JILL - Earnings call transcript Q4 2017

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Operator

Good morning. My name is Jack and I’ll be your conference operator today. At this time, I would like to welcome everyone to the J. Jill Fourth Quarter and Full Fiscal Year 2017 Conference Call. On today’s call are Paula Bennett, President and CEO of J. Biese, Officer Dave Operating and Incorporated; Chief and Financial Officer. Jill mute have any been lines to placed All on prevent background noise. After a question-and-answer there will remarks, the session. speakers’ be to comments [Operator Securities you and Litigation the XXXX the are within of may I Safe we and Instructions] statements as need Reform to meaning Before constitute forward-looking Act that during made amended. Private the certain pursuant this Harbor call begin, of remind of provisions and risks that to from both known actual Such to could forward-looking statements results unknown cause are subject such and statements. uncertainties differ materially Those release risks and uncertainties J. are described in the and press Jill’s SECs filing. The do of the not statements our date we obligation today any and update to call forward-looking are undertake forward-looking made of as statements. this

measures versus call. the release we schedule showing financial reconciliation non-GAAP issued on this in Finally, to today. non-GAAP refer may our GAAP A is certain measures available adjusted press financial or

page obtain jjill.com. you If visiting over the you press the turn today’s do to Relations release, our of call not Paula. a by one will copy now of website may have Investor I at

Paula Bennett

for you, us everyone, they of I’d the year. associates to all thank year end I you, our for like thank joining I have results, work the contributed and that for our review call. over Thank Before past our

retail the proud consistent, of that transition. leadership, allow I I’ve and our and our and and and effective company the well Board experience in profitable into as As of time tremendously transition over I’ve and CEO to past have will serving with deep the Linda announced year the have role and understanding reflect shifting that a and over our had company. we I’m have smooth Linda forward. Jill, that I’ve the team growth from to J. delivered customers accomplished on lead I’m successfully committed on Both confident are her as worked very with my time to of her industry retirement the strength years my while XX what built we together, landscape. we

and further some follow priorities challenges business, as with let review actively trends We regarding with with addressing. but XXXX within well are performance fourth our Now, also financial me our that our the Dave results, finished as positive our for quarter will XXXX. details teams certain

comp For the total XX%. year, growth over and we EPS delivered adjusted of company diluted X% growth of

to customers. million ending continue customer year, X.XX strong with file nearly with fiscal have customer growing We active loyalty X% for XXXX our the

driven strong quarter, For we by the a took actions delivered fourth to and retail comp clear performance we X%, almost product. of positive

continued channel look retail value, Our to were to performer this higher important be continue and transaction conversion to we however increased our rollout the new e-commerce completed have as our of Direct, and delivered results platform; saw to pleased leverage average stronger underperform. channel. our Within our to store we traffic and continued

performing experiencing of which site In is below issues combination significant our a our channel are and the is affected on Dave impact having We traffic that the sum, and a in have forecast, discuss. conversion will this standard. and business product

are learnings aggressively XXXX and our teams on Our working for actions fronts trend. reverse incorporating into plans recent our to and all are

the now and Executive the to on I’d his congratulate planning responsibility promotion continuing Financial like the recent turn I new while Operating his and Dave, In over turn within role real over business I estate role, to for Officer. and to will his Chief assumes leadership development, strategic Before call Dave. call him to distribution. President finance, and Vice Dave

Dave Biese

Thank you, morning. and Paula good

together. on XX guidance years. the to and your in J. forward created you over leadership now move retirement past I’ll Let and to commit me results. thank first you at the our best we fourth all for quarter turn speak for to wish building Jill We you the strong everyone foundation Paula

as to our $XXX.X with a by million XXXX. compared gross to February in reduction clear move sales profit were was and were XX.X%. expectations X, million income the the slow was our actions X.X% XXXX again basis, total ended for to retail noted our selling weeks sales product. increased driven compared XX.X% and promotions January last versus million XX ended $XXX.X week The comparable year, total XX, our for to On net inventory. the rate company million, $XXX.X XX statement, $XXX.X First, XX year’s and weeks Gross reflects and was margin excess last line stores

last In Included the $XXX.X million was of $XX.X non-recurring of cost. $X.X fourth of million expense year’s approximately were this versus $X.X incurred year. million XXXX, quarter expenses SG&A in reported costs. million Our non-recurring we

