JILL - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for listening to the J.Jill First Quarter Fiscal 2021 Earnings Commentary. Claire Spofford, President and Chief Executive Officer; and Mark Webb, Executive Vice President and Chief Financial Officer will provide further remarks on the company's first quarter fiscal 2021 results ended May 1, 2021, which were announced with the press release dated June 8 2021.

Following today's remarks, there will be no question-and-answer session. I need to remind you that certain comments made during these remarks may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. are the uncertainties J.Jill's release and filings. SEC risks described press in and Those made recording any on June statements forward-looking The this and these statements. does update X, are J.Jill not to undertake obligation forward-looking XXXX of as

XXXX. adjusted in Finally, non-GAAP during issued the schedule the press financial reconciliation financial non-GAAP X, or GAAP J.Jill release A to versus remarks. measures measures refer showing may certain these is June available

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

Claire Spofford

Thank good and you everyone. morning,

we Our COVID-XX-related accelerated rebound rollout against this lifting and are initiatives participate the first in operating in progress of a spring many recovery. model with the reflect driving the quarter across encouraging focused healthy consumer on retail, Like activity pleased of the results to strong and country. strengthening margin restrictions vaccinations in many

we growth and direct top quarter, retail For line our compared of to year, across channels. the delivered last balanced XX%

management coupled refined the for continued addition million gross the in year's sales adjusted closures, of both the store to price by EBITDA anniversarying These expansion and was of $XX promotional for driven channels. cadence, results In drove temporary quarter. growth healthy inventory selling more last disciplined conversion benefit and margin to a full with strong period, leading first

new, really of with showing toward spring. comfortable she's to great our and she's purchase reliant our to inspiring this dresses to is While promotion. existing and a product and online. response customer engaging great us both on not excited wear-now are online shop gravitating both newness Pure traffic sense saw beautiful our with with knits in-store Jill reacting Customers, really From urgency and offering. our collection, continues novelty recover, to to in and We us to and us stores our are assortments

recently drive to over strong newness we've Day we build holiday. with Mother's we momentum continue will to the As a were particularly continue on seen in to Most of the deliberate forward, May the look we seeing. thrilled cadence date are to performance we

With leaner the more are inventory and to our allowed with to recovery is our and the shop pleased with This step price strengthen we her to inventories. respect healthier to ability ongoing quarter made is be person management. our an and pull moments family focus to that we lean forward. business first friends, special from important very committed eager once holidays The benefited summary, and and to again. going believe in to great into we customer margin we on is intend model us healthier are celebrate QX especially are on thrilled In our of to sell and progress during we accordingly. and saw This indicator gross in work back the disciplined the a the a foundation, delighting operating at promotions full continued strong it With forward.

drive to us and model product results quarter continuing across now will to chooses our customers delight to and we against first the our to be financial I hard to We operating and our shopping will efficiencies initiatives. working detail. she turn more refine experience the to trusts to Mark progress with to she J.Jill. in incredible over shop deliver whenever forward review wherever organization opportunity call see these to look our continue an We and make

Mark Webb

morning, good and Claire, you, everyone. Thank

the As Claire marked XXXX first of mentioned, J.Jill. another quarter of good quarter for progress

promos. lean to and gross lower drive Our inventories through strategy into COVID-impacted following was XXXX coming XXXX margin

the temporary QX quarter than resonated sales XXXX. in $XX $X over selling down XXXX were gross $XX versus full each Direct and was XXXX, million and for customer XXXX expectations XX%, impacted collections. points of prior against gross related our million SG&A sequentially closures first to year COVID-XX. quarter. the by full month compared primarily when to XXXX, The anticipated lower marketing collections contributing up driven to were were store million our in model basis compared XXX was with and to promotional up has by selling by product operating of XXXX million sales operations the price to above price million, occupancy lower the up XXXX. and in driven down margin $X.X income work XX% prior that Our better costs. better month Store customers QX which discounts. from Also basis above $XX.X results Adjusted and operations positive quarter over in response versus by compared was the driven levels QX better improvement expenses new first versus almost margin refined and adjusted than done on fiscal points product QX was XXXX. investment X,XXX QX of was up year XXXX, loss resulted last XX% from

income not the first charges quarter fiscal XXXX. for operations. of release the in to company fiscal quarter a For of compared incur impairment to today's the impairment first press charges $XX any reconciliation of did from XXXX, million Please of adjusted refer

the end. the which amount. during subordinated end increase an income price the mark-to-market increase driven noncash quarter Warrants in million, in J.Jill's in to stock with liquidity quarter. quarter ABL the of quarter were the fourth charge inventories a of as end resulting end goal at compared to last year's float approximately was priming tightly since the to loan the support ending as our loan were the associated XXXX, related Turning full line Total term by statement to availability to credit the derivatives priming caused manage measured selling, In plus the embedded down the $XX of million the in price inventory term the facility of $XX.X and quarter at the same to related with check cash the sheet. of plus balance agreement defined liabilities XX% first

since the of to Additionally, priming XXXXXX loan, the issued terms XX. the as in quarter, we priming accordance end additional of lenders the shares of with approximately the May

in the J.Jill's in mark-to-market the million liabilities further May mark-to-market $XX price stock XX as charge of The considered quarter liabilities and XXX fiscal additional to million of spend year and the with for with first stores, ending quarter, for of that capital full will about date. $XXX,XXX the XXXX. beyond million XX are still expect the we stores adjustment With We closed close noncash an $XX still as full value recognize about since in and Capital last expect equity we in derivative XX. XXXX. final quarter, increase expenditures versus were for end of adjustments May than first rather $X.X year to the embedded approximately stores no the two warrant year continued

of mentioned, our to we with are the the look start balance the year, pleased we with the as second to the strong and in business. quarter Claire As momentum

it experience quarter have margin malls. revenues disruption. as to second store store chain remain driving to hand much our negligible With to Thank year the base have temporary price supplier To many expect impact on as margin to reported, and should anniversary mitigate and continue has forward. I'll of centers support last as both peers date, selling We going been and work and closures you we rebound year. promotional gross in logistics respect we now to of to lower through the focused we, at our supply traffic possible and lifestyle like and from to to any We with continue back end continue recover expect will discounts to industry providers Claire. full gross which continue in expansion levels over this

Claire Spofford

thank this morning. you your Thank Mark, for you, and attention all

stakeholders we're of of great with for response momentum the business seeing driving are thank we're the our teams the to customers. their pleased ongoing support our all I in J.Jill. We from want and and

an brand again and earnings continue us to you our opportunity We incredible look to of front to have you. forward the we're updating a Thank on great on call. We making. progress build next in

End of Q&A

we for thank you On This concludes participating. conference of today's call. behalf J.Jill,

now may You disconnect.

J.Jill (JILL) 8 Jun 212021 Q1 Earnings call transcript