The J. Jill Group reported net sales of $103 million for third quarter 2005, an 8.5% increase from the same quarter last year. But earnings for the quarter showed a net loss of $2.7 million, essentially the same as that of Q3 2004.
J. Jill president and CEO Gordon Cooke characterized the results as “disappointing” in a statement accompanying the release. While same-store sales remain flat year-over-year, “net sales in the direct segment continue to decline driven by circulation decreases that are not generating improved sales productivity,” he said. Cooke said year-to-date direct sales per 1000 inches are virtually unchanged despite circulation reductions greater than 20%.
“Simply put, our modest top-line growth is insufficient to support desired levels of profitability,” Cooke said. “This situation is exacerbated by the fact that our less profitable retail business is growing while our more profitable direct business is declining.”
Cooke said the multi-channel apparel retailer remains committed to improving profits in the retail-store division while stabilizing profits in the direct channel.