Excluding expenses figures, for quarter years’ sales and of both total was percentage SG&A XX% fourth XXXX. last a as the non-recurring versus this the quarter from of net years’ fourth XX.X%

Our was sales. income GAAP operating $XX.X X.X% or million of

X.X% or year. million Excluding versus was $XX.X last Adjusted cost was $XX.X for income to both sales operating of X.X% million of the EBITDA the non-recurring quarter from last or million $XX.X $XX year. compared sales million as periods,

corporate or $XX quarter. December income liabilities our EBITDA $X term benefit to using diluted deferred fourth share from voluntary a of resulted net rate and which US in included significantly us our lower $XX per tax million federal our the required in is to the last XXXX Interest million, XX.X% As quarter for cuts quarter. income a the press and federal million fourth reductions expense This our in adjusted XX.X% jobs to tax $X.X was year, million loan last EBITDA the sales, $X.XX revalue one-time was versus The income of of adjusted enacted reduced reflecting totaling of tax rates. percentage in year’s decreased release. million in during reconciliation year. $X A act

compared this quarter fourth XXXX. tax to Excluding fiscal was million $X.X in income million $X.X benefit, of expense the

year. Adjusted for tax week the including excludes approximately and share, diluted last contributed the one-time income for in reform share share. net compared of versus $X.X and earnings million sales earnings which year, $XX.X expenses $X.XX. million or year’s other quarter $X per per in per In GAAP was $X.XX share business $X.XX or $X.XX was items quarter period diluted last the of Finally, million adjusted the to $X.XX and non-recurring the per approximately for the impact XXrd diluted

please full refer this year performance release. our For press morning’s highlights, to

Turning to revolving XXXX. week quarter week in the receipts quarter end last to million our the whereas as March first week inventory fiscal fiscal availability at $XX.X we approximately This apples-to-apples balance XXXX, had end sheet; XXrd the our the $X.X facility. the we in million, ended of of million receipt because and with million the were under of received the Inventory of $XX.X of is at that cash was compared in $XX.X $XX quarter final fourth million in year March not an of comparison the XXXX. credit in

the stores. During one, with the quarter, XXX and stores we ending quarter closed opened two

nine year, total of and the a we X. opened For stores closed

spending our annual XXXX expectations. Finally, with $XX totaled million capital for also line in our

outlook, reverse our are Paula for in are our our and learnings to recent mentioned, fronts actions on plans to teams trends. incorporating XXXX all to our Turning as we aggressively working and

relates acceptance needs Therefore our as in commitments. during we to inventory business, year high inventory to our were too mix inventory at quarter issue ended experienced issue. adjust quarter, to global spring Though an earlier product not levels we back, and were levels third through able business look move be. experience our December of to to particularly we last direct the the still issues has our As recovered the product not that it in and we an promotions weeks, the in operated fourth product, customer as began site improved from on the is materially the third simply peak continued we the be where it direct had our be quarter to January, as time and Further not sell-through our holiday channel. increased

performance site While much load we our faster our new pace which e-commerce technical the to at traffic in our combination continue performance improve has deceleration and inventory seen business, engagement This need of caused of our is e-commerce improve clearer customer. with significant messaging in and and the checkout, our of new too to wrong a website we the conversion. of times including lower

been in first with continue Our half inventory promote under in least business through the to to at the thus line has expectation, well will first we quarter and also XXXX demand. of get of far the year

