To: Susan Saline who wrote (21990 ) 9/21/1999 10:27:00 AM From: AlienTech Read Replies (2) | Respond to of 43080
=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