On Wednesday, shares of retailer J. Jill Inc. (NYSE:JILL) are climbing, up over 11.5% to $12.59 per share in afternoon trading after the company reported strong first-quarter earnings before the bell.
J. Jill reported adjusted earnings of 24 cents per share, surpassing the Zacks Consensus Estimate of 18 cents per share (this number excludes 6 cents from non-recurring items). Total net sales increased 12.5% to $166.1%, also beating our consensus estimate. Total company comparable sales, which include comparable store sales and direct-to-consumer comparable sales, increased 9.9%; direct-to-consumer net sales represented 42.6% of J. Jill’s total net sales.
Gross profit increased to $115.6 million from $101.5 million in the first quarter of 2016. Adjusted EBITDA increased 19.7% to $31 million, up from $25.9 million in the prior year period.
"Our team is hyper-focused on our customer – who she is, what she wants, and what is relevant to her. With this always in mind, we will continue to delight her with the product assortment and omni-channel shopping experience that brings her to J. Jill and builds the great loyalty she has with our brand. We are confident we have the right formula and approach in place to continue to drive these consistent positive results and to deliver against our goals for 2017 and beyond,” said CEO Paula Bennett.
Looking ahead, J. Jill expects total comparable sales to increase in the high single digits for the second quarter for 2017. Adjusted earnings are expected in the range of 27 cents and 29 cents per share.
J. Jill is a popular women’s retailer and upscale mall staple with a booming catalog business. Back in March, shares of the company began trading on the New York Stock Exchange at $13 per share, but since then, its stock is fallen nearly 11%. Many wondered why a retailer would IPO during such a volatile time for the broader apparel industry, but its unique business model makes them stand out among others (also read: J. Jill IPOs Despite Brutal Retail Industry).
Currently, JILL is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’
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