Despite a decline in fourth-quarter net income, J. Jill Inc. turned profitable in 2022 overall.
Net income was $1 million, or $0.07 per diluted share in the quarter ended Jan. 28, compared to $3.6 million, or $0.25 per diluted share, in the year-ago fourth quarter.
Adjusted earnings before interest, taxes, depreciation and amortization for the fourth quarter was $15 million compared to $15.2 million in the fourth quarter of fiscal 2021.
Operating income was $7.8 million last quarter compared to $7.5 million in the fourth quarter of fiscal 2021.
Total net sales were up 1.7 percent to $147.7 million compared to $145.2 million for the year-ago period.
Inventory at the end of the fourth quarter was $50.6 million compared to $56 million at the end of the year-ago fourth quarter.
The company recorded an income tax provision of $1.1 million in the last quarter compared to an income tax benefit of $0.4 million in the fourth quarter of fiscal 2021, and the effective tax rate was 51.2 percent compared to negative 13 percent in the fourth quarter of fiscal 2021.
Total company comparable sales, which includes comparable store and direct-to-consumer sales, increased by 5.3 percent for the fourth quarter of fiscal 2022.
Direct-to-consumer net sales were down 2.5 percent compared to the fourth quarter of fiscal 2021 and represented 49.9 percent of total net sales.
Claire Spofford, president and chief executive officer of J. Jill, stated, “We are pleased with our strong finish for the year as we delivered better than expected top- and bottom-line results for the fourth quarter and full year. Throughout fiscal 2022, our teams did an exceptional job in delivering strong operating results while executing against our strategic initiatives including the launch of our Welcome Everybody campaign.”
Spofford added, “In 2023, we expect to build on this progress while maintaining the disciplined approach to inventory and expense management that we have demonstrated over the past eight quarters. While we are cautious with respect to our outlook for this year given the ongoing macro-related headwinds, we remain focused on positioning J. Jill for long-term profitable growth.”
For all of 2022, net Income was $42.2 million compared to a net loss of $28.1 million in 2021. Operating income was $78.7 million compared to $58.7 million for the year.
Adjusted EBITDA for the year was $109.4 million compared to $91.8 million in 2021.
Net sales were up 5.1 percent to $615.3 million compared to $585.2 million in 2021.
Total company comparable sales, which includes comparable store and direct-to-consumer sales, increased by 6.5 percent for the year.
For the first quarter of fiscal 2023, the company expects revenues to be down in the mid-single digits compared to the first quarter of fiscal 2022, and for adjusted EBITDA to range from $25 million to $30 million.
For the year ahead, the company expects annual adjusted EBITDA dollars to be approximately flat, total capital expenditures between $18 million and $20 million.