J.Jill, Inc. · NYSE:JILL
J.Jill — Q3 2024 Earnings Presentation
28 slides from J.Jill's earnings presentation, December 2024
Slide 1: Investor Presentation December 2024
Investor Presentation December 2024 1
Slide 2: Disclaimer: Forward-Looking and Cautionary Statements
Disclaimer Forward-Looking and Cautionary Statements This presentation contains, and oral statements made from time to time by our representatives may contain, “forward-looking statements.” All statements other than statements of historical facts contained in this presentation, including statements
Slide 3: Our Vision
TO LIVE IN A WORLD WHERE the TOTALITY OUR VISION Of EVERY WOMAN is SEEN, VALUED AND CELEBRATED 3
Slide 4: Our Mission: Fuel Her Joy and Impact
FUEL HER JOY AND IMPACT OUR MISSION WITH STYLE for all of WHO SHE IS 4
Slide 5: J.Jill At A Glance
J.Jill At A Glance Fiscal Year ended February 3, 2024(1): Net Sales Gross Margin Rate Adjusted EBITDA(2)/Margin $608.0M 70.8% $112.9M/18.6% Net Sales Channel Split Avg Customer Tenure(3) Store Count(4) 53% / 47% >10 244 Retail / Direct Years Our History 1959 Today J.Jill is founded 1999: opened firs
Slide 6: Who We Are Today
Who We Are Today J.Jill is a national lifestyle brand that creates versatile apparel, footwear and accessories designed to meet every moment of our customers’ lives • Efficient, disciplined operating model yielding strong EBITDA and consistent free cash flow generation • Extremely loyal customer fro
Slide 7: Our Customer – Attractive Demographics
Our Customer – Attractive Demographics U.S. Female Population Breakdown by Age(2) 45+ Years Old 26% 25% We target one of the largest segments of the female population 17% 19% 13% Target customer is 45-65, with new customers moving towards the Target younger end of the range Customers Children Youth
Slide 8: Industry-Leading Customer Loyalty
Industry-Leading Customer Loyalty J.Jill Loyal Customer Strong • She buys to update her wardrobe seasonally NPS(1) • She is digitally savvy and is comfortable shopping all channels 59% 95+% • She frequents the store for Retention CSat Score(2) the high-touch experience, Rate(3) personal styling and
Slide 9: Powerful Omnichannel Platform
Powerful Omnichannel Platform Omnichannel Direct Store 3.0x(1) Omni-customer spend Engaging Experience J.Jill at Her Fingertips vs. single channel • High-touch customer • Convenient access to experience the full assortment • Elevated showcase of • Inclusive Sizing in XS-4X, brand concept Petite and
Slide 10: Profitable Retail Store Base with Room for Expansion
Profitable Retail Store Base with Room for Expansion The J.Jill retail platform is a highly efficient and profitable model that combines an unmatched shopping experience with attractive economics in only the best locations. New POS further heightens the in-store experience Optimized fleet with consi
Slide 11: Product Strengths
Product Strengths • Well positioned for the premium casual space DESIGN FOR INTENTIONAL EASE – Historically casual, right for the moment with a flow and ease to our silhouettes • Inspire Style – We interpret seasonal trends and delight her with inspired novelties each season. She pairs her new covet
Slide 12: Product Versatility
Product Versatility Our Core assortment and 3 Sub-Brands cover the needs of our customer J.JILL CORE PURE JILL WEAREVER JJILL FIT STYLE MADE SIMPLE THE ART OF EASE ALL DAY CHIC LIFE IN MOTION Simple silhouettes, high-quality Focused on elevated fabrics, Wearever provides mix & Versatile performance
Slide 13: Balanced Assortment
Balanced Assortment New TREND-RIGHT pieces for each collection Predictable FASHION assortment with seasonal updates Grounded in annual and semi- annual BASICS Simplified merchandising process that drives profitability while still flowing newness 13
Slide 14: Historical Financials
Historical Financials (1) ($Millions) Net Revenue Adjusted EBITDA and Margin(2) 62.0% 57.6% 67.4% 68.6% 70.8% 9% NM 16% 18% 19% $691 $615 $608 $585 $109 $113 $302 $427 $288 $285 $92 $292 $65 $279 $390 $294 $327 $323 $147 2019 2020 2021 2022 2023 Retail Direct Gross Margin % ($38) 2019 2020 2021 2022
Slide 15: Disciplined Operating Model Delivers Healthy Financial Profile
