JJill Inc
For the period ended Aug 3, 2024. Filed Sep 4, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 3, 2024 · Filed Sep 4, 2024
JILL$22.39-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-05-04; filed 2024-06-07.
0000950170-24-070236
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-08-03; filed 2024-09-04.
0000950170-24-103118
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 130 current paragraphs.
75 unchanged; 27 reworded; 22 added; 2 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Represents loss on the prepayment of a portion of the term loan (the “Term Loan Credit Agreement” and, such facility, the “Term Loan Facility”).
Current report
(h)
Current report
SG&A expenses for the thirteen weeks ended August 3, 2024 increased $2.0 million, or 2.4%, to $86.3 million from $84.3 million for the thirteen weeks ended July 29, 2023. The increase was primarily driven by a $1.0 million increase in payroll and related expenses and $0.9 million increase in information systems costs, primarily related to the recent system implementation projects.
Current report
For the thirteen weeks ended August 3, 2024 and July 29, 2023, the Company recorded an immaterial amount of noncash impairment charges.
Current report
Loss on Extinguishment of Debt
Current report
For the thirteen weeks ended August 3, 2024, the Company recognized a loss on debt extinguishment of $8.6 million related to the voluntary prepayment of a portion of the Term Loan Credit Agreement. No such loss was incurred by the Company during the thirteen weeks ended July 29, 2023.
Current report
Twenty-six weeks ended August 3, 2024 Compared to Twenty-six weeks ended July 29, 2023
Current report
Net Sales
Current report
Retail contributed 53.0% of our net sales in the twenty-six weeks ended August 3, 2024 and 54.8% in the twenty-six weeks ended July 29, 2023. Our Direct channel contributed 47.0% of our net sales in the twenty-six weeks ended August 3, 2024 and 45.2% in the twenty-six weeks ended July 29, 2023.
Current report
Gross profit for the twenty-six weeks ended August 3, 2024 increased $6.4 million, or 2.9%, to $227.1 million from $220.7 million for the twenty-six weeks ended July 29, 2023. The gross margin for the twenty-six weeks ended August 3, 2024 was 71.7% compared to 71.9% for the twenty-six weeks ended July 29, 2023. The increase in gross profit and decrease in gross margin for the twenty-six weeks ended August 3, 2024 was primarily driven by an increase in net sales of 3.2%, offset by higher freight costs incurred to mitigate disruptions created by global conflicts compared to the twenty-six weeks ended July 29, 2023.
Current report
As a percentage of net sales, SG&A expenses were 55.4% for the twenty-six weeks ended August 3, 2024 compared to 54.5% for the twenty-six weeks ended July 29, 2023.
Current report
Impairment of long-lived assets
Current report
Loss on Extinguishment of Debt
Current report
For the twenty-six weeks ended August 3, 2024, the Company recognized a loss on extinguishment of debt of $8.6 million related to the voluntary prepayment of a portion of the Term Loan Credit Agreement. No such loss was incurred by the Company during the twenty-six weeks ended July 29, 2023.
Current report
Interest Expense
Current report
Interest expense was $10.2 million and $12.3 million for the twenty-six weeks ended August 3, 2024 and July 29, 2023, respectively. The decrease was primarily due to a lower debt balance for the twenty-six weeks ended August 3, 2024.
Current report
Interest Income
Current report
Income Tax Provision
Current report
On June 14, 2024, the Company issued and sold 1,000,000 shares of its common stock. The shares were offered at an offering price of $31.00 per share, less underwriting discounts and commissions. The Company utilized the net proceeds from its sale of shares for repayment of its debt and general corporate purposes. See Note 8. Shareholders’ Equity to the condensed consolidated financial statements included in this Quarterly Report for additional information on the Company’s common stock issuance.
