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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): SEPTEMBER 20, 1999
THE J. JILL GROUP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 0-22480 04-2973769
(STATE OR OTHER JURISDICTION OF (COMMISSION (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) FILE NUMBER) IDENTIFICATION NO.)
25 RECREATION PARK DRIVE
HINGHAM, MA 02043
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (781) 740-2718
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ITEM 5. OTHER EVENTS.
A copy of a press release issued by The J. Jill Group, Inc. on
September 20, 1999 is set forth in Exhibit 99.1 and is incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) EXHIBITS.
99.1 Press Release dated September 20, 1999
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
The J. Jill Group, Inc.
Date: October 4, 1999 By: /s/ Gordon R. Cooke
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Gordon R. Cooke
President and Chief Executive Officer
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The J. Jill Group, Inc. (ticker: JILL, exchange: Nasdaq) News Release - Monday,
September 20, 1999
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The J. Jill Group Comments On Expected Third Quarter Results; Updates Retail and
Internet Strategies - Announces Strategic Alliance With Yahoo! Shopping
HINGHAM, Mass.--(BUSINESS WIRE)--Sept. 20, 1999--The J. Jill Group, Inc.
(Nasdaq: JILL) today reported that based on currently available information, the
Company anticipates sales for the third quarter of fiscal 1999 will be
approximately $46 million. The Company expects earnings for the third quarter to
be a loss of approximately $0.11 per diluted share before one-time restructuring
charges. Actual third quarter earnings will be released on or about October 14.
The Company cited lower than expected sales from its repositioned nicole
catalog, intensifying competition in the J. Jill apparel sector, maturation of
the core J. Jill catalog business and the proliferation of e-commerce shopping
alternatives on the Internet as reasons for these disappointing results. In
response to the above, and in an effort to streamline operations and position
itself competitively for the future, the Company has decided to discontinue its
nicole business and scrutinize and adjust its expense structure as appropriate.
The Company also announced that it expects the fourth quarter of fiscal 1999
will be significantly impacted by all of the aforementioned factors.
Additionally, the Company expects to incur material one-time restructuring
charges in the third and fourth quarters of fiscal 1999.
Gordon R. Cooke, President and Chief Executive Officer, commented, "While the
inevitable slowdown of J. Jill's rapid growth has happened sooner than we
anticipated, over the past year we have laid the foundation to diversify our
business through the expansion of our retail and e-commerce operations. Because
we feel management's time and our Company's resources would be better spent
fully devoted to growing and developing the J. Jill brand through multiple
distribution channels we have made the difficult decision to discontinue our
nicole business. As this action illustrates, we are taking this situation very
seriously and are prepared to make the difficult and necessary decisions in
order to protect the franchise that we have created over the past three and
one-half years."
RETAIL STRATEGY UPDATE
The J. Jill Group also announced today that negotiations are underway to open J.
Jill stores in five premier retail centers in fiscal 2000. The stores, located
in the Water Tower Place in Chicago, Mall of America in Minneapolis, Tyson's
Corner Center in the Washington D.C. area, The Westchester in White Plains, New
York, and Pacific Place in Seattle, will average 5,500 square feet.
Mr. Cooke remarked, "These five locations rank within the top ten potential
upscale mall locations in the country based on our customer demographic profile
and give us an invaluable opportunity to extend the reach of the J. Jill brand
to our target customers. Furthermore, our ability to obtain retail space in
these five premier malls speaks to the reputation of the J. Jill brand in the
marketplace. The opening of these stores, coupled with our two previously
announced locations slated for opening in 1999 in Natick, MA and Providence, RI,
will put us well on our way to achieving our goal of opening 10 to 12 J. Jill
retail stores by the end of fiscal 2000."
INTERNET STRATEGY UPDATE
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On September 1, the Company launched its e-commerce Web site, www.jjill.com.
Since going live, and with minimal promotional activity, the jjill.com Web site
has generated average daily demand of $35,000, which represents more than 5% of
J. Jill's total demand for the comparable period. J. Jill's online store offers
100% real-time inventory availability and customer self-service capabilities.
Currently, all of J. Jill's fall 1999 fashions, accessories and home accents are
accessible for viewing and purchase at jjill.com.
The site reflects the J. Jill lifestyle imagery through an easy-to-navigate
virtual retail store consistent with the J. Jill catalog, and utilizes the
latest interactive and customer friendly features. J. Jill's online store allows
customers to shop by theme, such as "weekend wear" or "career," as well as by
category, style, color or design. Additionally, jjill.com presents the season's
"must haves" and offers customers gift ideas based on product type. The site
also provides measurement and size charts, inventory check and product
availability capabilities, as well as alternative choices if an item is not
readily available.
Mr. Cooke stated, "The jjill.com Web site reinforces the lifestyle image of the
J. Jill brand, which has been instrumental in our catalog growth. As the
Internet has become a powerful medium that is increasingly important in our
customers' everyday lives, the extension to an online channel is a natural
evolution of our business. By launching the jjill.com Web site, we can
communicate more frequently with our existing customers, leverage our extensive
database and introduce the J. Jill brand to previously untapped markets."
YAHOO! ALLIANCE
As part of its Internet strategy and in an effort to expand its Web presence,
The J. Jill Group also announced that it has opened an online storefront on
Yahoo! Shopping. This agreement offers J. Jill exposure to one of the Web's
largest audiences and to millions of consumers who use Yahoo!'s convenient
Internet shopping service. In addition, in exchange for co-branded space on J.
Jill catalog inserts, J. Jill will receive from Yahoo! targeted e-mail addresses
for use in its direct e-mail marketing campaign.
Mr. Cooke continued, "Our agreement with Yahoo! Shopping offers us exposure to
millions of new potential customers, and is an important step in our marketing
efforts to drive traffic to the J. Jill Web site and build our online brand
awareness. Additionally, the arrangement represents another way in which we are
working toward increasing our customer reach."
OVERVIEW
Mr. Cooke concluded, "Although we are disappointed with having to reduce our
short-term expectations, we remain excited about the future of the J. Jill
brand. The merchandising, fulfillment and communications expertise we have
developed through our catalog business leaves us well positioned to expand our
customer reach. With our retail and e-commerce expansion efforts well underway,
we have taken definitive steps aimed at continuing to build J. Jill into a
premier national brand."
This press release contains certain forward-looking statements with respect to
the future performance of The J. Jill Group that involve risks and
uncertainties. Various factors could cause the results of the Company to be
materially different from any future results expressed or implied by such
forward-looking
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statements. Such factors include, but are not limited to the following: the
success or failure of the J. Jill retail store and e-commerce initiatives; the
impact of the repositioning of the Nicole Summers concept; the success or
failure of new customer acquisition efforts; failure of the Company or its
significant vendors to become Year 2000 compliant; significant changes in
customer response rates; change in competition in the apparel industry; general
economic and business conditions; success or failure of operating initiatives;
the ability of the Company to effectively liquidate its overstocked merchandise;
changes in consumer spending and consumer preferences; changes in business
strategy; possible future increases in expenses; the existence or absence of
brand awareness; the existence or absence of publicity, advertising and
promotional efforts; availability, terms and deployment of capital; quality of
management; business abilities and judgement of personnel; availability of
qualified personnel; labor and employee benefit costs; changes in, or failure to
comply with, government regulations and other factors.
CONTACT: The J. Jill Group
Olga L. Conley
Chief Financial Officer
781/740-2718
URL:http://www.jjillgroup.com
or
Morgen-Walke Associates,Inc.
Investor Relations:
Stacey Bibi/Janis Golubock/
Caroline Eustace
Press: Michael McMullan
212/850-5600
