UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-38026 J.Jill, Inc. (Exact name of Registrant as specified in its Charter) Delaware 45-1459825 (State or other jurisdiction of incorp ...

J.Jill, Inc. (NYSE: JILL ), the women’s apparel retailer, reported the company’s fiscal Q4 results on the 19 th of March. While the Q4 financials were relatively muted, and are expected to remain weak in Q1, J.Jill continues to post solidI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the ...

J.Jill, Inc. (NYSE:JILL) Q4 2024 Earnings Conference Call March 19, 2025 8:00 AM ET Company Participants Claire Spofford - President and Chief Executive Officer Mark Webb - Executive Vice President, Chief Financial and Operating Officer Conference Call Participants Janine Stichter - BTIG Ryan Meyers - Lake Street Capital Markets Jonna Kim - TD Cowen Marni Shapiro - The Retail Tracker Dana Telsey - Telsey Group Corey Tarlowe - Jefferies Operator Thank you for standing by. My name is Pam and I will be your co ...

Core Viewpoint - J.Jill reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.23 per share a year ago, indicating a 45.45% earnings surprise [1] Financial Performance - The company achieved revenues of $142.84 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.88%, although this represents a decline from $149.45 million in the same quarter last year [2] - Over the last four quarters, J.Jill has exceeded consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - J.Jill shares have declined approximately 32.6% since the beginning of the year, contrasting with the S&P 500's decline of 4.5% [3] - The current Zacks Rank for J.Jill is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $166.05 million, and for the current fiscal year, it is $3.62 on revenues of $630.7 million [7] - The trend of estimate revisions for J.Jill is mixed, which could change following the recent earnings report [6] Industry Context - The Retail - Apparel and Shoes industry, to which J.Jill belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - The article emphasizes the importance of value investing and highlights J.Jill (JILL) as a strong value stock based on its financial metrics and rankings [2][4][7] Company Analysis - J.Jill currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4][7] - The stock has a Forward P/E ratio of 6.99, significantly lower than the industry average of 19.64, suggesting it may be undervalued [4] - J.Jill's Forward P/E has fluctuated between a high of 11.07 and a low of 6.69 over the past 52 weeks, with a median of 7.69 [4] - The company has a P/B ratio of 3.77, which is attractive compared to the industry's average P/B of 6.23, indicating a favorable valuation [5] - J.Jill's P/B has ranged from a high of 9.27 to a low of 3.49 in the past year, with a median of 5.67 [5] - The P/CF ratio for J.Jill is 6.13, well below the industry average of 16.31, further supporting the notion of undervaluation [6] - Over the past 12 months, J.Jill's P/CF has varied between a high of 9.08 and a low of 5.02, with a median of 6.45 [6] - These financial metrics collectively suggest that J.Jill is likely undervalued and presents a strong investment opportunity for value-focused investors [7]

Executive Appointment - Jill Kelly appointed as North America CEO of Assembly, effective February 3, 2025, succeeding Valerie Davis [1] - Kelly will report to Assembly's Global CEO, Rick Acampora, and focus on amplifying capabilities, delivering breakthrough solutions, and fostering innovation and collaboration [2] - Kelly brings extensive experience from roles including CEO of EssenceMediacom, global CMO at GroupM, and leadership positions within Publicis Groupe [3] Strategic Vision and Leadership - Kelly emphasizes Assembly's commitment to "Find the Change that Fuels Growth," leveraging new technologies and client relationships to create durable campaigns [4] - Assembly's recent launch of STAGE AI, an advanced proprietary technology, highlights the agency's focus on AI-driven media strategies [4] - Rick Acampora, Global CEO, highlights Kelly's track record in driving growth, fostering talent, and leading transformative initiatives as key to elevating North American operations [5] Company Overview - Assembly is a global omnichannel media agency with over 2,300 professionals across 35 offices worldwide, powered by its proprietary STAGE operating system [6] - The agency integrates data, talent, and technology to drive growth for esteemed brands, with a focus on social and environmental impact [6] - Assembly is part of Stagwell, a challenger network aimed at revolutionizing marketing [6]

Company Overview - J.Jill, Inc. (NYSE: JILL) reported Q3 2024 results, indicating a challenging quarter similar to other apparel retailers, primarily due to promotions and mild fall weather [1] - Comparable sales decreased slightly by 0.8%, attributed partly to external market conditions [1] Industry Context - The apparel retail sector is experiencing difficulties, with companies facing challenges related to promotional strategies and seasonal weather impacts [1]

