J.Jill (JILL) 11 Dec 242025 Q3 Earnings call transcript

Hello, and welcome to the J.Jill Inc. Q3 2024 Earnings Call.

Before we begin, I need to remind you that certain comments made during these remarks may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.

Those risks and uncertainties are described in the press release and J.Jill's SEC filings. on J.Jill are obligation does these statements. made XX, of to statements forward-looking and XXXX, not forward-looking this as recording December update The undertake any

measures to the showing versus release non-GAAP available or Finally, issued reconciliation is GAAP certain measures the may remarks. A refer non-GAAP J.Jill financial in during financial December these schedule XXXX. adjusted press XX,

website obtain copy at one not do press today's you page of of [Operator have Relations jjill.com. a the visiting Instructions] by you If the Investor may release,

will now call the please J.Jill turn President and over ahead. Spofford, I Inc. to Chief go of Claire Executive Officer Claire,

you, Thank afternoon. us. everyone, Good for joining

proud years Before that X the want organizations, a announcement stronger, I leading retailer to of identify company a smooth decided we process and address decades seamless my into what extremely has to I new sustainable successor, for I retirement transforming a J.Jill team our the growth. have results, of to thorough has The our more I'm discuss transition. ensuring committed take my search chapter. a leading a X next retail this to begun am time and after Board quarterly fully accomplished incredible agile nearly right moment and for positioned together, planned is After year.

focus while recently, and unwavering on our the enhance proposition price rigorous particularly brand, growth. our strengthen a of our with implemented refocused I'm our discipline operational modernize foundation earning prioritize customers. way all selling our We how of proud capabilities, business. back and full back, organization we've of taken serving Looking we strengthened new this the More to steps the into omnichannel mindset value maintaining to

the next unlocking that store of on framework we've opportunities discipline company the capitalizing omnichannel This enters will are it and serve robust operational its new growth ahead, growth stage and be The on next chapter. well focused will capabilities. established as strategic including

consultant growth brings further that enhance a also are fresh the to business' plans. engaging We perspective

foundation step repurchase to In the program. and addition, excited share we confident are strong the with are Board generation strong the that a model, announce recognition lie growth in strategy has record opportunities business new in authorized track proven and as This as authorization conviction ahead. cash our of we've built well of the the in a reflects TSR forward significant our future that

Now highlights me from results. third review turn to our quarter let

our managed promotional executing in reflective model. of For focused the quarter, quarter focus, margin expenses expectations results delivered tightly our initiatives. another remain third the of operating in with Through of actions healthy continuing our our and while to we we with operating principles. performance, this disciplined were on delivered teams long-term invest line as strength We our

on events pressure full particularly continued our to consumer selling, to engagement by distraction were to core due some there world and and franchises encouraged While price color palettes. from the around customers, rich fall continue we we be draw

focused helped We our channels, offset traffic to the during assortments, saw retail trends direct partially relevant conversion both and supported our by which period. in strong

channel, impacted with direct, overall that we've to continued a the we where customer more Southeast, across our hurricanes customers from retail stores very outperform in relatively spend. largely price-sensitive disruption Excluding direct the remain see of choiceful a saw result as their

overall down in per cohort file. customer While results. per quarter, growth, orders which period, spend our customer our We our delivered was best in the customer saw customer the for growth file supported slightly the outperforming

we program, ] to private loyalty from are a by you will this the the credit in and loyalty label quarter. Your [ recall, similarly we ran As increase card received view applications campaign we encouraged our we Love

and social such with managing engagement events with as continuing are our we platforms. actively to the discipline are given customers media marketing stores we environment, through While our drive spend this current across

be addition ] our strong [ we into X Your and marketing markets that to will retail geographically yielded as tests results in campaign, In conducted we scaled loyalty focused Love move XXXX.