Current report
Subsequently, on August 20, 2024, the Company issued 3,317,488 shares of common stock following the exercise of 3,318,443 warrants. The exercise price of the warrants was net share settled as per the terms of the Warrant Agreement. As a result of this transaction, the number of shares outstanding increased to 15,084,356 and the number of warrants outstanding decreased to 255,265. As the exercise of the warrants is near certain due to its non-substantive exercise price in relation to the fair value of the common shares issuable upon exercise, the exercise of these warrants has no impact on net income per common share, both basic and diluted.
Current report
In connection with the voluntary principal prepayments discussed above, for the thirteen and twenty-six weeks ended August 3, 2024, the Company recognized a loss on extinguishment of debt of approximately $8.6 million, consisting of $6.0 million of accelerated amortization of the discount and fees and $2.6 million of prepayment premium, in its condensed consolidated statements of operations and comprehensive income. As of August 3, 2024, the remaining Term Loan Facility principal balance was $78.7 million, which is to be repaid in two quarterly principal payments of $2.2 million through January 31, 2025, with the remaining balance of $74.3 million to be paid upon maturity on May 8, 2028. The remaining unamortized discount and fees of $5.5 million will continue to be amortized over the remaining term through maturity. See Note 5. Debt to the condensed consolidated financial statements included in this Quarterly Report for additional information.
Current report
On May 14, 2024, the Board declared a quarterly cash dividend of $0.07 per share of common stock (the “Dividend”). The Dividend was paid on June 12, 2024, to all holders of record of issued and outstanding shares of the Company’s common stock as of the close of business on May 29, 2024. During the thirteen and twenty-six weeks ended August 3, 2024, the Company paid $0.8 million in dividends. The Company may pay dividends on its common stock only from net profits and surplus as determined under Delaware state law. Given the current financial position, the Dividend was paid from Additional paid-in capital rather than retained earnings as reflected in the condensed consolidated statements of shareholders’ equity for the thirteen and twenty-six weeks ended August 3, 2024.
Removed paragraphs (2)
Previous report
Selling, General and Administrative Expenses
Previous report
Following the May 10, 2024 prepayment discussed above, The Term Loan Facility is to be repaid in quarterly principal payments of $2.2 million from August 2, 2024 to January 31, 2025, and the balance of $101.5 million on the Term Loan Facility due upon maturity on May 8, 2028. See Note 5. Debt to the condensed consolidated financial statements included in this Quarterly Report for additional information.
Reworded paragraphs (27)
Previous wording
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA Margin. Adjusted EBITDA represents net income plus depreciation and amortization, provision for income taxes, interest expense, interest expense - related party, interest income, equity-based compensation expense, write-off of property and equipment, amortization of cloud-based software implementation costs, loss on debt refinancing, adjustment for exited retail stores, impairment of long-lived assets and other non-recurring expenses, primarily consisting of outside legal and professional fees associated with certain non-recurring transactions and events. We present Adjusted EBITDA on a consolidated basis because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance of our business and for evaluating on a quarterly and annual basis actual results against such expectations. Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and as such, use it internally to report results. Adjusted EBITDA margin represents, for any period, Adjusted EBITDA as a percentage of net sales.
Current wording
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA Margin. Adjusted EBITDA represents net income plus depreciation and amortization, income tax provision, interest expense, interest expense - related party, interest income, equity-based compensation expense, write-off of property and equipment, amortization of cloud-based software implementation costs, loss on extinguishment of debt, loss on debt refinancing, adjustment for exited retail stores, impairment of long-lived assets and other non-recurring items, primarily consisting of outside legal and professional fees associated with certain non-recurring transactions and events. We present Adjusted EBITDA on a consolidated basis because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance of our business and for evaluating on a quarterly and annual basis actual results against such expectations. Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and as such, use it internally to report results. Adjusted EBITDA margin represents, for any period, Adjusted EBITDA as a percentage of net sales.
Previous wording
Represents expenses associated with equity incentive instruments granted to our management and board of directors (“Board”). Incentive instruments are accounted for as equity-classified awards with the related compensation expense recognized based on fair value at the date of the grant.