full in have much We financial forward balance purchases healthier reduce price business our to pre-season and a second our priority. this management offering, inventory planning teams to supply our of of being promote With improve in with our place, able business inventory improve perspective. view a half is merchandize investment. been ownership both in of channel. and having of will ourselves able in clearer improving our new controlled our planful will Also with is more have to a and up timely a more going demand area to now and from use system set and to markdown direct manner. the Every the goal results planning working say, our which in-season of Needless highest a product

to are creative working we to teams our product it are to dedicated and are experience, platform. the remain new our implement side in presentation the our customer address customers, enhancements productivity have site, behavior our marketing, of will diagnose business. that e-commerce and facing We benefits deliver impacting by our improve new direct continuing e-commerce enabled We and and the our to changes we consumer seeing the in confident e-commerce and

improves. the give position to as only to for one the us recovery. trends and and in businesses adjustments Given make visibility diagnose leadership, the we healthy business year the our guidance the and providing will progresses the current trends the This transition flexibility are quarter ourselves fully until out in

to in digit for expect business quarter compared the we XXXX. basis during and do XXXX. gross With and the comparable quarter sales we mid-single bring business growth that earnings in first our retail regard our Given period. this promotion expect we expect demand, XXX to margin to to our margin, quarter, with gross line continue direct not see the first our report to decline outperforming in of decrease for to we With total range given the inventories the needed points to approximately year-over-year

deleverage We of percentage to sales SG&A expect slightly. a as

quarter tax the expected expense is company’s per to cuts quarter prior Diluted and XXXX. XXXX could. from first diluted prepayments year earnings expected where adjusted the first share tax earnings to per quarter $X.XX have diluted per decrease the in the earnings earnings spending of Diluted assumes to range versus in of $XX for term per the fiscal benefit Interest of to This the US are in to a million given act. share the loan $X.XX $X.XX $X.XX income approximately be made $XXX,XXX of for share We reduce year-over-year reduced $X.XX compared share will the and we jobs XX%. of in effective rate XXXX. about

you Let in for in also volume was speak week this a as a reverts XX to a me timing May. XX to is with XXXX comparisons, week know back higher XXXX and volume week a a much shift year. fiscal quarter replaced week This creates low February first the year year from

We this expect and $X.XX share in quarter benefit per approximately guidance. last to earnings first shift versus our is this reflected year by

actions guidance first Our again identify and the do reiterate any determine underway soon trends We will I’ll be nature. we will in possible. as will implement with in not and aggressively that expenses quarter as to work leadership to material our transition include and expect is Once that reverse are it one-time it does that amount. working associated

as look June. early release will updating our to and quarter we forward We outlook further to expect progress earnings and in you first

your take questions. can we Now

Operator

Lorraine with your [Operator question Hutchinson of Instructions] America. of comes the first Bank line from

open. line Your is

Lorraine Hutchinson

Moving on on little the more you’re wanted Dave the I e-commerce just that clarity having on business. bit a issues

the an all, gone you First it And so testing that. thought website. page the load that like would traffic speeds website, be and beta wouldn’t that throughout the entire things issue reach has if of seem new then of secondly I were live really

point. going the people with the something site is that at on there is this to driving not marketing So right

Dave Biese

beta yes, point, testing. did first absolutely your we On do

saw about rolled were we focused absolutely earlier, some brought and point As where when there of the out. that now, the on an us we what think times we about We it and we talk improvement other that the it to and performance page is very load metrics.

a little things, As adoption at we is is experience. just two period terms a something of would one say now, I believe changing is, taking longer, we the point in look that the simply it bit natural

experience customer, our watching we focused things listening as that Secondly, we’re could is there on for are is are the how the clearer idea those us this aspect there how in our to where now. And those through focus site can on is experiential she’s business. continue very we more to she I’d be site that say that we going and and and more improve behaviors a have now to that her, the are having, right navigating are hindsight now is taking we big it of