Elliot Our leverage that to One Staples, trend-right advice outfitting. J.Jill offering Design, Instagram of the our and Minute, seen versatility styling product highlights versatile assortment strong product suggestions on our series, and Head how to of achieve No especially look tips Limits has supports for with engagement fun

quarter we we to In and proposition delivering addition continue instrumental iconic series, areas to wider bottoms in was X which customers. of in campaign modernizing this to appeal brand results our presentation modernize our and range drove products, the of to this of value for and the us styling the also engagement as in and launched in strong brand quarter, focus a

provided campaign, discussed on favorite. our this last and we products, the bottoms that pants strength customer assortment style helped to ongoing dresses new to ponte core this took offset call. softness Through we one The also in ways in our our of quarter

the year, a we've towards gravitate While of separate. see second to the dresses smaller in are trend a continued of our part half customers assortment in

pleased as And a seasonal to into heart of the supported period, sweaters performance slower more in by we products and and while moved we saw we see the promotions pick like to season, were early in up our outerwear start more the colder focused these weather. fall areas

and service progress efficient new some POS our our continued growth transaction customer systems realized also trends we in modernizing quarter, omnichannel for and stores promising the our infrastructure in in system. an and During our

are that that order about online system be XXXX. come by We in new management excited will will capabilities the new a enabled

relocation fleet closed have X we in store to we with X of the our addition, stores the In new opening and strengthen had of that QX. reopening continued for store

expectations quarter our The our base to omnichannel strong customer model. have make we third capitalize on our reflect progress operating the in to are our loyal opportunities our line we of to model. strengthening with the in strength continue summary, and continuing and results In were

engage holiday accessories are our flowing while As we not the and year, we with to newness we holidays, with this the seen return regularly. continuing of that festive look full-price yet have and earlier robust to the consumer customer saw we sweaters

objectives calendar, to selling will that holiday made also sets changes quarter. shortened margin and our for believe the the timing have we our the sales of floor With support we

believe our call the growth. I executing phase my perspectives Before will of to year X continued organization, bringing passion on want past teams. the established, I Throughout an work with position support lead honor discipline the to acknowledge years, been they're over has we've the for this to truly and I of fresh our great in, of landscape. this strategic have they combined with and framework and next J.Jill the stay operational in discipline success that while over Mark, It focused indeed and this with consumer turn continued to evolving navigating

over I call will turn Mark. the now to

Thank you, Claire.

alongside even I these third model, J.Jill performance. the speak an results past strengthened I say disciplined to of years. We in continues team environment off, business it X as for I First operating which know yield been somewhat to the and a consumer the challenging work has amidst honor foundation quarter entire instilled our a you when reflected

comparisons the discussed call, into QX business year-over-year progressed our were we the easier account the period. well entered we the expectations QX took as as As we as on we through seeing as trends in

selling not yet we full our seen the As to Claire have strong operating maintained while discussed, price have year, saw discipline. we we earlier this return

flat gross year. promotions inventories the where on quarter, last basis quarter the even needed a targeted margin taking with healthy additional delivered of to normalized a to XX.X%, we and end During after markdowns

We where or project, in also protecting the marketing $XX.X while of the remained possible strategic and controllables, XX.X% OMS on EBITDA adjusted focused million reducing for expenses sales. the investments of delivering quarter

positive activity sales more as and in in performance financial quarter decline comp channel. Total storm from quarter decreased third as last impact an softer X.X% quarter $XXX,XXX store was third for review by the to I'll a comparable direct compared driven incremental direct detail. the approximate selling Now The full in sales price on well by year. company negative X.X%

comp company impact quarter. the of for negative X.X% the Excluding incremental sales were storms, total

for were was comp, Total This about shift to calendar QX $XXX mentioned. million up quarter which benefit million, compared QX X.X% to the performance due including result XXXX, of a the mostly impact versus XXXX. just the lower offset by the company $X negative reported of storms was sales

driven QX storm sales the shift, by for to primarily compared the Store up QX XXXX, by offset were impact. calendar X.X%

we relieved to and accounted of Asheville, close We one an with associates for. did store reopening safe damage had is to Village have the which all storms, uncertain that located. are Regarding in Center first, due our store date and the pleased and extensive very to the North in are it Carolina that to Biltmore

quarter offset the and total sales calendar of of were rates as were storms sales in quarter shift XX% price third Compared by up of about period. XXXX, Direct full direct in of to the a during return the selling the benefit partially the fiscal X.X% the quarter. softer sales the improving were impact and percentage as

