J Jill 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE	Approved by:	Olga L. Conley
		Chief Financial Officer
		(617) 376-4300
		URL: http://www.jjill.com
	Investor Relations:	Chad Jacobs
		Integrated Corporate Relations, Inc.
		(203) 222-9013

THE J. JILL GROUP REPORTS THIRD QUARTER RESULTS

Quincy, MA, November 3, 2004 – The J. Jill Group, Inc. (Nasdaq: JILL) today reported financial results for the third quarter ended September 25, 2004.  Net sales for the third quarter increased by 15.3% to $94.9 million from $82.3 million reported in the prior year.  The company generated an operating loss for the quarter totaling $4.3 million compared to a loss of $4.7 million in the prior year.  The company posted a net loss for the quarter of $2.6 million or $0.13 per share versus a net loss of $2.9 million or $0.15 per share in the third quarter of the previous year.

Regarding third quarter sales productivity, retail segment net sales per weighted average square foot increased by 2% while direct segment net sales per 1,000 square inches circulated increased by 34% as compared to last year.  Comparable store sales for stores open at least one full fiscal year increased by 4.7% in the third quarter of 2004 as compared to the third quarter of 2003.

For the nine months ended September 25, 2004, the company recorded net sales of $315.4 million compared to $262.1 million in the prior year.  Operating income for the nine-month period was $10.9 million or 3.5% of net sales compared to $7.3 million or 2.8% of net sales in the prior year.  Net income for the nine months was $6.1 million or $0.30 per diluted share versus $4.0 million or $0.20 per diluted share in the previous year.

Gordon R. Cooke, President and Chief Executive Officer, commented, “The third quarter of fiscal 2004 was a challenging quarter for The J. Jill Group.  Unusually low levels of clearance inventory in our retail segment, lower than expected sales of fall season full-price merchandise in our direct segment and increased spending in support of retail advertising and in-store visual presentation, our merchandising and product development initiative and our Sarbanes-Oxley compliance efforts, resulted in disappointing financial results for the quarter.  That said, we continue to be encouraged by the strong customer response to our fall season full-price merchandise offerings in our retail segment.  Notably, as the quarter has evolved from the traditional summer clearance months of July and August into the fall full-price environment post-Labor Day our total retail top-line performance has improved.  It is also important to note that overall comparable store inventory levels at October month-end were approximately 20% lower than last year with our full-price comparable store inventory up by more than 10% over last year’s levels.  At this point we feel our retail inventory levels are sufficient to support the upcoming holiday season.  Regarding our direct business, we are somewhat encouraged that customer response to our Holiday I catalog mailed in October has been stronger than the response we experienced with our third quarter catalogs.”

Looking forward, the company is currently targeting fourth quarter net sales to be between $123.0 and $127.0 million, with diluted earnings per share in the range of $0.20 to $0.25.  These sales and earnings targets are not guarantees of actual performance.  Historically, J. Jill’s actual performance has deviated, often materially, from its targets.  These targets also do not include the potential of any business risks, opportunities or developments that may occur after November 3, 2004.  J. Jill does not expect to report on its financial performance during the quarter, or to comment on it to analysts or investors, until after the quarter has ended.

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“As previously indicated, we have always considered fiscal 2004 to be a transitional year during which we are making significant investments to improve our merchandising and product development infrastructure.  While we were fortunate to have had a very strong spring season, it is important to remember that we are still in transition – hiring and assimilating new people and implementing new systems and processes.  Nevertheless, we are pleased with the consumers’ response to our fall season full-price merchandise in retail and believe it is an affirmation of the new direction in merchandising and product development,” concluded Mr. Cooke.

The J. Jill Group’s conference call to discuss its third quarter earnings will be broadcast live today at 4:30 p.m. Eastern Time at www.jjillgroup.com, and will be archived online within one hour of the completion of the conference call.

The J. Jill Group is a multi-channel specialty retailer of women’s apparel, including accessories and footwear.  The Company currently markets its products through retail stores, catalogs and its website jjill.com.  J. Jill is designed to appeal to active, affluent women age 35 and older.

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.   Various factors could cause the results of The J. Jill Group to be materially different from any future results expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, the following: significant changes in customer acceptance of J. Jill’s product offerings; the success or failure of J. Jill’s retail store initiative; the ability of J. Jill to effectively manage its operations and growth in a multi-channel environment; the success of J. Jill’s product development and merchandising initiatives; changes in consumer spending, fashion trends and consumer preferences; the customary risks of purchasing merchandise abroad, including longer lead times, higher initial purchase commitments and foreign currency fluctuations; timeliness of receipts of inventory from vendors; changes in competition in the apparel industry; changes in, or the failure to comply with, federal and state tax and other government regulations; the impact of the Sarbanes-Oxley Act of 2002, including the diversion of management attention and financial resources to comply with the legislation and the possible adverse effect of a determination by us or our independent auditors that we have material weaknesses in our internal controls; the ability of J. Jill to attract and retain qualified personnel; possible future increases in expenses and labor and employee benefit costs; business abilities and judgment of management; the existence or absence of brand awareness;  the existence or absence of publicity, advertising and promotional efforts; the success or failure of operating initiatives; the mix of J. Jill’s sales between full price and liquidation merchandise; general political, economic and business conditions and other factors, including those detailed from time to time in J. Jill’s SEC reports, including its Annual Report on Form 10-K for the fiscal year ended December 27, 2003.   J. Jill disclaims any intent or obligation to update any forward-looking statements.

