Overview

* J.Jill Q2 FY25 sales down 0.8% to $154 mln, beating estimates

* Adjusted EPS for Q2 FY25 beats expectations at $0.81

* Gross margin falls to 68.4% from 70.5% in prior year

* Co closes two stores in Q2, total store count at 247

Outlook

* Company expects Q3 FY25 net sales flat to down low-single digits

* J.Jill anticipates Q3 FY25 comparable sales down low to mid-single digits

* Company projects Q3 FY25 adjusted EBITDA between $18 mln and $22 mln

* J.Jill sees FY25 capital expenditures of $20 mln to $25 mln

Result Drivers

* CUSTOMER TRAFFIC - Sequential improvement in sales trends attributed to better customer traffic and positive response to summer sales, per CEO Mary Ellen Coyne

* INVENTORY MANAGEMENT - Actions taken to align inventories with current trends, aiding in navigating a dynamic environment

* STRATEGIC FOCUS - Emphasis on evolving product assortment and enhancing customer journey to expand customer base, according to CEO Coyne

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $153.99 $151.30

mln mln (5

Analysts

)

Q2 Beat $0.81 $0.77 (4

Adjusted Analysts

EPS )

Q2 $25.59

Adjusted mln

EBITDA

Q2 16.6%

Adjusted

EBITDA

Margin

Q2 Gross $105.36

Profit mln

Q2 $16.78

Operatin mln

g Income

Q2 $14.55

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

* Wall Street's median 12-month price target for JJill Inc ( JILL ) is $19.50, about 13.5% above its September 2 closing price of $16.87

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)