Shares of J. Jill Inc. dropped 13.7 percent at the start of trading Tuesday after the company posted second-quarter results that met with Wall Street’s expectations.
Net income for the three months ended July 29 increased 47.2 percent to $12 million, or 28 cents a diluted share, from $8.1 million, or 19 cents, a year ago. Adjusted diluted EPS, excluding non-recurring expenses, were 29 cents versus 24 cents a year ago. Net sales gained 9.9 percent to $181.4 million from $165 million. Comparable-store sales, which includes direct-to-consumer comp sales, rose by 7.8 percent. Gross profit rose to $122.6 million, or 67.6 percent of total net sales, from $112.9 million, or 68.4 percent, a year ago.
Wall Street was expecting EPS of 29 cents on sales of $179.1 million.
Still, investors weren’t happy with third-quarter and full-year guidance, which was slightly softer than Wall Street’s consensus estimates. Shares of J. Jill were trading at $10.12 at 9:34 a.m.
The company is projecting comps to rise in the high-single digits for the third quarter, with GAAP diluted EPS in the range of 17 cents to 19 cents. Excluding non-recurring expenses connected with the company’s completion of its initial public offering earlier this year, adjusted diluted EPS is forecast at between 18 and 20 cents.
For the full 2017 fiscal year, adjusted diluted EPS is guided at between 81 and 85 cents, with comps to rise in the high-single digits.
The current consensus EPS estimate for third quarter is 20 cents and for the year is 86 cents.
Paula Bennett, president and chief executive officer, said, “Our second-quarter performance demonstrated the continued strength of our omnichannel model and the disciplined, data-driven approach we take to our business.” She noted that as the company heads into the back half of the year, it will remain focused on “delighting our customer” with product assortment and shopping experience, while continuing to “deliver consistent profitable growth.”