$XXX down XX additional and XXXX. million, to quarter. driven gross XX.X%, down about price $XXX,XXX basis versus elevated full QX of QX company total in XXXX, elevated QX levels freight points promotion, ocean compared about profit the markdowns was costs gross by was margin QX

reroute the we the potential the away we some to previously strike have to from East goods West shipping we delays are took early goods rerouting the measures fall. port this holiday discussed, of shipping As in of offset to to advance evasive Coast related and Red lanes Coast Sea,

QX. that realized with from resulted our sell as floor be and goods sets goods holiday in elevated we costs late freight associated these This fall in summer carrying the will

is will prior now stabilized fiscal freight Importantly, to have are while sold spring contract XXXX, uncertainty quarter expiring shipping rates extension be in ocean still during related line port year more and for there QX January Coast East of that goods the XXXX. fourth overall in in with

$XX SG&A partially wage incremental $XX all approximately inflation, expenses by million OMS and project, The associated about driven offset the with quarter by in which marketing year. the $XXX,XXX to increase last primarily for favorable incentive. of expense were management was compared were million

income, million quarter Adjusted to $XX.X adjusted EBITDA for a EBITDA financial net million of today's GAAP press comparable refer XXXX. in the compared measure. to to reconciliation $XX.X the release most QX was Please in

Turning to cash flow.

of borrowings generated million ending quarter, of about cash cash about against ABL. X the $XX resulting million the we For operations, in from $XX with

Looking at inventory.

expect quarter we to be shipping shift year delays calls, to ship inventories to the X reported calendar early Red week offset this lanes of rerouting prior from strategy related to the and on goods the due away mentioned Sea. to timing up As approximately

about up reported end normalized a of quarter. basis, were third end were X% As total quarter at year. flat compared the of quarter, a third On about last end the inventories the to inventories to result,

to million Capital on in good expenditures compared XXXX. $X.X fiscal continues million path last OMS the quarter were were focused project, which $X.X progress implementation make year. to Investments technology the and to the for on stores

X Springs. of the in West extensive The a end Virginia North Carolina of mentioned, with Marietta, Lynnfield, new in as Asheville, the quarter, quarter opening X Atlanta and end in X exited X Beach The count, single-store Massachusetts we vibrant quarter the relocation store opened Virginia a store to reentry market, store to respect of center Georgia stores total XXX ago. I we X due store years West October store and as damage, of marked for opening in With opened stores new the into this in ended market closed a reopening during August We Beach, stores. the hurricane at the of the of in in Cob. closed Colorado second at a consisting and the Atlanta and seventh first

remerchandising ago at following we years the in exited center single-store the reentered a Springs market we the Lifestyle and Colorado also of end the October, Promenade Shops redevelopment Center. X same of And

to excited expanding are the fleet. We continue

an capture cash-on-cash healthy and financial to grow results new just payback deliver and over awareness X healthy under opportunity customers, stores XX%. returns periods New of years represent with

continue the XX on for and working year up stores plans open next to our X actively new opportunity are in to years. next to We see net

to Turning outlook. now our

strong saw have have continue with our we not seen this we though earlier discipline the yet return we year, As of controllables. manage and we to the operate mentioned, customer full-price

our we remainder the trend slightly of such, outlook throughout As tightening with are continues the year. the this assumption

year. million sales to compared XX-week to QX be compared in XXXX we prior to $XXX.X For X% the fourth expect down X% the to quarter,

We negatively million with about the to related calendar $X QX revenue and by expect $X million extra year. shift to in the week another QX impacted associated be last

growth, which This just reflects I year the sales sales from impact prior comparable trends week, XXrd of increase period. comparison comparable to continuation total the X% the easier to decline to against compared expect the excludes period, to X% the year expectation mentioned prior We the X.X%. which saw

in freight QX, adjusted seen EBITDA I to the holiday costs in million. as a and promotion week through calendar the margin pricing continuing expect and We associated of and largely products This the inventory $XX which that last than in week be actions a QX shift, year to the impact earlier, reflects in in season guidance of pressure with full comparison. greater markdown expected necessary that by $XX pulls the this price versus range moving our elevated driven commitment gross reviewed million year to included our

