J.Jill reports drop in Q3 sales, profit

US womenswear retailer J.Jill has reported a drop in profit and sales in the third quarter of the year.

In the three months to October 29, its net income fell to 8.9 million dollars from 11.2 million dollars a year earlier.

Its earnings adjusted for non-recurring costs came in at 0.77 dollars per share, ahead of expectations.

“We delivered better than expected third quarter earnings performance supported by our disciplined approach to flowing newness, full price selling, and inventory and expense management,” president and CEO Claire Spofford told investors.

Sales top estimates

Third-quarter net sales at J.Jill fell by 1 percent to 150.2 million dollars. The company was expecting as much as a 3 percent drop.

Meanwhile, comparable sales including same-store and direct to consumer sales were down 1.2 percent.

Spofford said: “These results reflect our ability to navigate within a challenging consumer environment as well as the increased planned strategic investments to support our growth strategies, including the August launch of our inclusive sizing initiative and Welcome Everybody campaign.”

The company did not close or open any stores in the third quarter, remaining with 247.

For the fourth quarter, J.Jill expects revenues to be flat to down 3 percent year-on-year, while it expects adjusted EBITDA to be in the range of 9 million dollars and 11 million dollars.

“As we look ahead to the end of the fiscal year, we continue to take a cautious approach to our outlook,” Spofford said.

“That said, we remain focused on executing against our operating model which has delivered strong financial results year to date.”