=DJ J. Jill Down -2: J. Jill Catalog Growth Slowing
J. Jill was one of few darlings of the catalog industry last year. The company,
formerly known as DM Management, had a big run with its J. Jill catalog racking up sales
and profits during a time when other catalog companies were in the doldrums. The J. Jill
catalog was so strong that DM Management renamed itself and decided to open retail stores
to sell J. Jill merchandise.
However, while J. Jill flourished, the company's nicole catalog, targeted to women 45
years and older, lagged. The catalog, formerly called Nicole Summers, was re-designed and
relaunched in August.
But nicole isn't the company's only difficulty. The company cited intensifying
competition in the J. Jill apparel sector, maturation of the core J. Jill catalog
business and the proliferation of e-commerce shopping alternatives as reasons for its
third-quarter disappointment.
"We have been projecting lower growth rates for Jill," said First Union Capital
Markets analyst Kelly Armstrong. Additionally, "there is increasing competition in the
catalog industry each year," she said.
Company officials declined comment.
This is the second time J. Jill has lowered third-quarter expectations. In June the
company said third-quarter earnings would be 7 cents to 9 cents lower than expected. The
company cited a series of factors for the loss which included investments in e-commerce,
retail initiatives and the fact that its Nicole Summers re-design would result in one
less catalog in the quarter. Before the company lowered expectations, First Call had put
third-quarter earnings at 17 cents a share.
J. Jill is looking to its e-commerce initiatives and its retail stores to diversify
the business and build revenue. The company plans to open 10 to 12 stores by the end of
fiscal 2000. The company also said it has opened an online storefront on Yahoo! Inc.'s
(YHOO) Yahoo! Shopping area.
-By Philana Patterson; 201-938-5360
(END) DOW JONES NEWS 09-20-99
05:44 PM |
