Group 1 - J.Jill, Inc. reported negative Q1 '25 results, with comparable store sales worsening significantly from year-end 2024 [1] - The company anticipates continued challenges in Q2, indicating a difficult operational environment ahead [1] - Margins at the merchandise level were moderately protected, but deleverage was deemed inevitable [1] Group 2 - The analysis emphasizes a long-only investment approach, focusing on operational aspects and long-term earnings power rather than market-driven dynamics [1] - The strategy involves holding companies independently of future price movements, with most calls being holds by design [1] - A small fraction of companies are considered buy opportunities at any given time, highlighting a cautious investment stance [1]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q1 2025, showing declines in net sales, net income, and operating cash flow compared to the prior year [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of May 3, 2025, total assets increased to $432.9 million, liabilities to $320.9 million, and shareholders' equity to $112.0 million Condensed Consolidated Balance Sheets (in thousands) | | May 3, 2025 | February 1, 2025 | | :--- | :--- | :--- | | **Total current assets** | $122,310 | $122,030 | | **Total assets** | $432,896 | $417,699 | | **Total current liabilities** | $124,053 | $127,108 | | **Total liabilities** | $320,923 | $311,930 | | **Total shareholders' equity** | $111,973 | $105,769 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For Q1 2025, net sales decreased 4.9% to $153.6 million, and net income fell 30.0% to $11.7 million, with diluted EPS at $0.76 Statement of Operations Highlights (in thousands, except per share data) | Metric | For the Thirteen Weeks Ended May 3, 2025 | For the Thirteen Weeks Ended May 4, 2024 | | :--- | :--- | :--- | | Net sales | $153,624 | $161,513 | | Gross profit | $110,357 | $117,737 | | Operating income | $19,062 | $28,372 | | Net income | $11,692 | $16,696 | | Diluted EPS | $0.76 | $1.16 | | Cash dividends declared per common share | $0.08 | $— | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to $5.3 million, while cash used in investing and financing activities increased for Q1 2025 Cash Flow Summary (in thousands) | Activity | For the Thirteen Weeks Ended May 3, 2025 | For the Thirteen Weeks Ended May 4, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,336 | $21,499 | | Net cash used in investing activities | $(2,724) | $(2,312) | | Net cash used in financing activities | $(6,794) | $(4,242) | | **Net change in cash and cash equivalents** | **$(4,182)** | **$14,945** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue disaggregation by channel, debt, share repurchase, dividend programs, and share-based compensation - Effective March 2025, the company revised its Direct sales returns reserve methodology and reduced the return window, with **no material impact**[37](index=37&type=chunk) Disaggregation of Revenue (in thousands) | Channel | For the Thirteen Weeks Ended May 3, 2025 | For the Thirteen Weeks Ended May 4, 2024 | | :--- | :--- | :--- | | Retail | $81,813 | $85,607 | | Direct | $71,811 | $75,906 | | **Net sales** | **$153,624** | **$161,513** | - The company repurchased **186,800 shares** for **$3.5 million** under its share repurchase program, with **$21.0 million** remaining available as of May 3, 2025[74](index=74&type=chunk)[75](index=75&type=chunk) - A quarterly cash dividend of **$0.08 per share**, totaling **$1.2 million**, was paid, with a subsequent dividend declared on June 3, 2025[77](index=77&type=chunk)[79](index=79&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 net sales and gross margin declines to lower full-price sales and increased promotions, resulting in a 30.0% drop in net income [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q1 2025 net sales decreased 4.9% to $153.6 million, gross profit fell 6.3% to $110.4 million, and operating income declined 32.8% to $19.1 million Q1 2025 vs Q1 2024 Performance (in thousands) | Metric | Q1 2025 (Thirteen Weeks Ended May 3, 2025) | Q1 2024 (Thirteen Weeks Ended May 4, 2024) | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net sales | $153,624 | $161,513 | $(7,889) | (4.9)% | | Gross profit | $110,357 | $117,737 | $(7,380) | (6.3)% | | SG&A expenses | $91,088 | $89,112 | $1,976 | 2.2% | | Operating income | $19,062 | $28,372 | $(9,310) | (32.8)% | | Net