U.S. Retailer J. Jill Reports 29.4% Net Sales Growth in Third Quarter of FY21
Gross profit for the reported quarter was $ 104.5 million, up from $ 69 million in the third quarter of fiscal 2020, while gross margin reached 68.9%, from 58.9% in the third quarter of fiscal year 2020. This year-over-year gross margin This increase is due to strong full-price sales and reduced promotions, which more than offset around 200 basis points in freight costs due to supply chain disruption.
Operating income for the quarter reached $ 19 million compared to a loss of $ 24.1 million in the third quarter of fiscal 2020 while net income reached $ 11.2 million compared to a net loss of 23.2 million during the same period of fiscal 2020. Net earnings per diluted share was $ 0.79 compared to a net loss of $ 2.52 in the third quarter of fiscal 2020, including the impact non-recurring items.
J. Jill Inc, a leading omnichannel retailer, reported a 29.4% increase in net sales in the third quarter of fiscal 2021. Sales reached $ 151.7 million from $ 117.2 million. dollars in the corresponding quarter of last year. Total comparable sales increased to 42.2 percent, which includes both same-store and direct-to-consumer sales.
“We are satisfied with our performance in the third quarter and are encouraged by the continued customer response to our premium product. These results reflect our continued recovery as we made progress in implementing our strategic initiatives, which resulted in strong gross margin expansion and a significant year-over-year improvement in Adjusted EBITDA. Our focus on selling at full price, improving inventory management and the frequent flow of inspired products have further strengthened our operating model. Claire Spofford, President and CEO of J. Jill, said in a press release.
The company ended the third quarter of fiscal 2021 with $ 17.5 million in cash and $ 35.6 million in full availability under its revolving credit agreement.
For the fourth quarter of fiscal 2021, the company expects revenue growth compared to the fourth quarter of fiscal 2020. It also expects strong growth in adjusted EBITDA for the fourth quarter of fiscal year 2021 compared to the previous year, driven by full-price sales and a reduction in promotions that will more than offset the expected additional freight pressures and costs associated with increased opening hours of stores and shipping costs.
The company now expects total capital spending in fiscal 2021 to be around $ 6 million and plans to close around 20 stores in fiscal 2021.
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