J.Jill (NYSE: JILL) reported Q1 EPS of $0.29, $0.09 better than the analyst estimate of $0.20. Revenue for the quarter came in at $166.1 million versus the consensus estimate of $160.5 million.

Linda Heasley, CEO of J.Jill, Inc. stated, “I am excited to have joined J.Jill at an important time in our company’s history as we plan our next phase of growth. The first quarter underscores we have work to do and we have indicators of improvement. We experienced positive comps in our retail stores. We also saw improved results from our e-commerce channel. We remain focused on initiatives to improve our overall performance and get us on track to deliver at a consistent level that is expected.”

For the first quarter ended May 5, 2018:

• Total net sales for the thirteen weeks ended May 5, 2018 were $181.5 million versus $166.1 million for the thirteen weeks ended April 29, 2017. The 9.3% increase in total net sales versus the prior year was partially driven by the calendar shift created by the fifty-third week in fiscal 2017.
• Total company comparable sales, which includes comparable store and direct to consumer sales, increased by 2.3%.
• Direct to consumer net sales represented 40.5% of total net sales, compared to 42.6% in the first quarter of fiscal 2017.
• Gross profit increased to $120.3 million from $115.6 million in the first quarter of fiscal 2017. Gross margin was 66.3% compared to first quarter gross margin of 69.6% in fiscal 2017.
• SG&A was $100.3 million compared to $97.0 million in the first quarter of fiscal 2017. First quarter 2018 SG&A included $1.3 million of non-recurring expenses and $0.2 million of accelerated stock compensation expense as a result of a CEO transition. First quarter 2017 SG&A included $3.6 million of non-recurring expenses related to the Company’s initial public offering. Excluding these one-time expenses from both this year’s and last year’s figures, SG&A as a percentage of total net sales was 54.4% compared to 56.3% in the first quarter of fiscal 2017, with the decrease versus the prior year on a percentage basis partially driven by the calendar shift created by the fifty-third week in fiscal 2017.
• Income from operations, inclusive of non-recurring SG&A expenses, increased to $20.0 million from $18.6 million in the first quarter of fiscal 2017.
• Adjusted EBITDA* for the first quarter of fiscal 2018 increased by 1.7% to $31.5 million from $31.0 million in the first quarter of fiscal 2017. As a percentage of total net sales, Adjusted EBITDA was 17.4% compared to 18.7% in the first quarter of fiscal 2017.
• Interest expense decreased to $4.8 million from $4.9 million in the first quarter of fiscal 2017.
• Income tax expense was $4.0 million compared to $5.6 million in the first quarter of fiscal 2017, and the effective tax rate was 26.1% compared to 41.1% in the first quarter of 2017.
• Diluted earnings per share were $0.26 including the impact of one-time expenses, compared to $0.18 in the first quarter of fiscal 2017. First quarter fiscal 2018 diluted earnings per share included approximately $0.03 benefit from the calendar shift created by the fifty-third week in fiscal 2017, and $0.05 benefit from the lower tax rate in fiscal 2018.
• Adjusted diluted earnings per share* for the first quarter of fiscal 2018, which includes the benefit of the calendar shift described above and excludes non-recurring expenses and other one-time items, including CEO transition expenses, affecting diluted earnings per share, were $0.29 compared to $0.24 in the first quarter of fiscal 2017. Adjusted diluted earnings per share uses 26% and 40% tax rate assumptions in fiscal 2018 and 2017 respectively. The lower tax rate assumption in 2018, resulting from the U.S. Tax Cuts and Jobs Act enacted in December 2017, results in a benefit of $0.05 in the first quarter of fiscal 2018.

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