total X% gross be For comparable to for to expect full X%, we up total flat revenue about to to year, company be margin sales down to and plus modestly. X% be

in performance revenue Given a of EBITDA prior and QX, narrowed range million $XXX compared to year-over-year operating EBITDA X% This million year year-to-date sales $X incorporates to for as well and the to impact guidance related million and reflecting expenses year our approximately of adjusted expectations EBITDA $X to compared in the $X of to million to of we from in decline our outlook as project. and week our adjusted adjusted $XXX the million X%. XXrd for have incremental OMS million is $XXX about fiscal XXXX loss the $XXX negative of million,

and fiscal X% revenue XXXX and the investment the to to Excluding adjusted in be year. of in the week range to the the X% impact be expense we EBITDA of the project, X% to operating compared to X% OMS down expect up prior XXrd

expect XXXX. new respect expenditures, net count, temporary And X about CapEx for new open deliver spend stores the still XXXX, capital we in to we in X year excluding for X fourth fiscal close to $XX fiscal reported closure to store total up Regarding stores stores with during million expect Asheville. to quarter, and to

model In Claire discipline. mentioned, executing the operating closing, remain on operating are in and business as we focused confident of with the and

year year yield consecutive while this for EBITDA will fourth in generating flow. adjusted cash expectations teens of free the significant the margin Our high

paying are expect we strategies. total debt to return the and look As to including year, capital deliver in business, allocation down beyond this continue our and operating investing driving on committed we to model priorities, the shareholder

have sheet significantly demonstrating driving and commitment first initiated strengthened $XX outstanding total this shareholder to million year, the returns. approximately We principal balance our program, dividend debt reducing of our levels to ordinary

have strategy, of repurchase authorization The very of first the for share Board's in next $XX we announced Today, are X going pleased in the XXXX. authorization step the a one program, that cash price manner, good opportunistic. public and to is to since cash million funded factors, be depend free measured to The any on and flow. will repurchases expected existing we plan many and future years be timing, through and amount but is

additional In further addition, in our we resources, are growth to in to as Claire looking business. of the team forward reviewed, plans the support bringing advancing

unlocking believe continue growth lie that past that We the store capabilities we in new have with to in years. invested X ahead the opportunities and new these omnichannel

for growth this untapped the forward recognize position we great to have also trajectory look brand in J.Jill advancing We to our potential and long-term and plans success.

for will you. back Thank I to hand operator the now it questions.

line of from question first comes Janine the Stichter Instructions] Your [Operator with BTIG.

in the tough seen trends a of to the maybe hurricane. quarter. August cadence are a environment. curious you I quarter And is elaborate responding? in lulls? Maybe off solid what and got around on the we taking start. I what the those in consumers consumer start to of change terms out, just the the on guess how then seeing just peak slow breather know of kind behavior. Or Congrats in seeing notwithstanding kind more the you've a periods during or you're shopping of break consumer any still Are seeing a

Thanks, Janine.

got the we compare, as the our quarter. some we a as I And nice well had put of month was for gaining of So yes, We quarter colder sort consumers saw events hurricane also as sequential deeper to quarter. pleased little We the we behind us. half improvement bit those but we was The see an were into move traction soft of a some into as August to traction. easier engage efforts nice mentioned, as some of latter weather us.

was the sequential over basis. improvement quarter a So a on it year-over-year

full-price to coming earlier in not in a mixed. think, about we mentioned year. behavior way consumer as the as in his continue back Mark, see script the We the be saw consumer I robust