income | $11,692 | $16,696 | $(5,004) | (30.0)% | - Net sales decreased primarily due to a **5.7%** decline in comparable sales, driven by lower full-price mix and increased promotions[132](index=132&type=chunk) - Gross margin decreased from **72.9%** to **71.8%** due to lower full-price mix and increased promotional activities[134](index=134&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of May 3, 2025, the company had $31.2 million in cash and $35.7 million ABL availability, with operating cash flow decreasing to $5.3 million - As of May 3, 2025, the company held **$31.2 million** in cash and **$35.7 million** available under its ABL Facility[141](index=141&type=chunk) - In Fiscal Year 2024, the company made voluntary principal prepayments totaling **$85.4 million** on its Term Loan Credit Agreement[145](index=145&type=chunk) - Net cash from operating activities decreased by **$16.1 million** to **$5.3 million**, driven by a **$5.0 million** drop in net income and a **$9.5 million** negative change in working capital[149](index=149&type=chunk) - Net cash used in financing activities totaled **$6.8 million**, primarily for share repurchases (**$3.5 million**), taxes (**$2.0 million**), and dividends (**$1.2 million**)[153](index=153&type=chunk)[17](index=17&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure occurred during Q1 2025 compared to the Fiscal Year 2024 Annual Report disclosures - There have been **no material changes** in the company's market risk exposure during the first quarter of Fiscal Year 2025[167](index=167&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) As of May 3, 2025, disclosure controls and procedures were deemed effective, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures are **effective** as of May 3, 2025[169](index=169&type=chunk) - **No changes** to internal control over financial reporting **materially affected** controls during Q1 Fiscal Year 2025[170](index=170&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) A class action concerning a stock repurchase program was dismissed as moot after the board amended the program, with the company paying $450,000 in fees - A class action complaint was filed on December 19, 2024, alleging **breach of fiduciary duties** related to a stock repurchase program[172](index=172&type=chunk) - To resolve litigation, the board **amended the repurchase program** to prevent TowerBrook Funds from owning more than **49.9%** of voting stock[173](index=173&type=chunk) - The action was **dismissed as moot**, and the company agreed to pay **$450,000** in attorneys' fees and expenses[175](index=175&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) As of the filing date, there have been no material changes to the risk factors previously disclosed in the Fiscal Year 2024 Annual Report - As of this Quarterly Report, there have been **no material changes** to previously disclosed risk factors in the 2024 Annual Report[178](index=178&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Under its $25.0 million program, the company repurchased 186,800 shares for $3.5 million, with $21.0 million remaining available Share Repurchase Activity (Thirteen weeks ended May 3, 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Value Remaining ($) | | :--- | :--- | :--- | :--- | | Feb 2 - Mar 1, 2025 | — | $— | $24,477,079 | | Mar 2 - Apr 5, 2025 | 186,800 | $18.84 | $20,957,463 | | Apr 6 - May 3, 2025 | — | $— | $20,957,463 | | **Total** | **186,800** | | **$20,957,463** | [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section discloses that CEO Claire Spofford and CFO Mark Webb entered into Rule 10b5-1 trading plans for potential share sales - CEO Claire Spofford entered a Rule 10b5-1 trading plan for the potential sale of up to **67,500 shares** of common stock[182](index=182&type=chunk) - CFO Mark Webb entered a Rule 10b5-1 trading plan for the potential sale of up to **30,000 shares** of common stock[184](index=184&type=chunk)

J.Jill (JILL) Q1 2026 Earnings Call June 11, 2025 08:00 AM ET Company Participants Mary Ellen Coyne - President & CEOMark Webb - EVP, CFO & COODana Telsey - CEO & Chief Research OfficerJonna Kim - DirectorCorey Tarlowe - SVP - Equity ResearchMarni Shapiro - Managing Partner Conference Call Participants Janine Stichter - Managing Director & Analyst - Consumer Retail & Lifestyle Brands Operator Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At ...

