J. Jill Incorporated IPO
Jill is a women’s fashion brand that operates within the United States. According to the company’s description on NASDAQ, it is a “nationally recognized women’s apparel brand focused on a loyal, engaged and affluent customer in the attractive 40-65 age segment.” Further, the company says that its clothing style targets to provide women with an easy and relaxed outfit which at the same time depicts them as having confidence, comfort and an overall full life. The company was founded in 1959 and operates 275 stores across the nation.
The company filed for an Initial Public Offering privately towards the end of 2016. However, it made an announcement concerning its intentions to go public on February 10th. It gave a $100 million placeholder for its offering on the same day. Surprisingly, the company later announced an amended proposal for its offering at a maximum cost of $215 million. This second announcement was made towards the end of February.
Jill made its initial offering on March 8th this year. It sold 11.7 million shares at $13 each. The stock price was below its estimated price range of $14 – $16. The company’s release gathered it a revenue of $152 million.
Despite the rather lukewarm treatment of J. Jill’s stock during its offering, the company recorded a 3 percent increase in share value resulting in the company’s stock being priced at $13.02 at the end of its first day.
Underwriters for the offering included Morgan Stanley, Jeffries, and BofA Merrill Lynch. The underwriters still have the option to buy an additional 1.75 million shares so as to cover overallotment. This could raise the total capital obtained from the offering to a total of $175 million.
The company’s major shareholder remains Towerbrook Capital Partners LP, which took over the company in 2015. Towerbrook Capital Partners expects to own 57 to 60 percent of the firm’s shares after the offering.Jill has seen significant growth over recent years, and currently, the company is profitable. The company registered sales totaling to $617 million for the 12 months that preceded 29th October. This is an increase of $187 million as compared to a revenue of $432 from total sales in 2012.
Prospects for J. Jill this year include opening 15 new stores across the United States. This is in line with its long-term aim to open an additional 100 stores over the coming years. Despite its increased profitability, J. Jill still faces significant competition from other fashion brands such as H&M who are popular for their fast-moving and low-priced fashion products.
However, J. Jill has come out to say that it has an advantage due to its consistent and loyal clientele. Further, its data reserves can pinpoint 97 percent of its transactions with customers. This information can be analyzed to see trends as well as improve on certain areas within the company over time. Additionally, the company also relies on e-commerce and catalog distribution for its sales. The company registered 43 percent of its sales last year as a result of these media. With growing customer bases online, J. Jill’s emphasis on customer relations and online platforms could lead to even higher sales in coming years.