The more quarter bit inventory right in mixed bit price also it and the mixed in exited to a we sensitive bit a the little little by so we a is retail continues top traded our the and more channel. And markdowns promotions, quarter. little business direct position. focused bit little be through into But consumer supporting objectives supported that consumer a than the achieved and our the ensuring line and

be seeing change broader the And just And promotional that gravitating part Have any environment. there? you far consumer you're the of maybe Great. might promotion? as then towards what as seen

much we're retail. Black beginning Friday I promotion in very as an a we performance terribly okay we in We of over little that apparel bit, quarter, period. But to as did the had be saw across Yes. a And but promotional board. QX just quarter mean time the some women's obviously not forward our tends pull fourth promotional others the doing. sort of

next Carden The Dylan is with from Blair. William question

weather sort bit mentioned of this have season. Do being been think a but you some you earnings others headwind, little much not a nearly talking as as Curious, that as about the of you And meaningful easier that or delay I a in any yes. if ramp, comparisons guess cool there's sequential a -- just in maybe capacity? hit was some weather of

colder. September. we definitely in little mentioned as It August. Dylan. Those of part sort we and saw surgically of them did season. got season, help -- in on colder. up catching the the fall beginning quarter did sweaters we the think softness question, the of beginning we outerwear improved, those into then as And a headwind from to we say a at our bit moving the kind in September bit had going of up Great later promote I really core we I programs a part what the to of definitely early were pick was as But Yes. little was coming into it into also weather was some but fall categories. got got of support of of

to Makes there what ramp kind business for Or sense. get guide those comparisons assumed the you're is And given in Mark, doing fourth is of the that is just now? assume an the it safe quarter easier? comp

that encompass the in where quarter, we're outcomes Thanks guide. for kind the we assumes at like potential always of range reasonable a of Dylan. to -- Yes, and trending feel guide the try question, the It seeing and business always what in we're forward. that's given a

And for you full-price business sort you like points, then of is lost the customer come only finally haven't that -- of the year. saw price the beginning just that have seen the Or promotional customer? back me, at levels? in comments that customer engaging now Is the to that of more lower you the sort

not it's consumer mean, I of a -- binary about Dylan, behaviors. thing, a It's Yes. mix sort of it's

said, As I direct bit tends little a customer our more to price be sensitive.

markdown we in direct. in that did see higher quarter penetration So

we have limited a customer, see promo you the in business. as margin But price and full robust full with can still price in pretty performance the

it's full behavior penetration some we we an and in And all saw May as into incredibly June not we price and an super was just So had change high. It's thing. summer. moved nothing the or strong then

So come seen completely back. that we June haven't May, profile

Tarlowe Corey question from Jefferies. with The next comes

mentioned a been you've understanding us comments, specifically you maybe file generally that has how bit out? had consumer Could customer little trends. trends Claire, and file the little us call your in seen brand for to a your something just with that better the more give bit any can unpack you within interacting that your of think about I you

Sure.

of business. that be our with overall customer the the strong file tracked slightly, outperformed very consistently cohort quarter. line fairly It best to and continued the the contracted customer top but So in

when I -- again, to are segments hard about it's So behaving think it's different the customer are speak generically that differently. there

that in if off bit see a surprising the was the think I channels and contract little quarter. it not you'd in customer traffic So both off is that's

is opportunity, I this like know as what plans curious, in Got imagine of point. that And the terms any a it. opening openings? I'm a for might look number coming multiyear think about about thought I then, of you've view at for into would store there 'XX to stores, the are Mark, plan you XXXX but talked

Corey. Yes,

have We store chasing potential robust that a of pipeline voids very we're down.

this ramp-up last certainly from store all, from X of for net pleased updated X openings our we've a year. X of a in we're pipeline in we in X guidance we years and been store with So last our -- the provided That QX. first year where closures and ramp-up basically expecting represents

continue we So expect higher. ramp to would that to

year mentioned over X-year time We the XX a opportunity we've mentioned XX-store XX medium-term or over X-ish to and the more frame. frame, time

I XX and XX year, to say net the of next So would in that ramp years. couple X this we'll into

from The with Jonna is next TD Cowen. question Kim

the look curious your potential then on about second And question more as And you dynamic spend about sensitive. Has price spend. you have comment through we are initiatives? marketing that marketing to being as sort been Just going How trend forward? on are prior? that thinking just consumers changes any learn strategies and a direct change sort of you to 'XX this your of what to continue marketing

this promotional model, historically, were largely today in we very the a sort markdown of would much of consumer more someone for more on lot buy customer we promo, who Thanks those focused more before The a much business instituted the price -- days. direct and Great. sort consumer was full question. so and than direct

Today, than be bit we more sensitive a that customer. still customer price retail see little our

said, margin a That think the purchasing promos I the speaking, healthy store full and is more overall still going quarter. to might customer of of the price in on customer purpose options. to of direct honestly, the the be a and enticed logically, with again, would is little business business the off-price retail margin very bit basis I and the the We're focused. with profile very the relative profile point very,

talked when about are 'XX do spend, detail. we on in in QX the March. we certainly But haven't get We'll to And investing then we marketing. to that call behind with regard marketing any

this investing into about and build to awareness. We the to potential are bring We customers new for brand and business customers the brand introducing new to this feel great it.