Financial Data and Key Metrics Changes - Total company sales for Q1 2025 were approximately $154 million, down 4.9% compared to Q1 2024, with comparable sales declining 5.7% [13][14] - Q1 gross profit was about $110 million, a decrease of $7 million compared to Q1 2024, with a gross margin of 71.8%, down 110 basis points year-over-year [14][15] - Adjusted EBITDA for the quarter was $27.3 million, compared to $35.6 million in Q1 2024, while adjusted net income per diluted share was $0.88, down from $1.22 last year [15][16] - Cash generated from operations was about $5.3 million, resulting in ending cash of approximately $31 million with no borrowings against the ABL [16][22] Business Line Data and Key Metrics Changes - Store sales for Q1 were down about 4.4% compared to Q1 2024, while direct sales, representing about 47% of total sales, were down 5.4% [14] - The increase in SG&A expenses was primarily driven by store expenses associated with five new stores and OMS-related costs, totaling approximately $91 million for the quarter [15] Market Data and Key Metrics Changes - The macroeconomic environment remained volatile, impacting customer behavior, particularly in April and May, leading to a more discerning customer spending pattern [12][13] - Total reported inventories were up about 14% at the end of Q1 compared to the previous year, primarily due to an extra week in the supply chain initiated last year [17] Company Strategy and Development Direction - The company is focused on leveraging investments made in stores, marketing, and systems, with a commitment to maintaining a disciplined approach to inventory management and strategic pricing [9][20] - The new CEO emphasized the importance of building authentic connections with customers and identified opportunities for multichannel expansion and product assortment improvements [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resiliency of the customer base but acknowledged near-term uncertainties related to tariffs and macroeconomic conditions [13][20] - The company has withdrawn its prior full-year guidance to allow the new CEO time to assess the business and develop future strategies [19][56] Other Important Information - The company plans to maintain its quarterly dividend of $0.08 per share and continue share repurchase activities, with approximately $21 million remaining on the repurchase authorization [21][22] - The OMS system cutover was successful, although it had a slightly larger impact on Q1 performance than anticipated, with ongoing efforts to ramp up ship-from-store capabilities [12][38] Q&A Session Summary Question: What strategies were implemented during tariffs at J. McLaughlin, and what are the opportunities for J. Jill? - Management discussed strategies around tariff exposure, including vendor negotiations and order adjustments, while emphasizing the importance of newness in the product assortment [28][30] Question: How is the company planning to roll out new products while managing tariff dynamics? - The company is making small adjustments to the product line and focusing on inventory positioning to align with current demand trends [43][45] Question: What are the plans for new store openings and their performance? - The company has lowered its new store opening guidance due to timing but remains optimistic about long-term growth opportunities, with new stores performing in line with expectations [75][76]

EXHIBIT 99.1 J.JILL, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS Q1 FY25 Performance Reflects Disciplined Operating Model Q1 FY25 Net Sales of $153.6 Million Q1 FY25 Gross Margin of 71.8% Quincy, Mass – June 11, 2025 – J.Jill, Inc. (NYSE:JILL) ("J.Jill" or the "Company") today announced financial results for the first quarter of fiscal year 2025. "J.Jill is a brand with a long history, an extremely loyal core customer, and so much opportunity ahead, and I am thrilled to join the team as its new CEO," said Mar ...

