J. Jill on Tuesday announced it recently made a substantial debt repayment.
The women’s apparel retailer said it repaid $60.4 million toward a $175 million term loan issued in April 2023. J. Jill said it paid a required $2.2 million principal payment on April 26. It made an additional voluntary payment of $58.2 million on Friday. The recent payments reduced the company’s term loan debt to $108 million, leaving the retailer with a cash balance of $28.2 million as of Friday, according to the company.
J. Jill also reported preliminary earnings results and updated guidance on Tuesday for the first quarter. The retailer expects Q1 net sales of about $160 million, a 7% year-over-year increase, and adjusted EBITDA ranging from $33 million to $34 million. The company’s prior guidance forecast net sales would increase in the low to mid-single digits and its adjusted EBITDA would range from $29 million to $33 million. J. Jill plans to release its full Q1 financial results on June 7.
For the fourth quarter, the company reported net sales rose 1.2% to $149.4 million. Net sales for the full fiscal year 2023 fell 1.7% to $604.7 million, while net income last year dropped to $36.2 million from $42.2 million in 2022. J. Jill narrowly avoided bankruptcy at the height of the pandemic after reaching an out-of-court agreement with most of its lenders about four years ago.
"We are pleased to be in a position to leverage the strong cash generation of the business to rapidly de-lever our balance sheet, reduce interest costs, and return capital directly to shareholders,” J. Jill CEO Claire Spofford said in a statement.
J. Jill’s board of directors approved a new quarterly dividend program, starting with an initial quarterly cash dividend of 7 cents per share payable on June 12. J. Jill said it intends to pay quarterly dividends in the future, subject to market conditions and board approval.
“Through this balanced and disciplined approach to capital allocation, we are maintaining strong financial flexibility to continue to invest in our growth while demonstrating our commitment to driving total shareholder returns,” Spofford said.
