QUINCY, Mass. - J.Jill, Inc. (NYSE: JILL), a recognized women's apparel brand, has announced a new stock offering of 2 million shares of common stock. The company will offer 1 million shares, while an affiliate of TowerBrook Capital Partners L.P., the largest shareholder in J.Jill, will offer another 1 million shares. Additionally, the selling stockholder is expected to give underwriters a 30-day option to buy up to 300,000 additional shares.
The proceeds from J.Jill's share sale are earmarked for debt repayment and general corporate purposes. However, the company will not benefit financially from the shares sold by the selling stockholder.
The offering is being managed by Jefferies, William Blair, and TD Cowen as joint book-running managers, with BTIG as a bookrunner and Telsey Advisory Group as a co-manager.
This stock offering is pursuant to an effective shelf registration statement approved by the U.S. Securities and Exchange Commission (SEC) on September 25, 2023. The offering will only be made through a prospectus supplement and the accompanying prospectus, which is part of the registration statement.
Interested parties can access the preliminary prospectus supplement and the accompanying prospectus on the SEC's website or obtain copies from the investment firms managing the offering when available.
J.Jill is a lifestyle brand with a presence through over 200 stores nationwide and a robust e-commerce platform, aiming to offer an easy and thoughtful style. The brand is based outside Boston.
The company has cautioned that statements regarding the offering's timing, size, and terms, as well as the use of proceeds, contain forward-looking information subject to risks and uncertainties. These could materially affect actual results and are detailed in J.Jill's SEC filings, including its Annual Report on Form 10-K for the fiscal year ended February 3, 2024, and the forthcoming prospectus supplement related to the offering. The company advises against placing undue reliance on these forward-looking statements, which are valid only as of their date.
In other recent news, J.Jill Inc. reported a strong performance in the first quarter of 2024 with net sales increasing by 7.5% to approximately $162 million and adjusted EBITDA rising to $35.6 million. Lake Street Capital Markets has expressed confidence in the company's future by increasing the price target to $44 from $38 and maintaining a Buy rating. The firm's optimism is backed by J.Jill's strategic focus on full-priced selling and a disciplined operating model, which have driven sales and conversion rates.
In addition to its financial performance, J.Jill has demonstrated its financial strength by paying off approximately $60 million in debt and initiating a dividend of $0.07 per share. Furthermore, the company has outlined plans to invest in marketing and infrastructure to enhance omni-channel capabilities and intends to expand its physical presence with the opening of 20 to 25 new stores in the next three years.
InvestingPro Insights
As J.Jill, Inc. (NYSE: JILL) embarks on its new stock offering, investors are closely observing the company's financial metrics and market performance. According to real-time data from InvestingPro, J.Jill's market capitalization stands at $424 million USD, indicating a moderate size within the apparel industry. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is at 11.68, suggesting that the stock may be valued reasonably relative to its earnings. Moreover, the adjusted P/E ratio for the last twelve months as of Q1 2025 is even lower at 8.72, potentially highlighting an attractive investment opportunity for earnings-focused investors.
InvestingPro data also reveals a robust gross profit margin of 70.91% for the last twelve months as of Q1 2025, underlining J.Jill's effectiveness in maintaining profitability despite costs. Additionally, the company has experienced a substantial price total return of 90.46% over the last year, a testament to its strong market performance and investor confidence.
An InvestingPro Tip points out that J.Jill has been trading near its 52-week high, with the price being at 97.29% of the peak. This could be interpreted as a sign of positive momentum, although it's worth noting that another InvestingPro Tip suggests the stock is currently in overbought territory according to the Relative Strength Index (RSI), which might indicate a need for caution among potential buyers.
For those interested in exploring more about J.Jill's financial and market performance, there are additional InvestingPro Tips available. With a total of 14 tips, investors can gain deeper insights into the company's valuation, stock trends, and earnings predictions. To access these tips and more detailed analytics, visit InvestingPro at https://www.investing.com/pro/JILL and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This exclusive offer can further empower investors to make informed decisions in the dynamic market landscape.
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