Core Insights - J.Jill, Inc. is expected to report a decline in quarterly earnings to 87 cents per share, down from $1.22 per share in the same period last year [1] - Projected quarterly revenue is $156.77 million, a decrease from $161.51 million a year earlier [1] Dividend Information - J.Jill currently offers an annual dividend yield of 1.87%, translating to a quarterly dividend of $0.08 per share [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 18,750 shares, equating to a total investment of about $321,563 [3] - For a more conservative monthly income goal of $100, an investor would need 3,750 shares, or an investment of around $64,313 [3] Dividend Yield Dynamics - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate [4] - Changes in stock price directly affect the dividend yield; for instance, if the stock price rises, the yield decreases, and vice versa [4] - The dividend payment itself can also change, impacting the yield; an increase in dividend payment raises the yield if the stock price remains constant [5] Stock Performance - J.Jill shares increased by 1.7%, closing at $17.15 on the previous Monday [5] - Telsey Advisory Group's analyst Dana Telsey has maintained a Market Perform rating on J.Jill with a price target of $21 [6]

Core Viewpoint - The market anticipates a year-over-year decline in J.Jill's earnings due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - J.Jill is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year decrease of 27.9%, and revenues are projected at $156.67 million, down 3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.51% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for J.Jill is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.71%, although the stock has a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, J.Jill exceeded the expected earnings of $0.22 per share by delivering $0.32, resulting in a surprise of +45.45%. The company has beaten consensus EPS estimates in the last four quarters [13][14]. Conclusion - While J.Jill does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

Core Insights - J.Jill (JILL) has consistently surpassed earnings estimates and is well-positioned for future earnings reports [1][2] Earnings Performance - In the last two quarters, J.Jill has exceeded earnings estimates by an average of 28.35% [2] - For the most recent quarter, J.Jill reported earnings of $0.32 per share, exceeding the expected $0.22 per share by 45.45% [3] - In the previous quarter, the company reported $0.89 per share against an estimate of $0.80 per share, resulting in a surprise of 11.25% [3] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for J.Jill, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6][9] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7] - J.Jill currently has an Earnings ESP of +1.71%, suggesting analysts are optimistic about the company's earnings prospects [9] Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] - It is crucial for investors to check a company's Earnings ESP before quarterly releases to improve the chances of successful investment decisions [10]

Part I [Business](index=7&type=section&id=Item%201.%20Business) J.Jill is a national lifestyle brand targeting affluent women aged 45 and older, operating a balanced omnichannel model with retail stores and direct-to-consumer channels - J.Jill is a national lifestyle brand targeting affluent women aged 45 and older with a median household income of approximately **$150,000**[22](index=22&type=chunk)[24](index=24&type=chunk) FY2024 Sales Channel Distribution | Channel | Percentage of Net Sales | | :--- | :--- | | Retail | ~52% | | Direct (Ecommerce/Catalog) | ~48% | - The company operates **252 stores** across **42 states** as of February 1, 2025, and returned to net store growth in Fiscal Year 2024[33](index=33&type=chunk)[37](index=37&type=chunk) - Growth strategy includes attracting new customers, increasing direct sales, and strategically adding a net of **50 new stores** over the next three to five years[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - In Fiscal Year 2024, approximately **81% of products were sourced through agents** and **19% directly from suppliers**, with India, Indonesia, and Vietnam being the top three sourcing countries by volume[56](index=56&type=chunk)[57](index=57&type=chunk) - As of February 1, 2025, the company employed **1,123 full-time** and **2,126 part-time associates**[65](index=65&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from macroeconomic conditions, intense competition, supply chain dependencies, and financial leverage - Business is sensitive to macroeconomic conditions, consumer discretionary spending, and economic downturns, which can negatively impact sales and profitability[75](index=75&type=chunk) - The women's apparel industry is highly competitive, with pressure on pricing, brand recognition, and merchandise assortment from a variety of retailers[87](index=87&type=chunk) - The Direct channel, accounting for **48% of net sales**, is dependent on the effective operation of the