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It seems that Jegil Inc. knows what fashion the older female consumer wants.
In general: A customer with higher incomes and less inflation sensitivity, combined with marquee fashion, helped J.Jill boost second-quarter sales.
Strong first-quarter momentum carried over into Q2, with customers continuing to buy higher AUR novelty fashion and little resistance to higher prices.
“We saw a strong start to the quarter on Mother’s Day and heard from our store partners that she is generally stocking up early for her seasonal wardrobe and shopping ahead of a summer full of events and travel,” CEO Claire Spofford told analysts during a conference call. Thursday.
Unlike other chains that saw a drop in mid-June, J-Gill experienced a slowdown in sales after Mother’s Day, Spofford said.
“As the climate changes and we continue to inject innovation, we will stay with her and our field organization on her behavior and purchase intent,” Spofford said. “Based on what we’ve heard, we’re feeling confident that she’ll be back to revamp her fall wardrobe.”
The start of the third quarter saw the company working to grow its customer base with a new “Welcome” campaign that focused on size inclusion. While the chain has always offered plus sizes, they were in a separate section in stores, and some options were only available online. The initiative brought some online-only size offerings to stores, though sizes 3X-4X (26-28) are still only available online. In addition to merging the women’s and women’s collections, pricing has also been adjusted so customers are paying the same for the item regardless of size.
Jegil Inc. has closed six doors this year and plans to close 10 to 14 locations, including the two stores opening in the fourth quarter.
Net sales Net sales for the three months ended July 30 rose 1 percent to $160.3 million from $159.2 million. Comparable sales increased 0.8 percent, led by sales in the store channel.
Store sales increased 2 percent with higher AUR and promotions decreased. Direct sales, 46 percent of total sales, were down 0.7 percent.
Inventories rose 12.2 percent in the quarter after Chief Financial Officer Mark Webb said he would limit the use of air cargo for a week or two.
Gross margin for the quarter was 70.1 percent, up 150 basis points from a year ago, as strategic price increases and prudent promotions offset product price inflation and higher freight charges last year, he said.
Net sales for the six months rose 10 percent to $317.4 million from $288.3 million.
Revenues Net income was $17.8 million, or $1.25 a diluted share, compared to a net loss of $24.6 million, or $1.98 a share, in the prior quarter.
For the third quarter, J.Jill reported a flat 3% decline in revenues. Webb said the company reaffirmed full-year expectations for annual sales to grow “modestly.”
For the six months, net income was $32.3 million, or $2.27 a diluted share, compared to a net loss of $43 million, or $3.88 a share, in the same period last year.
Take the CEO. “We want every woman to find the perfect fit in products that are unique to her, confident that J Jill has what she’s looking for in beautiful styles and creations,” said Spofford.
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