Current wording
Represents expenses associated with equity incentive instruments granted to our management and Board of Directors (the “Board”). Incentive instruments are accounted for as equity-classified awards with the related compensation expense recognized based on fair value at the date of the grant.
Previous wording
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within Selling, general and administrative expenses. Adjusted EBITDA for the thirteen weeks ended April 29, 2023 has been restated to include such adjustments to Net income.
Current wording
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within Selling, general and administrative expenses. Adjusted EBITDA for the thirteen and twenty-six weeks ended July 29, 2023 has been restated to include such adjustments to Net income.
Previous wording
Represents impairment of long-lived assets related to leasehold improvements at certain store locations.
Current wording
Represents impairment of long-lived assets related to right of use assets and leasehold improvements.
Previous wording
Net sales for the thirteen weeks ended May 4, 2024 increased $11.3 million, or 7.5%, to $161.5 million from $150.2 million for the thirteen weeks ended April 29, 2023. At the end of those same periods, we operated 244 and 245 retail stores, respectively. The increase in net sales was primarily due to the benefit of approximately $7.0 million from the calendar shift for the thirteen weeks ended May 4, 2024 and total company comparable sales increase of 3.1% compared to the thirteen weeks ended April 29, 2023.
Current wording
Net sales for the thirteen weeks ended August 3, 2024 decreased $1.4 million, or 0.9%, to $155.2 million from $156.6 million for the thirteen weeks ended July 29, 2023. At the end of those same periods, we operated 244 and 245 retail stores, respectively. The decrease in net sales was primarily due to the impact of approximately $7.0 million from the calendar shift for the thirteen weeks ended August 3, 2024 mostly offset by total company comparable sales increase of 1.7% compared to the thirteen weeks ended July 29, 2023.
Previous wording
Retail contributed 53.0% of our net sales in the thirteen weeks ended May 4, 2024 and 54.7% in the thirteen weeks ended April 29, 2023. Our Direct channel contributed 47.0% of our net sales in the thirteen weeks ended May 4, 2024 and 45.3% in the thirteen weeks ended April 29, 2023.
Current wording
Retail contributed 52.9% of our net sales in the thirteen weeks ended August 3, 2024 and 55.0% in the thirteen weeks ended July 29, 2023. Our Direct channel contributed 47.1% of our net sales in the thirteen weeks ended August 3, 2024 and 45.0% in the thirteen weeks ended July 29, 2023.
Previous wording
Gross profit for the thirteen weeks ended May 4, 2024 increased $9.4 million, or 8.6%, to $117.7 million from $108.4 million for the thirteen weeks ended April 29, 2023. The gross margin for the thirteen weeks ended May 4, 2024 was 72.9% compared to 72.1% for the thirteen weeks ended April 29, 2023. The increase in gross profit and gross margin for the thirteen weeks ended May 4, 2024 was primarily driven by an increase in net sales of 7.5% and a stronger mix of sales at full price, compared to the thirteen weeks ended April 29, 2023.
Current wording
Gross profit for the thirteen weeks ended August 3, 2024 decreased $3.0 million, or 2.6%, to $109.4 million from $112.4 million for the thirteen weeks ended July 29, 2023. The gross margin for the thirteen weeks ended August 3, 2024 was 70.5% compared to 71.7% for the thirteen weeks ended July 29, 2023. The decrease in gross profit and gross margin for the thirteen weeks ended August 3, 2024 was primarily driven by the impact of the calendar shift as well as higher freight costs incurred to mitigate disruptions created by global conflicts compared to the thirteen weeks ended July 29, 2023.
Previous wording
As a percentage of net sales, SG&A expenses were 55.2% for the thirteen weeks ended May 4, 2024 and April 29, 2023.
Current wording
As a percentage of net sales, SG&A expenses were 55.6% for the thirteen weeks ended August 3, 2024 and 53.8% for the thirteen weeks ended July 29, 2023.