Disciplined Operating Model Delivers Healthy Financial Profile Approximate Two-Year Average(1) Revenue $600 Million Gross Margin 68% Adjusted EBITDA $100 Million Interest $20 Million Tax Expense $12 Million Pro Forma Capital Expenditures (2) $20 Million Free Cash Flow(3) $40 Million Financial model
Slide 16: World-Class Team with Extensive Industry Experience
World-Class Team with Extensive Industry Experience Approx J.Jill Retail Name Position Prior Experience Tenure Experience President and Claire Spofford 3 Years 30+ Years Chief Executive Officer EVP, Chief Financial Mark Webb Officer, Chief Operating 5 Years 27 Years Officer Chief Human Resources Mar
Slide 17: Growth Strategies
Growth Strategies 17
Slide 18: Positioned for Market Growth
Positioned for Market Growth Dollar Size Female Apparel Total $133 Bn Significant Measured Market Runway for J.Jill Apparel $115 Bn Growth Categories(1) J.Jill is poised to Women 45+ Household $133 Bn $38 Bn continue to take Income $75K+ market share in a growing and attractive category J.Jill $608
Slide 19: Clear, Sustainable Growth Strategies to Drive Market Share Gains
Clear, Sustainable Growth Strategies to Drive Market Share Gains Attract and Convert New Customers Through Focused Strategic Initiatives – Significant opportunity to increase brand awareness Modernize the Brand and Value Proposition to Increase Relevance – New and exciting offerings such as incl
Slide 20: Going Forward
Going Forward • Drive Profitable Growth and Increase Market Share through Strategic Initiatives • Disciplined Store Growth; Opportunity to open up-to 50 net new stores in the next five years • Maintain Healthy Gross Margin Profile • Ongoing Operating Expense Management • Goal to Deliver High Teens A
Slide 21: Capital Deployment Priorities
Capital Deployment Priorities • Invest in growth initiatives • Invest in systems • Pay down debt – Amortization schedule – Excess cash flow sweeps – Prepayments • Evaluate other total shareholder return strategies and accretive M&A opportunities • YTD Activities: – Reduced principal outstanding by $
Slide 22: Appendix
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Slide 23: 3Q2024 Financial Results
3Q2024 Financial Results (1) Performance continues to exhibit strong operating disciplines Commentary Net Revenue ($Millions) Net Revenue increased by 0.3% year-over-year, benefitting $151 $151 approximately $2 million from the shifted calendar $69 $69 ─ Total Company comparable sales, which inclu
Slide 24: YTD 3Q2024 Financial Results
YTD 3Q2024 Financial Results (1) Performance continues to exhibit strong operating disciplines Commentary Net Revenue ($Millions) $458 $468 Net Revenue increased by 2.2% year-over-year, benefitting approximately $2 million from the shifted calendar $207 $218 ─ Total Company comparable sales, which
Slide 25: Historical Financials
Historical Financials (1) ($Millions) Net Revenue Adjusted EBITDA and Margin (2) 62.0% 57.6% 67.4% 68.6% 70.8% 9% NM 16% 18% 19% $691 $109 $113 $585 $615 $608 $92 $302 $427 $65 $292 $288 $285 $279 $390 $294 $327 $323 $147 2019 2020 2021 2022 2023 Retail Direct Gross Margin % ($38) Total Company Comp
Slide 26: Historical Financials: Cash, Inventory, Capital Expenditures, Debt
Historical Financials (1) ($Millions) Cash Inventory $73 $58 $56 $87 $51 $53 $62 $36 $22 $4 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Capital Debt Expenditures (2) (1) Commentary • Healthy cash balance and strong free cash flow for capital deployment • Disciplined model demonstrated in right
Slide 27: EBITDA and FCF Reconciliation
EBITDA and FCF Reconciliation(1) $ in millions 2(1) 2019 2020 2021 2022 2023 Q3 '24 YTD Q3 Commentary Net Sales $ 691 $ 427 $ 585 $ 615 $ 608 $ 151 $ 468 a. SaaS Amortization: represents amortization of capitalized implementation costs related to cloud-based software arrangements that is included
Slide 28: Fiscal 2023 Immaterial Corrections and Revised Addbacks
Fiscal 2023 Immaterial Corrections and Revised Addbacks (1) (1) Fiscal 2023 ($ in m illions) ( 2) Q1 Q2 Q3 Q4 Full Year Net Sales $ 149 $ 156 $ 150 $ 149 $ 605 Adjustm ent 1 1 1 1 3 Corrected Net Sales $ 150 $ 157 $ 151 $ 150 $ 608 Gross Profit $ 108 $ 111 $ 108 $ 101 $ 427 % of sales 72.0% 71.6% 71