J.Jill reports mixed results for FY24, raises dividend

Published 19/03/2025, 11:54
J.Jill reports mixed results for FY24, raises dividend

QUINCY, Mass. - J.Jill, Inc. (NYSE:JILL), a national lifestyle brand for women’s apparel, announced mixed financial results for its fourth quarter and fiscal year ended February 1, 2025. The company reported a decrease in fourth-quarter net sales by 4.9% to $142.8 million and a marginal increase in FY24 net sales to $610.9 million, up 0.5% from the previous fiscal year. According to InvestingPro data, the company maintains impressive gross profit margins of 70.4%, though its stock has declined 27% over the past six months.

The brand’s gross margin for Q4 FY24 was 66.3%, a drop from 67.5% in the same period last year, while FY24 saw a slight decrease to 70.4% compared to 70.8% for FY24. Operating income also fell in Q4 FY24 to $5.1 million from $10.5 million in Q4 FY23, and annual operating income decreased to $75.7 million from $86.1 million. Despite these challenges, J.Jill maintains a strong financial position with a P/E ratio of 6.5x and healthy free cash flow yield, according to InvestingPro analysis, which indicates the stock is currently trading below its Fair Value.

Despite these challenges, J.Jill’s Board declared a cash dividend increase of 14.3% to $0.08 per share, payable on April 16, 2025, to stockholders of record as of April 2, 2025. This reflects an annualized dividend rate of $0.32 per common share.

President and CEO Claire Spofford commented on the company’s resilience amidst a dynamic macro environment and its ability to generate strong cash flow, supporting the dividend increase and ongoing investments. She also mentioned the slow start to Q1 FY25 and continued customer price sensitivity but expressed confidence in the brand’s long-term success strategy.

For Q4 FY24, J.Jill opened five new stores, bringing the total count to 252. The company also highlighted the implementation of a new Order Management System, a pipeline of new stores, and new leadership with Mary Ellen Coyne joining later in the spring.

Looking ahead, J.Jill expects net sales for Q1 FY25 to decline 1% to 4% compared to the first quarter of fiscal 2024, with comparable sales expected to decrease 2% to 5%. The full-year outlook for FY25 is more positive, with net sales anticipated to increase by 1% to 3% and comparable sales ranging from flat to up 2%. For deeper insights into J.Jill’s valuation and growth prospects, including 13 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find detailed Pro Research Reports covering what really matters for smarter investment decisions.

The company also announced a share repurchase program authorized on December 6, 2024, for up to $25.0 million of its common stock over the next two years, with $24.5 million remaining under this authorization after repurchasing 19,831 shares in Q4 FY24.

This article is based on a press release statement from J.Jill, Inc.

In other recent news, J.Jill, Inc. has announced the appointment of Mary Ellen Coyne as its new Chief Executive Officer and President, effective May 1, 2025. Coyne will also join the company’s Board of Directors, succeeding Claire Spofford, who is set to retire on April 30. Coyne brings over thirty years of retail executive experience, including her successful tenure as CEO of J.McLaughlin, where she oversaw substantial growth and expansion. Her career also includes significant roles at Ralph Lauren, where she served as Chief Merchandising Officer of Women’s and Children’s. J.Jill’s Board Chairman, Michael Rahamim, expressed confidence in Coyne’s ability to lead the company through future growth and innovation. Coyne has expressed her excitement to join J.Jill and her commitment to building on the brand’s strong heritage. These developments are based on a press release statement from J.Jill, Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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