Previous wording
Interest expense was $6.4 million and $5.6 million for the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively. The increase was due to higher interest rate partially offset by a lower principal balance for the thirteen weeks ended May 4, 2024.
Current wording
Interest expense was $3.7 million and $6.6 million for the thirteen weeks ended August 3, 2024 and July 29, 2023, respectively. The decrease was due to a lower debt balance for the thirteen weeks ended August 3, 2024.
Previous wording
The income tax provision was $6.2 million for the thirteen weeks ended May 4, 2024 compared to $2.0 million for the thirteen weeks ended April 29, 2023, while our effective tax rates for the same periods were 27.2% and 29.9%, respectively. The effective tax rate during the thirteen weeks ended May 4, 2024 is lower primarily due to the impact of state and local income taxes and executive compensation limitations.
Current wording
The income tax provision was $3.1 million for the thirteen weeks ended August 3, 2024 compared to $6.7 million for the thirteen weeks ended July 29, 2023, while our effective tax rates for the same periods were 27.3% and 30.5%, respectively. The effective tax rate during the thirteen weeks ended August 3, 2024 is lower primarily due to the impact of state and local income taxes and executive compensation limitations.
Previous wording
SG&A expenses for the thirteen weeks ended May 4, 2024 increased $6.1 million, or 7.4%, to $89.1 million from $83.0 million for the thirteen weeks ended April 29, 2023. The increase was primarily driven by a $2.5 million increase in marketing costs, mainly due to timing of catalog production and mailing costs, $1.6 million increase in compensation, benefits and management incentive expense, $0.8 million increase in professional fees and $0.6 million increase in shipping costs compared to the thirteen weeks ended April 29, 2023.
Current wording
SG&A expenses for the twenty-six weeks ended August 3, 2024 increased $8.2 million, or 4.9%, to $175.4 million from $167.3 million for the twenty-six weeks ended July 29, 2023. The increase was primarily driven by a $3.4 million increase in compensation, benefits and management incentive expense, $1.6 million increase in marketing costs, $1.5 million increase in professional services, $1.0 million increase in information systems costs, and $0.9 million increase in outbound shipping costs, partially offset by lower occupancy costs of $0.3 million compared to the twenty-six weeks ended July 29, 2023.
Previous wording
For the thirteen weeks ended May 4, 2024, the Company recorded noncash impairment charges of $0.3 million related to leasehold improvements at certain store locations. No impairment charges were recorded for the thirteen weeks ended April 29, 2023.
Current wording
For the twenty-six weeks ended August 3, 2024, the Company recorded noncash impairment charges of $0.3 million primarily related to leasehold improvements at certain store locations. The Company recorded an immaterial amount of impairment charges for the twenty-six weeks ended July 29, 2023.
Previous wording
During the thirteen weeks ended April 29, 2023, the Company recognized a loss on debt refinancing of $12.7 million related to entering into a term loan credit agreement (the “Term Loan Credit Agreement” and, such facility, the “Term Loan Facility”) and the repayment of the Priming Credit Agreement and the Subordinated Credit Agreement. The Company did not incur any gain or loss on debt refinancing during the thirteen weeks ended May 4, 2024.
Current wording
During the twenty-six weeks ended July 29, 2023, the Company recognized a loss on debt refinancing of $12.7 million related to entering into the Term Loan Credit Agreement and the repayment of the Priming Credit Agreement and the Subordinated Credit Agreement. No such loss was incurred by the Company during the twenty-six weeks ended August 3, 2024.
Previous wording
Interest expense consists of interest expense on the Term Loan Credit Agreement and asset-based revolving credit facility agreement (the “ABL Credit Agreement” and, such facility, the “ABL Facility”) for the thirteen weeks ended May 4, 2024, and, on the Company’s Term Loan Credit Agreement, Priming Credit Agreement prior to repayment in full on April 5, 2023, and ABL Facility for the thirteen weeks ended April 29, 2023.