So the some of see in the maintain but to uncertainty have we're we discipline macro right that the investing, are also and sensitivity of from given environment to the we level that trying continued consumer.

Your Instructions] Street comes with question Capital [Operator next Markets. Meyers from Ryan Lake

for one you of talk the Wondering Just people. me. about be obviously if bit top potential as tariff can little the that to a seems impact a list of concerns for

sort Just aware maybe be chain, supply should highlight we of the any or anything there? of impact

Yes, one. take question. Ryan, thanks I'll for the that

So real-time finished China obviously, those us, tariffs. of of goods is around is is in below talked with us China, production. news of good flowing information there's lot there a been one to that which that respect for out X% about potential tariffs, for have terms The

So us. that's items. Mexico, issue or We not so do an of for really some don't much from Canada those really importing

be understood there's tariffs we're around again, that we're lot what of still the of aware be But the will better information general very implemented, much and to amounts, timing, et cetera. which a the about thinking detailed hearing, But them. actually

it's of impacts We that lands. respect to this all with on where the to that talking new and price level our But still some meaningful company. we stuff country require absorption sort some way negotiations are of need given be and about of some of would level to not see administration, of all products it's level on the tariffs yet comment within too tracking reviews them. the vendors, obviously would early some and with they're levels The at

Marni Shapiro Retail next with The comes The question from Tracker.

improvement to And even is an hasn't Or I'm Claire. those where higher was to that it that did just It's that full you and you to? context, usual? just then June, in saw robust levels full back curious, lines, to curious if than selling know I'm you back the so within selling returned. June? off along May, Congratulations, said do exciting. fun. get wasn't hope price May you But something I if I you're expect price just in see

Yes. Great question. Thank you.

being about May having our talk we So much. the without all to our but holiday June as time promote and holiday,

unusually strong was June it So an year. May this and

penetration of And profile we we was the was full our healthy. did of price some full as very And beginning did the on trend, the the as call. we very, strong, about and just moved we QX. fall see talked relatively overall into in business that have strengthening And pressure over so think August quarter see last July we price see of We season, and I robust at seen right? so not the the did as

could hit That It looked just different colors the and the sold out in gravitating I I felt minutes. price she front was I follow novelty? makes you Is very just to the different. like on, in then right And the she's sense. rich beautiful. and guess, Because very looking towards when store fashion Okay. up buy? looked holiday, I it full XX and or were mean the selling -- what sweater very that snowflake that the

so, of on does an towards looks still about kind basis? thinking she's gravitating you if that like it if curious the -- I'm are So balance what fashion. ongoing And

long tend on and Actually, bottoms, assortment. was -- it Thank and saw We traction, shot which it, to iconic QX, a our of marketing more Yes. question. The the our spotlight the less a it ponte some presented it, very is part mentioned core campaign. line which in I we time. be some it, we business. our fashion structured way was we've way created a I strengths strength Great refreshed of we pants mentioned had super us. way we and nice you. to that for the version in bottoms really It around central for styled the of iconic in the the campaign our

of tends snowflakes. for level snowflake, quarter our customer a she The fashion us. fourth what be looks and know traditional for loves and the assortment we so to fairly

So that snowflake out quickly sweater of that that. you saw sell is reflective

continue guess to to so the terms in the creating seasonal in of kind very that thing fashion from and a that balance and the mix that trends is be but our the appropriately. I And consumer it's point we seasonality of core really and understanding my of on right focused programs, reflect

joining. Q&A conference call. you will for Thank This session our conclude concludes and today's

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