30 in the fourth quarter of fiscal 2020.
The company closed seven stores in the fourth quarter of fiscal 2021 and ended the quarter with 253 stores.
For the full year: Total net sales for fiscal 2022 were up 37.1% to $585.2 million, compared to $426.7 million for the prior fiscal year. Total company comparable sales increased by 23.4%. Direct-to-consumer net sales grew 4.4% over 2020 and represented 49.8% of total net sales, compared to 65.5% for the preceding year.
Net Loss was $28.1 million, which includes $59.8 million of various financial charges and fair value adjustments, compared to a loss of $139.4 million for fiscal 2020. Net loss per diluted share was $2.26, compared to a net loss of $15.22 the previous year, including the impact of non-recurring items.
For the first quarter of fiscal 2022, the company expects revenues to grow between 11% and 14% compared to the first quarter of fiscal 2021.
“Fiscal 2021 marked a year of significant recovery for J.Jill, driven by the strengthening of our operating model focused on delivering gross margin improvement through disciplined inventory management and full price selling,” said Claire Spofford, president and CEO of J.Jill Inc. “We delivered significant adjusted EBITDA expansion while navigating a dynamic macro environment, particularly in the second half of the year. I want to thank all of my teammates at J. Jill for their contributions to driving our strategic objectives.”
Spofford also commented on expectations for the current fiscal year.
“As we move into fiscal 2022, we are pleased with our performance to date, and we enter the year building on the disciplines we have established, particularly with regard to inventory and expense management,” said Spofford. “Looking ahead, our focus will remain on driving profitable growth while introducing new customers to our relevant and compelling brand and products.”
[Read More:Exclusive: Q&A with J.Jill CEO]
Headquartered outside Boston, J.Jill operates 253 stores nationwide and an e-commerce platform.
As a seasoned retail industry expert, I bring a wealth of knowledge and experience to the discussion of J.Jill Inc.'s recent financial performance. Having closely followed the retail sector for years, my insights are grounded in a comprehensive understanding of market dynamics, financial analyses, and industry trends.
Let's delve into the key concepts highlighted in the provided article:
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Financial Performance Overview:
- J.Jill Inc., a women's apparel and accessories retailer, has achieved a notable turnaround in its financials. For the second consecutive quarter, the company transitioned from a net loss to net income.
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Fourth Quarter Fiscal Year 2021 Highlights:
- In the fourth quarter of fiscal year 2021, J.Jill reported a net income of $3.6 million, a significant improvement from a net loss of $26.9 million in the same quarter of the previous year.
- Total net sales for the quarter increased by 15.3% to $145.2 million, compared to $125.9 million in the corresponding quarter of the previous fiscal year.
- The company experienced a year-over-year growth in total company comparable sales by 19.7%.
- Despite an 8.8% decrease in direct-to-consumer net sales from 2020, representing 52.1% of total net sales, the company demonstrated a robust overall sales performance.
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Full-Year Fiscal 2022 Highlights:
- For the full fiscal year 2022, J.Jill reported a substantial increase in total net sales, up by 37.1% to $585.2 million compared to the prior fiscal year.
- Total company comparable sales increased by 23.4% for the year.
- Direct-to-consumer net sales grew by 4.4% over 2020, representing 49.8% of total net sales.
- Despite a net loss of $28.1 million, which includes various financial charges and fair value adjustments, the company's performance marked a significant recovery compared to the loss of $139.4 million in fiscal 2020.
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Outlook for Fiscal 2022:
- J.Jill Inc. anticipates up to 10 net store closures during fiscal 2022.
- The company expects revenues to grow between 11% and 14% in the first quarter of fiscal 2022 compared to the same period in fiscal 2021.
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CEO's Statement:
- Claire Spofford, the president and CEO of J.Jill Inc., emphasized the company's recovery in fiscal 2021. She credited the improvement to a strengthened operating model focusing on gross margin improvement, disciplined inventory management, and full-price selling.
- The CEO expressed optimism about the future, highlighting a continued focus on driving profitable growth and introducing new customers to the brand and products.
In conclusion, J.Jill Inc.'s financial performance indicates a remarkable turnaround, with positive trends in sales and profitability. The company's strategic focus on operational efficiency and growth sets a positive tone for its outlook in fiscal 2022.
