Women’s apparel retailer J Jill has posted a slight dip in second-quarter revenue, signaling ongoing strategic shifts as it navigates a cooling retail landscape and shifting consumer habits. But profit lifted.

For the quarter ended August 2, net sales slipped 0.8 per cent to $154 million, down from $155.2 million a year earlier. Comparable sales, spanning both store and direct-to-consumer channels, declined 1 per cent, while direct-to-consumer revenue, which accounted for 46.4 per cent of total sales, fell 2.2 per cent.

Despite softer top-line numbers, J Jill saw net income climb to $10.5 million, up from $8.2 million in the prior year, thanks in part to disciplined inventory management and operational focus.

“During the second quarter, we saw sequential improvement in sales trends each month as traffic improved and customers responded positively to the summer sale period,” said Mary Ellen Coyne, CEO and president of J Jill. 

“In line with our operating model disciplines, we took actions in season to enter the second half of the year with inventories more aligned with current trends, and we are pleased with how our teams are continuing to navigate a very dynamic environment.”

J Jill closed two stores in the quarter but still grew its footprint to 247 locations, up from 244 a year ago.

Looking to Q3, the company struck a cautious tone, forecasting flat to low single-digit comparable sales declines. Adjusted EBITDA is expected to land between $18 million and $22 million. In addition, the company expects to open up to five stores in FY25.

“As we look ahead, we are focused on realizing our brand’s untapped potential to expand our customer file by executing on a strategic framework focused on evolving our product assortment, enhancing our customer journey, and improving the way we work,” Coyne added.