So the when say that down it of a wardrobe look and we side of advantage I lot, and really she to a of that would we promotional used, to and level you level is, we front were think of to at it’s the on her marketing take to that extent. large points was in her complete a took think I fair of that she too, fourth the had in the I quarter couple marketing that unprecedented able

down we moved conversion. well February, as as was traffic as So yes, into

is of in the fatigue little in of it do back we and in believe So terms bit February. there her introducing month a product of I’ll just inviting call

do I quite as improve The newness possible is that of need things and thing say some through visiting to the we to the is second it’s much. work simply experience, as would not the we she the yes, fact

really we those. on focused different cited like are working areas So four and experience terms e-commerce we of where we’re in

that I terms is product of focused to just like are on e-mail tactical see opportunities in that the along there as regard, she refine and presentation are our One do improve some now. opportunity things over We being where better, we the a improve getting, say the email, marketing we would that right experience. those in marketing that the performance of we very time the traffic very little with continue improve site marketing to and and as segment and that is conversion we believe an messaging bit

Operator

Jefferies. comes line with of next from the Your question Randy Konik

is line open. Your

Randy Konik

you the if we first, little to you is not about apples-to-apples. perspective a XX% of mentioned further have things, bit make inventory of you apples-to-apples. it would or obviously give balance the like Dave of one growth it Couple that Could in up inventory look remarks sheet the what thought week more us shifting

the Just on high the inventories some to us to at sense versus give moment. how try are rate normalized

Dave Biese

in into consideration is, of slow are the basis. was up our outside now were expectation in bought the again business, in now in for those different would we planned that on receipt particularly if February our direct. we composition would expectation new composition an that where where the is year-over-year coming in inventories had terms moment, the opposed I higher in when we noted product as we the the is inventory in expected, and product say of a challenges a off where that roughly age level what situation than at is necessarily the our the demand our Yes, to exclude and versus start commentary, our receipts level we and a had level. been apples-to-apples X% to was more have Not the absolute take And when you we

Randy Konik

the mis-match identification it. trying Is mix trying any the of the And Got get, throughout of of on then goods trying to out off. and terms of in there is you’re to assess off that of figure comments so the issue just couple quarters, terms a what’s in to about seeing the it last over forth. or little

Dave Biese

if specific a you more that and could or bought things we you in but couple on precisely our buys, real your have. are of as to things some terms it a we goods business there level quarter, of see that in hadn’t after don’t that about talked the will. the I put category finger first We wins third can that of the challenging were

I fact think through there of as and acceptance that’s moved October that improved quarter the important November’s and fourth we we about deliveries. was talked the

somewhat the softer went in business the through you as business at came As And on we goods some was point talked this our group, with X December, December in January well. December. after

that We our goods aged not have had and to more we Again it went when little and bit ended for in January things was inventory a to January. acceptance did seeing month. the as we saw what little and was manifest we hoped we in part as in direct. as So the up of themselves of promotion of we bit some turn went a so start January, did through we combination in more that is kind you’re levels what that’s more

So really goods would in been of there. Right now to direct, full our say service I one it’s it’s first there. a In goods a many retail through the goods In merchandiser priced are and we challenging. the more showcases channel, relative the too guide thing simply or the have able historically is half. superior experience. of that work seeing of just that you’re direct The are strength the strength bit we things. the It full there little wrong become to it

Randy Konik

so how all cleared then on then you quarter? direct, a clearing more being – strategy, and thought the the that stores to cleaned XXX quarter quarter if to altering all, over we if if will. I and margin, could get some in that channel? thinking into last couple the the the of And third hang quarter think, you think get you’ve the first through it. Got always trying question, Do sense first stores given do that point for down do priced the a and gross of inventory. be on the you at you believe extra How the next I’m strategy just the need inventory of right clear will do through can the is through the through clearing to B, you get quarter keeping about of it first guys to and if plus the function clearance guidance less of altered at second quarters; issue strategy clearance change the of of out through XX% most A,