Current wording
Interest expense consists of interest expense on the Term Loan Credit Agreement for the twenty-six weeks ended August 3, 2024, and, on the Company’s Term Loan Credit Agreement, Priming Credit Agreement prior to repayment in full on April 5, 2023, and ABL Facility for the twenty-six weeks ended July 29, 2023.
Previous wording
For the thirteen weeks ended April 29, 2023, the Company incurred $1.1 million of Interest expense - related party associated with the Subordinated Credit Agreement, until it was repaid in full on April 5, 2023. The Company did not incur any Interest expense - related party during the thirteen weeks ended May 4, 2024.
Current wording
For the twenty-six weeks ended July 29, 2023, the Company incurred $1.1 million of Interest expense - related party associated with the Subordinated Credit Agreement, until it was repaid in full on April 5, 2023. The Company did not incur any Interest expense - related party during the twenty-six weeks ended August 3, 2024.
Previous wording
For the thirteen weeks ended May 4, 2024, the Company earned interest on cash of $1.0 million, compared to $0.6 million for the thirteen weeks ended April 29, 2023.
Current wording
For the twenty-six weeks ended August 3, 2024, the Company earned interest on cash of $1.5 million, compared to $1.0 million for the twenty-six weeks ended July 29, 2023.
Previous wording
Our primary sources of liquidity and capital resources are cash and cash equivalents generated from operating activities and availability under our ABL Facility, so long as certain conditions related to the maturity of the Term Loan Credit Agreement are met. As of May 4, 2024, we had $77.1 million in cash and $35.7 million of total availability under our ABL Facility. In addition, through our shelf registration statement on file with the SEC, depending on conditions prevailing in the public capital markets, we may from time to time issue equity securities in one or more series in one or more offerings.
Current wording
Our primary sources of liquidity and capital resources are cash and cash equivalents generated from operating activities and availability under our ABL Facility, so long as certain conditions related to the maturity of the Term Loan Credit Agreement are met. As of August 3, 2024, we had $28.5 million in cash and $35.7 million of total availability under our ABL Facility. In addition, through our shelf registration statement on file with the SEC or through private transactions, and depending on conditions prevailing in the public and private capital markets, we may from time to time issue equity securities in one or more series in one or more offerings.
Previous wording
On May 10, 2024, the Company made a voluntary principal prepayment on the Term Loan Credit Agreement of $58.2 million. Together with the required quarterly payment of $2.2 million that the Company made on April 26, 2024, the Company has repaid $60.4 million of debt under the Term Loan Credit Agreement in Fiscal Year 2024. In addition, the Company paid a $1.7 million premium, amounting to 3% on the aggregate principal amount being prepaid, and $0.8 million towards interest in accordance with the provisions of the Term Loan Credit Agreement. The voluntary prepayment was in lieu of the Excess Cash Flow payment of $26.6 million, which was rejected by the lenders as permitted under the provisions of the Term Loan Credit Agreement.
Current wording
On May 10, 2024, the Company made a voluntary principal prepayment of $58.2 million on the Term Loan Credit Agreement, in lieu of the previously expected excess cash flow payment of $26.6 million. The expected excess cash flow payment was rejected by the lenders as permitted under the provisions of the Term Loan Credit Agreement. On June 21, 2024, the Company made an additional voluntary principal prepayment of $27.2 million (See Note 8. Shareholders’ Equity, Common Stock Issuance, for additional information). Together with the required quarterly payments, the Company has repaid $89.8 million in principal under the Term Loan Credit Agreement in Fiscal Year 2024. In connection with both of the voluntary principal prepayments, the Company paid a $2.6 million premium, amounting to 3% on the aggregate principal amount being prepaid, and $1.6 million towards interest, in accordance with the provisions of the Term Loan Credit Agreement.
Previous wording
As of May 4, 2024, the Company is in compliance with all covenants.