e-commerce platform, making the business vulnerable to system failures, cyber-attacks, and changes in digital marketing effectiveness[88](index=88&type=chunk)[92](index=92&type=chunk) - Dependence on third-party, foreign sourcing (**81% through agents in FY2024**) creates risks related to production disruptions, shipping delays, quality control, and compliance with labor laws[111](index=111&type=chunk) - The company's Term Loan and ABL Credit Agreements contain restrictive covenants that limit operational and financial flexibility, including restrictions on incurring debt, making investments, and paying dividends[124](index=124&type=chunk) - As of February 2, 2025, the company is no longer a "smaller reporting company," which increases compliance costs and requires an audit of its internal controls over financial reporting[129](index=129&type=chunk) - Material damage to or interruptions in information systems, including security breaches of customer or employee data, could expose the company to data loss, fines, litigation, and reputational harm[147](index=147&type=chunk)[151](index=151&type=chunk) [Unresolved Staff Comments](index=46&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[175](index=175&type=chunk) [Cybersecurity](index=46&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk management is overseen by the Audit Committee and CIO, with no material incidents reported as of the filing date - Cybersecurity governance is managed by a team led by the Chief Information Officer (CIO) with oversight from the Audit Committee of the Board[178](index=178&type=chunk) - The company utilizes third-party vendors for enhanced monitoring, penetration testing, and other security assessments[179](index=179&type=chunk) - As of the filing date, the company is not aware of any cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[181](index=181&type=chunk) [Properties](index=47&type=section&id=Item%202.%20Properties) J.Jill leases its corporate headquarters, distribution center, and **252 retail stores** across **42 states**, with most store leases expiring by 2029 - The company operates **252 retail stores** in **42 states**, all of which are leased. The average store size is approximately **3,700 square feet**[183](index=183&type=chunk) Lease Expiration Schedule for Retail Stores | Fiscal Years Lease Terms Expire | Number of Stores | | :--- | :--- | | 2024 – 2026 | 112 | | 2027 – 2029 | 115 | | 2030 – 2032 | 10 | | 2033 and later | 15 | - The principal executive offices are in Quincy, MA (lease expires Dec 2027), and the **520,000 sq. ft. distribution center** is in Tilton, NH (lease expires Sep 2030)[182](index=182&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) A class action regarding a stock repurchase program was dismissed after the board amended the program, with the company paying **$450,000** in fees - A class action complaint was filed in December 2024 alleging breach of fiduciary duties related to a stock repurchase program approved in December 2024[186](index=186&type=chunk) - To resolve the litigation, the board amended the repurchase program to prevent it from causing TowerBrook's ownership to exceed **49.9%** of outstanding voting stock[187](index=187&type=chunk) - The action was dismissed, and the company agreed to pay **$450,000** in attorneys' fees and expenses to the plaintiff[188](index=188&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=49&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) J.Jill's common stock trades on NYSE; the company paid **$2.9 million** in dividends and initiated a **$25.0 million** share repurchase program in FY2024 - The company's common stock trades on the New York Stock Exchange (NYSE) under the symbol "JILL"[192](index=192&type=chunk) - In Fiscal Year 2024, the Board declared a quarterly cash dividend of **$0.07 per share**, with total dividend payments amounting to **$2.9 million**[194](index=194&type=chunk) - A share repurchase program of up to **$25.0 million** was authorized on December 6, 2024. As of February 1, 2025, the company had repurchased **19,831 shares** and had **$24.5 million** remaining under the authorization[199](index=199&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2024 net sales increased **0.5%** to **$610.9 million**, with net income rising **9.1%** to **$39.5 million**, supported by significant debt reduction and strong liquidity [Results of Operations](index=54&type=section&id=Results%20of%20Operations) FY2024 net sales increased **0.5%** to **$610.9 million**, driven by comparable sales growth, while gross margin declined to **70.4%** and net income rose **9.1%** to **$39.5 million** Consolidated Results of Operations (FY2024 vs. FY2023) | (in thousands) | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $610,857 | $608,043 | 0.5% | | Gross profit | $429,856 | $430,782 | (0.2)% | | Operating income | $75,702 | $86,050 | (12.0)% | | Net income | $39,483 | $36,201 | 9.1% | - The increase in net sales was due to a total company comparable sales increase of **1.5%**, partially offset by the loss of the 53rd week included