Dave Biese

going don’t additional If to see expect It’s to With those that I with though, said some it’s same our I of move anything through Retail more along be through of start way goods the that do on our approach that good retail. situation flow direct, direct the we see beginning channel. going so some from help promotional the I will generally. our about think we still changes goods strategy. promotions current out

perform whether promoting, there’s to take no performing, of customer though and we as to may the that some aren’t even going that things So expect direct stock. room a we’re we through product be softness seeing in good or simply leaves of that front channel. to very deal go in them aggressive tell of would out points too keep a it frankly some are going if reason is out to see The XXX basis to begin there we direct you not would us goods our are I simply to promote, that do and

our is that and thinking guidance. that So into is fully baked our

Beyond I inventory. having the levels other the we’re take half going more more quarter composition through fall now and the to that first at it our Randy, than the a comfortable with right wouldn’t lot view say to would in point us right say of point and first some of whole really that’s

Operator

Company. comes line Cheng question Cowen with of next from Your & the Oliver

open. is line Your

line from Trussell question with Deutsche Bank. the Paul next of comes Your

Paul Trussell

I coming customers, that fall you’re the about us kind grew mentioned acquired you just returns I the still talk getting what X% of to Can this year. So past so or think newly believe their on customer you could prior are years, falling prior you material more from shortfall is of that elaborate meaningfully and/or you’ve customers really from on reducing what just frequency if short please? a in spend, those seen

Dave Biese

would bit, is little I as customers I bit well a It a new direct of in point retail. more across terms say that that customers. Interpreting would brand in shortfall to than as existing little business,

overall, still be in continue overseeing acquisition, a moment newer that customer fair with model a you As third the economics the their different adjust for in the little return we to on quickly if continuing moment quarters of return have it’s and see we far say metric fourth as line are that brands the that to to We and would the short fire to to the But in will. term. model. adjust that

other of through have even different we wouldn’t year thing in say but coming dramatically say terms year-over-year the would the did point is, quarters third out of retention we of the fourth view right growth nice the level marketing, had of rates. of model. acquisition We’re our terms in only I and too and in I a The

with like feel us us we up is it to is make our better. the still So and customer now to experience

Paul Trussell

that expectations the inventory But asked firmly won’ juncture helpful. return growth obviously and gross is second outlined by and that’s have that’s expectation given circling this of the understandable this of it it, do certainly or have Got issues. comps or at question kind outlined And here early an then earnings tell product conversion margins too you’ve flattish and half, to kind you year, you just a t to to at point? to earlier, positive so back this

Dave Biese

will call. June when wait but further Appreciate our next to early ask am have guidance get to the in question we going Paul, and I you we

Operator

Your Morgan of comes next question Stanley. Greenberger from with the Kimberly line

is line Your open.

Kimberly Greenberger

in e-commerce. product at the how that is struggling either and break if any us stores comp quarter you down could look it guidance, that give you first will between this you mid-single color it new or in and negative the think channel. with I’m if the digit channel you’re then on stores wondering are clearance the deliveries the And have spring challenges strictly secondarily, having, e-commerce carry-over also

Dave Biese

more the going that our both expectation be tell the of in businesses negative are so. In direct that they terms quarter, to than business specific that be I won’t other first be would on of much the to mix but of you

Paula Bennett

certainly to and there is come very product of sales as the challenge The they nice of would is significant And with terms strong portions response she full showing our new in I it’s in retail. the that price product see product. in, the competing add can direct Kimberly response collections that that in is

So a response Dave direct. than we in retail seeing in we’re mentioned better as are

Kimberly Greenberger

the very can that to the to then complex us the but And said and just then of it problems currently on diagnose. continuing I what it’s you website. you’re you’re I diagnose today you issue, And Dave the know that know you’re issues working a else give a you’ve list probably as know of with website experiencing sort