Current wording
As of August 3, 2024, the Company is in compliance with all covenants contained in its outstanding debt arrangements.
Previous wording
Net cash provided by operating activities increased by $13.6 million during the thirteen weeks ended May 4, 2024 compared to the thirteen weeks ended April 29, 2023. The increase during the thirteen weeks ended May 4, 2024 was driven primarily by higher net income, and cash from working capital of $14.5 million. The increase in net cash from working capital was driven primarily by changes in accrued expenses and other current liabilities of $15.8 million, mainly consisting of management incentives of $4.1 million, the timing of payments relating to income taxes of $2.8 million, interest on debt of $2.6 million, payroll of $2.0 million, outbound shipping of $1.7 million and, sales returns reserve of $0.8 million, and other net expenses, as well as lower cash outflows of $3.3 million related to inventory. This increase in net cash from working capital was partially offset by timing of payments relating to accounts receivable of $4.8 million.
Current wording
Net cash provided by operating activities increased by $2.3 million during the twenty-six weeks ended August 3, 2024 compared to the twenty-six weeks ended July 29, 2023. The increase during the twenty-six weeks ended August 3, 2024 was driven by higher net income of $5.1 million, lower adjustments to reconcile net income to net cash from operation of $7.1 million, and an increase in cash from working capital of $4.2 million. The increase in net cash from working capital was driven primarily by changes in accrued expenses and other current liabilities of $6.8 million, mainly consisting of management incentives of $3.8 million, $2.1 million due to payment timing of interest on debt and corporate expenses, outbound shipping costs, information systems costs, and the timing of payments relating to income taxes of $1.1 million, partially offset by lower sales returns reserve of $1.7 million, timing of payments relating to accounts payable of $5.9 million, and changes in other non current assets and liabilities of $0.3 million. The increase in net cash from working capital was partially offset by timing of payments relating to inventory of $4.3 million, accounts receivable of $3.4 million, and prepaid expenses and other current assets of $1.2 million.
Previous wording
Net cash provided by operating activities during the thirteen weeks ended May 4, 2024 was $21.5 million. Key elements of cash provided by operating activities were (i) net income of $16.7 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $7.6 million, primarily driven by depreciation and amortization and equity-based compensation, and (iii) uses of cash totaling $2.8 million for net operating assets and liabilities.
Current wording
Net cash provided by operating activities during the twenty-six weeks ended August 3, 2024 was $37.9 million. Key elements of cash provided by operating activities were (i) net income of $24.9 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $21.7 million, primarily driven by depreciation and amortization, loss on extinguishment of debt and equity-based compensation, and (iii) uses of cash totaling $8.7 million for net operating assets and liabilities.
Previous wording
Net cash provided by operating activities during the thirteen weeks ended April 29, 2023 was $7.9 million. Key elements of cash provided by operating activities were (i) net income of $4.6 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $20.6 million, primarily driven by loss on debt refinancing and depreciation and amortization, and (iii) uses of cash totaling $17.3 million for net operating assets and liabilities.
Current wording
Net cash provided by operating activities during the twenty-six weeks ended July 29, 2023 was $35.6 million. Key elements of cash provided by operating activities were (i) net income of $19.8 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $28.7 million, primarily driven by loss on debt refinancing and depreciation and amortization, and (iii) uses of cash totaling $12.9 million for net operating assets and liabilities.
Previous wording
Net cash used in investing activities during the thirteen weeks ended May 4, 2024 and April 29, 2023 was $2.3 million and $2.9 million, respectively, representing purchases of property and equipment related investments in stores and software and technology related investments.
Current wording
Net cash used in investing activities during the twenty-six weeks ended August 3, 2024 and July 29, 2023 was $4.6 million and $7.1 million, respectively, representing purchases of property and equipment related investments in stores and software and technology related investments.