in Fiscal Year 2023[225](index=225&type=chunk) - Gross margin decreased from **70.8%** in FY2023 to **70.4%** in FY2024, driven by an increase in promotional activities and increased freight costs[227](index=227&type=chunk) - SG&A expenses increased by **$8.8 million** (**2.6%**), primarily due to higher professional fees, stock-based compensation, shipping, and marketing costs[228](index=228&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) As of February 1, 2025, J.Jill maintained strong liquidity with **$35.4 million** cash and **$35.7 million** ABL availability, having repaid **$94.2 million** of Term Loan principal in FY2024 Liquidity Position as of Feb 1, 2025 | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $35.4 | | ABL Facility Availability | $35.7 | | Term Loan Principal Balance | $74.3 | - In Fiscal Year 2024, the company repaid **$94.2 million** in principal under the Term Loan Credit Agreement, including voluntary prepayments totaling **$85.4 million**[251](index=251&type=chunk) FY2024 Cash Flow Summary | (in thousands) | Amount | | :--- | :--- | | Net cash provided by operating activities | $65,036 | | Net cash used in investing activities | ($17,755) | | Net cash used in financing activities | ($74,026) | - In June 2024, the company completed an equity offering, selling **1,000,000 shares** and raising net proceeds of **$29.5 million**, which were used for debt repayment and general corporate purposes[239](index=239&type=chunk)[514](index=514&type=chunk)[515](index=515&type=chunk) [Critical Accounting Policies and Significant Estimates](index=60&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Estimates) Critical accounting policies involve significant estimates for revenue recognition, inventory valuation, and annual impairment assessments of long-lived assets, goodwill, and intangible assets - Critical accounting estimates include revenue recognition (sales returns, gift card breakage), inventory valuation, and impairment assessments for goodwill, intangible assets, and long-lived assets[271](index=271&type=chunk) - The company evaluates goodwill and its indefinite-lived trade name for impairment annually. A quantitative analysis is performed every three years, with a qualitative assessment in other years. The FY2024 qualitative test indicated no impairment[277](index=277&type=chunk)[285](index=285&type=chunk)[448](index=448&type=chunk) - In FY2024, the company recorded noncash impairment charges of **$0.8 million**, primarily related to leasehold improvements and a right-of-use asset for its corporate headquarters[168](index=168&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) - In January 2025, the company transitioned to a self-insured group health insurance program and accrues for costs based on known claims and estimates of incurred but not reported (IBNR) claims[294](index=294&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from **$74.3 million** in variable-rate Term Loan borrowings, with a **10%** rate change impacting FY2024 net income by **$5.8 million** - The company is subject to interest rate risk from variable-rate borrowings under its Credit Facilities, with **$74.3 million** outstanding under the Term Loan Facility as of February 1, 2025[296](index=296&type=chunk) - A **10%** change in the current interest rate would have affected net income by **$5.8 million** during Fiscal Year 2024[296](index=296&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of February 1, 2025, with an unqualified audit opinion - Management concluded that as of February 1, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[300](index=300&type=chunk) - Management assessed internal control over financial reporting using the COSO framework and concluded it was effective as of February 1, 2025[303](index=303&type=chunk) - The independent registered public accounting firm, Grant Thornton LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[304](index=304&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Principal Accountant Fees](index=67&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for Items 10-14, covering governance, compensation, and ownership, is incorporated by reference from the company's 2024 proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's definitive proxy statement for its 2024 Annual Meeting of Stockholders, to be filed within 120 days of the fiscal year-end[310](index=310&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=68&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements and an index of exhibits, including key corporate documents, filed or incorporated by reference - This section contains the index to the consolidated financial statements and a list of exhibits filed with or incorporated by reference into the Form 10-K[317](index=317&type=chunk)[319](index=319&type=chunk) Consolidated Financial Statements [Consolidated Balance Sheets](index=76&type=section&id=Consolidated%20Balance%20Sheets) As of February 1, 2025, total assets were **$417.7 million**, liabilities decreased to **$311.9 million** due to debt reduction, and