Dave Biese

Sure. I guess I would go back to the the four things script. that we note in

experience that run originally So the is we there is period adoption slide going itself. there than is overall believe an I again that longer to expected.

becoming I there’s about think of site. to acclimate the that to natural So terms going better in be something her

other then that there. do counting the site, of is she have in called the Again or and can the though, updates things taking with she’s pointed would her, note. room, things next there I a have not creative we are there look simply we are are in take are and she’s we’re that are when very is there. or believe will out and communication, identified work on of the that thing light, seeing the either occur that things thing all our what ties to those the have we that heading, is it terms scheduled to how that are them in through Things experiences. we to with will It’s customers noted. few over in marketing in through We’re tell of that landing, that in really either specific email, number I we spring The presentation largely initial of to a the she we and what all improve her We challenge is was to it we’ve worked the you of us e-mail can is the experts where and the productivity we we’ll and where specifically counting how months, of for our on number what performance control open put the where in seeing down, sat ourselves when improve of what navigates, rates I product terms in season.

the but going how little I on a lot when you behaving where generalized, funnel tell that’s in is what going buying. how a is hits diagnosis on would have very is we to our she site, do she she and entrance data comes the Now handy, when of in she terms pages, that’s the of she lands

So I The last about that analyzed say number that. There the facing on and few. things all would to of touch improve a to heavy we we really seeing through going diagnosis there, the points way to in are those purchase I’m a that for the look friction have talked was thing customer to just enhancements.

the of started working really offering fall experience. to going some to account I and year. through pay in like believe and at improve to it about, now talked looking I year. starting my in There’s fall, things see point sometime the going improve but are be different features We’re where to be guidance we A lot additional the things to later we that of we and earlier add options site honest, we these the point the will working that feature stand added things some from experience. other these this can point this features fit There’s the really going those to to be the significantly through

Operator

question Company. next the of with Chen comes Cowen & Oliver Your from line

open. Your line is

Oliver Chen

of what second factors what lines along there with terms a a you helped of supposed and experience. terms terms changes competitive you are just just most inform other and the sector. the of And where customer at the the how in of the of should it part experience the about to in digital of The lot And question terms site hypothesis play time friction that in the do was Has customer which across you David be And better next. you program should details this, the helpful, challenges think matching were the in you’re causing are that does in acquisition, digital go help but decisions over have. channel being ultimately do the related analytics making it’s and enable? to data

Dave Biese

of breaking I implementing that clear of scheduling last data Well that the that mechanical that I’ll through analytics what a terms advantage, not alluding that, real understand and as the just what site, will looks in fulsome update data tell not and really on website those terms start advantage improvement. still behaviors to guess that our of I in but terms and was identifying things using is, transaction, you seeing friction, also and really our an capabilities we list I from taking using think the scheduling stepping back inclined we I’m point tell what of the in really what of points our really tools I one on was the the and all are through full like. I capabilities, very It’s is, to the opportunity. the updates. in those first. previous in in-fix down, understand. the it’s points see that we’ve that doing you identified you to it’s data as at customer’s the those every with work those beyond response And and of that of being now really standpoint in those to data have that and to

and identified that’s and we have can of that’s news. bad say are a that also experience. improve the can that we news, clear I’ll and identify see the good bit that will There things So a little

more bigger is, the concerned, it’s a As crowding players of big players digital I terms in digital I came in that and quarter the were of would got in players, space just what far as fourth from guess there confirm belief is the our standpoint.

to that and we say in and impact would But of can that I then can’t So how if obviously that forward. that. of collected recognize we tell look we’re you something us. it’s going body use as I our translate to acknowledge knowledge I improve does performance aware to that

next that build hindsight it’s that something say to holiday would around particularly So we our thinking I in [further] year. will

Paula Bennett

do on great we product really can forces delivering and and a There certainly that’s are the and and focusing presentation as to at energy working a make experience know point the customer market in things terms are key what on better that we experience the but focusing better on site play, we that that Oliver can’t is we creative we’re well. job of a the our control.