(tables to follow)

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THE J. JILL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended						Nine Months Ended
In thousands, except per share data — unaudited	Sept. 25, 2004			Sept. 27, 2003			Sept. 25, 2004		Sept. 27, 2003
Net sales	$	94,933		$	82,325		$	315,423	$	262,053
Cost of products and merchandising	64,718			57,958			202,959		175,510
Gross margin	30,215			24,367			112,464		86,543
Selling, general and administrative expenses	34,552			29,113			101,545		79,194
Operating income (loss)	(4,337		)	(4,746		)	10,919		7,349
Interest, net	97			183			335		546
Income tax provision (benefit)	(1,826		)	(2,078		)	4,442		2,788
Net income (loss)	$	(2,608	)	$	(2,851	)	$	6,142	$	4,015
Income (loss) per share:
Basic	$	(0.13	)	$	(0.15	)	$	0.31	$	0.21
Diluted	$	(0.13	)	$	(0.15	)	$	0.30	$	0.20
Weighted average shares outstanding:
Basic	20,103			19,576			19,990		19,572
Diluted	20,103			19,576			20,550		20,069

THE J. JILL GROUP, INC.

NET SALES SUMMARY

	Three Months Ended						Nine Months Ended
In thousands — unaudited	Sept. 25, 2004			Sept. 27, 2003			Sept. 25, 2004			Sept. 27, 2003
Retail	$	51,368		$	40,497		$	166,725		$	114,783
Catalog	23,937			26,047			85,743			93,884
Internet	18,171			14,219			59,377			49,788
Direct total	42,108			40,266			145,120			143,672
Other	1,457			1,562			3,578			3,598
Net sales	$	94,933		$	82,325		$	315,423		$	262,053
THE J. JILL GROUP, INC.
OPERATING INCOME (LOSS) RECONCILIATION
	Three Months Ended						Nine Months Ended
In thousands — unaudited	Sept. 25, 2004			Sept. 27, 2003			Sept. 25, 2004			Sept. 27, 2003
Retail segment contribution	$	278		$	(1,924	)	$	13,107		$	(659	)
Direct segment contribution	8,050			7,486			35,943			36,671
Other	(4,557		)	(4,074		)	(14,412		)	(12,108		)
General and administrative expenses	(8,108		)	(6,234		)	(23,719		)	(16,555		)
Operating income (loss)	$	(4,337	)	$	(4,746	)	$	10,919		$	7,349

THE J. JILL GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands — unaudited	Sept. 25, 2004		Sept. 27, 2003		Dec. 27, 2003
Assets:
Cash and cash equivalents	$	51,085	$	47,963	$	59,287
Marketable securities	13,306		—		—
Accounts receivable, net	11,410		8,820		18,634
Inventory	37,627		43,986		28,131
Prepaid catalog expenses	4,637		7,242		4,106
Deferred income taxes	6,753		7,012		7,041
Other current assets	11,743		6,941		7,555
Total current assets	136,561		121,964		124,754
Property and equipment, net	131,145		123,727		125,316
Other non-current assets	4,761		3,887		3,900
Total assets	$	272,467	$	249,578	$	253,970
Liabilities and stockholders’ equity:
Accounts payable and accrued expenses	$	49,999	$	48,914	$	45,102
Current portion of long-term debt	1,780		1,687		1,706
Total current liabilities	51,779		50,601		46,808
Long-term debt, less current portion	10,892		12,672		12,236
Deferred credits from landlords and other	40,518		33,303		37,540
Deferred income taxes	5,703		3,414		4,168
Total liabilities	108,892		99,990		100,752
Capital stock	112,563		107,896		108,348
Retained earnings	51,012		41,692		44,870
Total liabilities and stockholders’ equity	$	272,467	$	249,578	$	253,970

THE J. JILL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands — unaudited	Sept. 25, 2004			Sept. 27, 2003
Cash flows provided by operating activities:
Net income	$	6,142		$	4,015
Depreciation and amortization	13,575			11,706
Loss (gain) on trust assets	11			(217		)
Deferred income taxes	1,823			695
Changes in assets and liabilities	52			13,119
Net cash provided by operating activities	21,603			29,318
Cash flows used in investing activities:
Additions to property and equipment	(17,007		)	(24,184		)
Purchases of marketable securities	(13,343		)	—
Investment in trust assets	(997		)	(793		)
Increase in cash held in escrow	(268		)	(355		)
Net cash used in investing activities	(31,615		)	(25,332		)
Cash flows provided by (used in) financing activities:
Proceeds from stock transactions	3,080			474
Payments of debt borrowings	(1,270		)	(1,231		)
Net cash provided by (used in) financing activities	1,810			(757		)
Net (decrease) increase in cash and cash equivalents	(8,202		)	3,229
Cash and cash equivalents at:
Beginning of period	59,287			44,734
End of period	$	51,085		$	47,963