shareholders' equity increased to **$105.8 million** Consolidated Balance Sheet Highlights (in thousands) | | Feb 1, 2025 | Feb 3, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$417,699** | **$428,180** | | Cash and cash equivalents | $35,427 | $62,172 | | Inventories, net | $61,295 | $53,259 | | **Total Liabilities** | **$311,930** | **$390,962** | | Long-term debt, net | $69,419 | $120,595 | | **Total Shareholders' Equity** | **$105,769** | **$37,218** | [Consolidated Statements of Operations and Comprehensive Income](index=77&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) FY2024 net sales were **$610.9 million**, with a gross margin of **70.4%** and net income of **$39.5 million**, or **$2.61 per diluted share** Consolidated Statement of Operations (in thousands, except per share data) | | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Net sales | $610,857 | $608,043 | $618,528 | | Gross profit | $429,856 | $430,782 | $425,310 | | Operating income | $75,702 | $86,050 | $78,734 | | Net income | $39,483 | $36,201 | $42,175 | | Diluted EPS | $2.61 | $2.51 | $2.95 | [Consolidated Statements of Cash Flows](index=79&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY2024 operating cash flow was **$65.0 million**, with **$74.0 million** used in financing activities, resulting in a **$26.8 million** net decrease in cash Consolidated Statement of Cash Flows (in thousands) | | FY 2024 | FY 2023 | | :--- | :--- | | Net cash provided by operating activities | $65,036 | $63,313 | | Net cash used in investing activities | ($17,755) | ($16,934) | | Net cash used in financing activities | ($74,026) | ($71,260) | | Net change in cash and cash equivalents | ($26,750) | ($24,881) | | Cash and cash equivalents, end of period | $35,790 | $62,540 | [Notes to Consolidated Financial Statements](index=80&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, revenue disaggregation, debt facilities, fair value, leases, income taxes, and shareholders' equity transactions [Note 9. Debt](index=99&type=section&id=Note%209.%20Debt) As of February 1, 2025, the Term Loan balance was **$74.3 million** after **$94.2 million** in FY2024 repayments, with **$35.7 million** available under the ABL facility - On April 5, 2023, the company entered into a new Term Loan Credit Agreement for **$175.0 million**, maturing May 8, 2028[462](index=462&type=chunk) - In FY2024, the company made voluntary principal prepayments of **$85.4 million** on the Term Loan, resulting in a total principal repayment of **$94.2 million** for the year[251](index=251&type=chunk)[468](index=468&type=chunk) - As of Feb 1, 2025, the remaining principal balance on the Term Loan was **$74.3 million**. The company had no borrowings under its ABL Facility and **$35.7 million** of availability[468](index=468&type=chunk)[479](index=479&type=chunk) [Note 15. Shareholders' Equity](index=111&type=section&id=Note%2015.%20Shareholders%27%20Equity) In FY2024, the company raised **$29.5 million** from an equity offering, initiated a **$25.0 million** share repurchase program, and paid **$2.9 million** in dividends - On June 14, 2024, the company completed an equity offering, selling **1,000,000 shares** for net proceeds of **$29.5 million** after underwriting discounts and commissions[513](index=513&type=chunk)[514](index=514&type=chunk) - A **$25.0 million** share repurchase program was approved on December 6, 2024. During FY2024, the company repurchased **19,831 shares** for **$0.5 million**[516](index=516&type=chunk)[517](index=517&type=chunk) - During FY2024, the company paid cash dividends of **$0.21 per share**, totaling **$2.9 million**[519](index=519&type=chunk) [Note 17. Share-Based Payment](index=113&type=section&id=Note%2017.%20Share-Based%20Payment) FY2024 share-based compensation expense was **$6.9 million**, with **$6.9 million** unrecognized for RSUs and **$4.3 million** for PSUs as of February 1, 2025 - Total share-based compensation expense was **$6.9 million**, **$3.8 million**, and **$3.5 million** for Fiscal Years 2024, 2023, and 2022, respectively[526](index=526&type=chunk) - As of February 1, 2025, there was **$6.9 million** of total unrecognized compensation expense related to unvested RSUs and **$4.3 million** related to unvested PSUs[533](index=533&type=chunk)[537](index=537&type=chunk) - On December 9, 2024, the Board awarded **100,000 liability-classified performance-based stock options** to a consultant, Elm St Advisors, LLC[417](index=417&type=chunk)[527](index=527&type=chunk)

Core Viewpoint - J.Jill, Inc. reported muted fiscal Q4 results and anticipates continued weakness in Q1, yet the company maintains solid performance metrics [1]. Financial Performance - The company's fiscal Q4 results were released on March 19, indicating a relatively weak financial performance [1]. - Expectations for Q1 remain low, suggesting ongoing challenges in the retail environment [1]. Investment Perspective - The investment philosophy focuses on identifying mispriced securities through understanding financial drivers, often revealed by DCF model valuation [1].