Oliver Chen

then you as mitigate where to all misses will well guide possible in it’s and you about the sounds about best of in just status and that It just terms that lastly, want risk avoid the continue to creative side be. you the to going And to how product the there, the like you feeling of as curious tools helpful, on are are where process, enable forward. the engine with way innovation

Dave Biese

is, So is our it it that comfort asking how what if forward? interpreting simply is around gives us that, there you’re design process going

Oliver Chen

Yes, that’s great.

Paula Bennett

strategy a team clearly There great very experience. place. design better on in say our change do merchandising now job Oliver merchandizing still to or a is towards or what much for to no creative that is we and experience creative in to learn other delivering from prove design to working a customer. I than that perspective, what They’re and team continue happening all side can and our absolutely a the a would their and are very from

Dave Biese

of we’ve reinforcement we age are goods, the moment, particularly because we way product. in over accumulated the some And direct, particularly sorted the at in said historically,

get a improve back chances it. too first would one then So that to that it our we certain the level, have price the And full an assortment but of the also assortment offer to and inventory edit the half in things mean absolute to also it’s is in likely point.

and the that so inventory overall towards an again is geared as fall, opportunity as well level. assortment a composition of is All

Operator

Your next Tunick question comes Brian Royal from Bank the line of the Canada. of with

Your line is open.

Brian Tunick

trying the real My is the to at understand. understand level trying and really store question de-sale to

like fourth for guiding comps been the So them it at and over store double-digits, must the have sounds negative. now quarter you’re

maybe direct de-sale just that’s earnings Dave comments that what’s the a So be this, to the on walk be on just then up the impacting whether happening may And through us trying understand retail side. it’s initiatives savings year won’t take rate in curious were parts turnaround business reinvesting tax about the if are you’re on the any that them today. the of you or planning of of any top and XX% tax those just to now, to talking

with And if third tax savings. your times. the curious your is doing anything So then you question lead just just were

remind rails, can just asked Oliver you think I the of guard time about going on just from some of what’s us sort a perspective? lead

Dave Biese

times about our anything to do course. of retailers, differently. how like, nothing out and changed anything it the to that’s of many we Like see mention. lead don’t ordinary can to think really time I we’re or and improve terms there’s we it out always improve working what response but on the Nothing think Well in stands

So, and gotten the now, at better around going to as bit for development right concerned, going the by we’re taxes quarter. I’m now, ourselves little continue a we behind going to the to far like to cadence catch getting much the focus we’re and are feel we’ve our up nothing ourselves first right point position that beyond this like, a we fall. backwards on there’s share in as me investment have

I stay idea particular general reinvesting savings on as have but process and in thought say a that, – taking them way. So around don’t a from a not tuned would there’s we taxes

to off benefit smart price as us, are, quarter. nice less There those where look and the priorities are a priced saw benefited quarter for a what retail, of traffic also a be to our better how was the the it I of savings really retail invest we going of fourth schedule, and a is so. are the to the it business from in In benefit But conversion promotional goods, and we think our in they savings. in forward. and we’ll is opposed nice about in both because mix full in but terms business meaningful

I there as we in think promotional idea of there’s little also as of a the were. bit terms

filled smart, is that of out took she wardrobe. advantage customer really and her Our she

February so drop not traffic we off of but have the seen not in overall big So business, idea is terms a much conversion.

So is business more be mid-single of could official so like I’ll answer, will driven my change that flat We on on a I’ll a flat going probably in slight the negative is more now a whereas little to like to be much bit relative basis it sort retail. going more to a negative, a direct. is retail like say and be I answer be but stronger.

Operator

Your next the comes SunTrust. from line question of Pamela Quintiliano from

line Your is open.