Previous wording
Net cash used in financing activities was $4.2 million for the thirteen weeks ended May 4, 2024 compared to $64.1 million for the thirteen weeks ended April 29, 2023. The cash used in financing activities for the thirteen weeks ended April 29, 2023 was higher primarily due to the repayment of the previously existing Priming and Subordinated Credit Agreements offset by the proceeds from the issuance of the Term Loan Credit Agreement.
Current wording
Net cash used in financing activities was $67.0 million for the twenty-six weeks ended August 3, 2024 compared to $66.7 million for the twenty-six weeks ended July 29, 2023. Net cash used in financing activities for the twenty-six weeks ended August 3, 2024 primarily consisted of voluntary prepayments under the Term Loan Credit Agreement partially offset by the proceeds from the issuance of common stock. Net cash used in financing activities for the twenty-six weeks ended July 29, 2023 consisted of repayment of the previously existing Priming and Subordinated Credit Agreements offset by the proceeds from the issuance of the Term Loan Credit Agreement.
Previous wording
The Company did not pay any dividends during the thirteen weeks ended May 4, 2024 and April 29, 2023, respectively.
Current wording
The Company did not pay any dividends during the thirteen and twenty-six weeks ended July 29, 2023.
Previous wording
Subsequently, on May 14, 2024, the Board declared an initial quarterly cash dividend of $0.07 per share, payable on June 12, 2024 to stockholders of record as of May 29, 2024. The Company intends to pay dividends quarterly in the future subject to market conditions and the approval by the Board of any such dividends.
Current wording
The Company intends to pay dividends quarterly in the future, subject to market conditions and the discretion and approval by the Board of any such dividends.
Previous wording
The payment of cash dividends in the future, if any, will be at the discretion of our Board and will depend upon such factors as earnings levels, capital requirements, restrictions imposed by applicable law, our overall financial condition, restrictions in our debt agreements and any other factors deemed relevant by our Board. As a holding company, our ability to pay dividends depends on our receipt of cash dividends from our operating subsidiaries, which may further restrict our ability to pay dividends as a result of restrictions on their ability to pay dividends to us, under our debt agreements and under future indebtedness that we or they may incur.
Current wording
The payment of cash dividends in the future, if any, will be at the discretion of the Board and will depend upon such factors as earnings levels, capital requirements, restrictions imposed by applicable law, our overall financial condition, restrictions in our debt agreements and any other factors deemed relevant by the Board. As a holding company, our ability to pay dividends depends on our receipt of cash dividends from our operating subsidiaries, which may further restrict our ability to pay dividends as a result of restrictions on their ability to pay dividends to us, under our debt agreements and under future indebtedness that we or they may incur.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
For the thirteen weeks ended August 3, 2024 and July 29, 2023, the Company earned interest on cash of $0.5 million.
Current report — wording carried from elsewhere
The following table summarizes our consolidated results of operations for the periods indicated:
Current report — wording carried from elsewhere
Net sales for the twenty-six weeks ended August 3, 2024 increased $9.9 million, or 3.2%, to $316.8 million from $306.9 million for the twenty-six weeks ended July 29, 2023. At the end of those same periods, we operated 244 and 245 retail stores, respectively. The increase in net sales was primarily due to total company comparable sales increase of 2.4% compared to the twenty-six weeks ended July 29, 2023.
Current report — wording carried from elsewhere
Gross Profit and Costs of Goods Sold
Current report — wording carried from elsewhere
The income tax provision was $9.3 million for the twenty-six weeks ended August 3, 2024 compared to $8.6 million for the twenty-six weeks ended July 29, 2023, while our effective tax rates for the same periods were 27.2% and 30.3%, respectively. The effective tax rate during the twenty-six weeks ended August 3, 2024 is lower primarily due to the impact of state and local income taxes and executive compensation limitations.
Current report — wording carried from elsewhere
Subsequent to August 3, 2024, on August 28, 2024, the Board declared a cash dividend of $0.07 per share, payable on October 2, 2024 to all stockholders of record as of September 18, 2024.