J.Jill, along with several retailers seeing consumers reduce spending on apparel and other discretionary categories, posted top- and bottom-line declines during the second quarter.
Net income at the women’s specialty retailer came to $15.2 million in the quarter ended July 29, compared to $17.8 million in the second quarter of fiscal 2022.
Net Income per diluted share was $1.06, compared to $1.25 in the year-ago second quarter, including the impact of non-recurring items. Excluding the impact of those items, adjusted net Income per diluted share was $1.10, compared to $1.24 in the second quarter of fiscal 2022.
Adjusted earnings before interest, taxes, depreciation and amortization for the second quarter of fiscal 2023 was $34.5 million, compared to $35.6 million in the year-ago quarter.
Total net sales last quarter were down 2.9 percent to $155.7 million, compared to $160.3 million for the year-ago period. Comparable sales, which includes comparable store and direct-to-consumer sales, decreased by 1.3 percent.
Claire Spofford, president and chief executive officer of J.Jill Inc., said in her prepared statement Thursday, “The second quarter is an important period for J.Jill as we focus on delivering the novelty and styles our customer seeks for her late spring and summer wardrobes. Despite a slower start to the period given customer concerns with the evolving macro environment, we were pleased with how the quarter evolved with trends improving during the period. In addition, we continued to execute our disciplined operating model and are pleased with our ending inventory position. As we move into the second half of the fiscal year, we remain focused on delivering on our objectives and further strengthening our foundation to deliver long-term success.”
In other results, inventory at the end of the second quarter of fiscal 2023 decreased 16 percent to $45.7 million, compared to $54.4 million at the end of the second quarter of fiscal 2022.
For the third quarter of fiscal 2023, the company expects revenues to be down in the low-single digits compared to the third quarter of fiscal 2022, and for adjusted EBITDA to be in the range of $23 million and $25 million.
For fiscal 2023, the company now expects adjusted EBITDA dollars to be down in the low-single digits compared to fiscal 2022, including about a $2 million benefit from the 53rd week. Earlier this year, J.Jill stated that it expected adjusted EBITDA dollars to be down mid-single digits compared to fiscal 2022, including about a $2 million benefit from the 53rd week.