Pamela Quintiliano

patterns second then the the first the customer there had metrics are remind those store regarding challenges. you versus is of as two in for was, the on can question customer spending shopping there. the and store, you’re just shifting whose the the cross are the you the question, anything shopping And just recent year, online what your plans profile of and I growth and to due us

Dave Biese

store concerned, stores XX range guidance, growth we in stores, so the XX, growth stores So eight close new XX we to of looking our the as to that coming XX as in and for and [indiscernible] to far is expected around new for we cited year. we’re in

so there sorry. I’m your for year, next Sorry, go, guidance there’s you

stores that. XX look thought reason But apologies So for to for that’s where I we are locations. covered some I of XX for year I’d new at at new store. we next growth for

or next seven off locations the to eight like in period. expect close We

Pamela Quintiliano

or you where consistent? challenges from been change any reflecting have been the recently had that you’ve that is Is

Dave Biese

about talking been really for our an now has at some would say that’s we’re time. idea What I necessarily. influence

profile. customers anything well, XX% comments both terms shop talked retail. I the past some metrics about file to positive a customer in I’ll but single in where what spends shop guess the to of the about there both There the was was direct direct, customers the those far our relative we type channel of new say real go though earlier There in Historically The the at file as of our is means is and and three about as in of some it ended strength we As materially profile different I back most that not note was part my in were the and in channel, strength terms that in that Xx of customer. channel as do that multiple brand, saw customers in versus was relative times, it channels. the we’ve I weakness. a wouldn’t that’s the highlight year existing that just and for the

Pamela Quintiliano

maybe And online, mentioned keep you such of you know customer more could about you with disappointments you often marketing because you that do on outreach anything the either you’re the when how occurred had and recently her, messaging have the would you or some appreciative. if but a loyal of think just timing marketing, be differently I and have her to provide how speaking

Dave Biese

mix year, term also six to brand next me improve around Well able them to file to longer we’re the always opportunity I the and start job There are touched at take looking to do marketing. activities specific months for the for in this messaging, the those I try to the fall beginning then segment there’s I been believe of and initiatives there. working think of hold. for also really are that terms towards of an more – don’t we’re better some to a message We data our directed least things going and terms in really think let refine there. do use I on of to email a

those see I’d So as bigger ideas. some

as next as for part where to going I frequency are expect look more can, to a most amount as at overall we are the because We’re months, far six be going that the the to of again we the message as and would of but messages those promotional. soon the improve fair messages for inventory,

Operator

the Fargo. question line Ike Your Wells Boruchow from comes of with next

is Your open. line

Ike Boruchow

if it. know you don’t gave I Dave

though you the missed it little it for in comp just is Brian’s us the to it store it. if digit give comment rate, trying then and off on week, kind CapEx end if you for deny and curious store get confirm performance bit comp can QX. double of throws a about kind the a on of XXrd Can the the Sorry in year or back number you on the just comment

Dave Biese

I Yes, fourth it digit a quarter in that for comp will confirm the retail. double was

Ike Boruchow

number Got yet. it. And the CapEx

Dave Biese

as XX where XX your you believe week, XX calculation that our are about as percent to a was CapEx. comp I opposed week. results based I’ll comment, remind week on And was just question comp a other to

on that a guidance We at date. will provide later

Operator

for of This would call. call closing the remarks. portion Q&A back to to our like concludes over I turn the Paula now

Paula Bennett

omni-channel like action the in to And improve forward our future well we to could power I customer over the J. weeks our to Jill foundation, Jill and effectively overtime. our coming the And momentum you. year ensure customer more taking ever, past working look thank as support before Linda be I and team, And to our to disciplined transition over public current while to And data positioned approach remains of Thank is regain strong the we Thank than a brand talented our close, company. smooth with business. we aggressively I’ll to J. and using you. I’d our trends, a base, and Jill. our be our for confident team commitment you not realize are they transition. the of potential loyal With of the all stronger J. to work carrying to as your

Operator

This conference. concludes today’s

now disconnect. may You

J.Jill (JILL) 15 Mar 182017 Q4 Earnings call transcript