J. Jill, Inc. · NYSE:JILL
J. Jill — ICR Conference 2024
27 slides from J. Jill's conference presentation, Jan 8, 2024
Slide 1: Welcome Everybody
Jt WELCOME EVERYBODY
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Slide 3: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements This presentation contains, and oral statements made from time to time by our representatives may contain, “forward-looking statements” within the meaning of Private Securities Litigation Reform Act of 1995. All statements other than statements of historical
Slide 4: To Live in a World Where Every Woman Is Seen, Valued and Celebrated
TO LIVE INA WORLD WHERE fuate TOTALITY Of EVERY WOMAN SEEN, VALUED AND CELEBRATED
Slide 5: Fuel Her Joy and Impact with Style
FUEL HER JOY AND IMPACT WITH STYLE for all of WHO SHE IS
Slide 6: J.Jill at a glance: key metrics and history
Net Sales Gross Margin Rate Adjusted EBITDA(1)/Margin $602.9M 70.0% $109.7M/18.2% Net Sales Channel Split Avg Customer Tenure(2) Store Count(3) 54% / 46% >10 245 Retail / Direct Years J.Jill is founded 1999: opened first 2015: TowerBrook 2017: IPO - JILL Post-Covid refined retail stores and purchase
Slide 7: J.Jill is a national lifestyle brand for every moment of customers' lives
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 from attractive and
Slide 8: We target one of the largest segments of the female population
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 Adult Adult Seniors 0-14 15-24 25-44 45-64 65+ (2) U.S. Census Bureau, Population Division. Annu
Slide 9: Customer behavior and engagement
• She buys to update her wardrobe seasonally • She is digitally savvy and is comfortable shopping all channels • She frequents the store for the high-touch experience, personal styling and appointments • She leverages our private label credit card with exclusive benefits that keep her engaged (1) So
Slide 10: Omnichannel
Omnichannel Direct Store an d Retail Channels work in harm ct amless shopping experie ony t r Dire liver a se nce o u de O 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 Ou • Elev
Slide 11: The J.Jill retail platform is a highly efficient and profitable model
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 • Streamlined store fleet in premium malls (52% of units) and lifestyle centers
Slide 12: Product philosophy and assortment
• – Historically casual, right for the moment with a flow and ease to our silhouettes • – We interpret seasonal trends and delight her with inspired novelties each season. She pairs her new coveted favorites back to quality staples • – With sizes XS to 4X and offerings in Petite and Tall, our inclus
Slide 13: Our Core assortment and Sub-Brands cover the needs of our customer
Our Core assortment and 3 Sub-Brands cover the needs of our customer 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 apparel basics, trend-right color, and and artisanal & unique
Slide 14: Simplified merchandising process that drives profitability
New pieces for each collection Predictable assortment with seasonal updates Grounded in annual and semi- annual Simplified merchandising process that drives profitability while still flowing newness 14
Slide 15: Net Revenue and Adjusted EBITDA and Margin
($Millions) Net Revenue Adjusted EBITDA and Margin(1) 65.2% 62.0% 57.6% 67.4% 68.6% 15% 9% NM 16% 18% $706 $691 $615 $585 $109 $294 $302 $103 $427 $92 $288 $292 $65 $279 $413 $390 $294 $327 $147 2018 2019 2020 2021 2022 Retail Direct Gross Margin % ($38) 2018 2019 2020 2021 2022 Total Company Compar
Slide 16: Approximate Two-Year Average 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 (1) Approximate Average of prior Fiscal Years 2021 & 2022 (2) Fiscal 2021 & 202
Slide 17: Management team
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 Maria Martinez < 1 Year 10+ Years Officer Elliot Staple
Slide 18: Growth Strategies
Growth Strategies wo ‘ *,
Slide 19: J.Jill is poised to continue to take market share in a growing category
Female Apparel Total $133 Bn Measured Market J.Jill Apparel $115 Bn 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 $615 M FY 2022 Net Sales Source: Circana Female Apparel LTM July 2023 (1) In
Slide 20: Focused strategic initiatives to drive growth
✓ Attract and Convert New Customers Through Focused Strategic Initiatives – Significant opportunity to increase brand awareness ✓ Modernize the Brand and Value Proposition to Increase Relevance – New and exciting offerings such as inclusive sizing ✓ Drive Growth in High-Potential Sub-Brands and Offe
Slide 21: Drive Profitable Growth and Increase Market Share
• Drive Profitable Growth and Increase Market Share through Strategic Initiatives • Disciplined Store Growth; Expect to Open 20-25 New Stores in the Mid Term • Maintain Healthy Gross Margin Profile • Ongoing Operating Expense Management • Goal to Deliver High Teens Adjusted EBITDA Margin • Generate
Slide 22: Capital allocation priorities
• Invest in growth initiatives • Invest in systems • Pay down debt – Amortization schedule – Excess cash flow sweeps – Prepayments • Evaluate other total shareholder return strategies (e.g. dividends and share buybacks) and accretive M&A opportunities 22
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Slide 24: Performance continues to exhibit strong operating disciplines
Performance continues to exhibit strong operating disciplines despite macroeconomic headwinds Commentary Net Revenue ($Millions) ◼ Net Revenue decreased by 0.1% year-over-year, and total $150 $150 store count decreased by 1%, from 247 to 245 over the same time period ─ Total Company comparable store
Slide 25: Net Revenue, Adjusted EBITDA, CapEx and Free Cash Flow
($Millions) Net Revenue Adjusted EBITDA and Margin (1) 65.2% 62.0% 57.6% 67.4% 68.6% 15% 9% NM 16% 18% $706 $691 $103 $109 $585 $615 $92 $294 $302 $427 $65 $292 $288 $279 $413 $390 $327 $294 $147 2018 2019 2020 2021 2022 Retail Direct Gross Margin % Adjusted EBITDA ($38) Margin Total Company Compara
Slide 26: Cash, Inventory, Capital Expenditures and Debt
($Millions) Cash Inventory $77 $73 $87 $58 $56 $51 $66 $4 $36 $22 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Capital Expenditures Debt (1) Commentary • Healthy cash balance and strong free cash flow for capital deployment • Disciplined model demonstrated in rightsized $240 $234 $232 inventory
Slide 27: Adjusted EBITDA reconciliation
$ in millions (1) 2018 2019 2020 2021 2022 Q3 '23 LTM Q3 Commentary Net Sales $ 706 $ 691 $ 427 $ 585 $ 615 $ 150 $ 603 a. Equity Based Compensation: adds back stock based compensation expensed Net Income $ 31 $ (129) $ (139) $ (28) $ 42 $ 12 $ 32 through the P&L; related compensation expense reco