Core Insights - J.Jill, Inc. reported third-quarter fiscal 2024 results with net sales in line with estimates and earnings per share exceeding expectations, both showing year-over-year growth [1][3][4] Financial Performance - Quarterly earnings were 89 cents per share, surpassing the Zacks Consensus Estimate of 80 cents, and increased by 7.2% from 83 cents in the prior year [3] - Net sales reached $151.3 million, a 0.3% increase from $150.9 million in the same quarter last year, aligning with the Zacks Consensus Estimate [4] - Total comparable sales declined by 0.8%, impacted by approximately 50 basis points due to hurricane disruptions [5] - Gross profit decreased by 0.6% to $108 million, with gross margin contracting by 60 basis points to 71.4% due to increased promotional activities and higher freight costs [6] - SG&A expenses rose by 2.5% year over year to $88.6 million, with SG&A as a percentage of net sales increasing by 70 basis points to 58.4% [7] - Adjusted EBITDA totaled $26.8 million, down from $28.6 million in the prior year, indicating a decline of 6.1% [8] Operational Updates - The company ended the quarter with 247 stores, opening three new stores and temporarily closing one due to hurricane damage [9] - Cash and cash equivalents stood at $38.8 million, with long-term debt at $69.1 million and total shareholders' equity at $103.3 million [10] - Net cash flow from operations was $19.1 million, compared to $21.1 million in the prior year, with free cash flow totaling $13.6 million [11] Future Outlook - For the fiscal fourth quarter, management anticipates net sales to decline by 4% to 6% compared to the same quarter last year, with total comparable sales expected to increase by 1% to 3% [13] - For fiscal 2024, J.Jill forecasts net sales growth to be flat to up 1%, with adjusted EBITDA projected between $105 million and $107 million, reflecting a year-over-year decrease of 5-7% [14] - Excluding the impact of the 53rd week and OMS project expenses, net sales growth is estimated at 1-2% with adjusted EBITDA decline of 2-4% [15] Shareholder Returns - The company announced a quarterly dividend of 7 cents per share, payable on January 9, 2025 [12] - A new share repurchase program was authorized, allowing the company to buy back up to $25 million of shares over the next two years, indicating management's confidence in the business [2][11]

Financial Data and Key Metrics Changes - The company reported total sales for Q3 2024 of approximately $151 million, which is up 0.3% compared to Q3 2023 [26] - Total company comparable sales decreased by 0.8% compared to a positive 1.9% last year, with a negative impact of approximately $800,000 from storm activity [26][29] - Gross margin for Q3 was 71.4%, down 60 basis points from Q3 2023, influenced by elevated markdowns and ocean freight costs [29][30] - Adjusted EBITDA for the quarter was $26.8 million, representing 17.7% of sales, compared to $28.6 million in Q3 2023 [32] Business Line Data and Key Metrics Changes - Retail sales were up 0.2% compared to Q3 2023, primarily driven by a calendar shift, while direct sales as a percentage of total sales were about 46% [26][28] - The company saw growth in orders per customer, supporting spend per customer results, despite a slight decline in the overall customer file [13][70] - The strength in the bottoms assortment helped offset ongoing softness in dresses, with a noted increase in engagement from marketing campaigns [17][102] Market Data and Key Metrics Changes - The company experienced a mixed consumer behavior, with direct consumers being more price-sensitive compared to retail consumers [51][80] - The impact of weather was noted, with cooler temperatures aiding sales in sweaters and outerwear as the season progressed [60] Company Strategy and Development Direction - The company is focused on modernizing the brand and enhancing omnichannel capabilities, with plans for new store growth and a new order management system coming online in 2025 [8][18] - A new share repurchase program has been authorized, reflecting confidence in the business model and growth opportunities [10][44] - The company aims to open up to 50 net new stores over the next five years, with a robust pipeline of potential locations [36][74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the consumer environment, particularly the lack of robust full-price selling seen earlier in the year [24][37] - For Q4, the company expects sales to decline by 4% to 6% compared to the previous year, with total comparable sales growth projected to increase by 1% to 3% [38][40] - The company remains committed to maintaining operational discipline and managing controllables amidst market uncertainties [43][44] Other Important Information - The company has reduced debt levels to approximately $76 million and initiated its first ordinary dividend program [44] - Capital expenditures for the quarter were $5.5 million, focused on store openings and the OMS project [34] Q&A Session Summary Question: Can you elaborate on the cadence of trends in the quarter? - Management noted that August was a soft month, but there was sequential improvement as the quarter progressed, aided by colder weather and marketing efforts [50] Question: Have you seen any changes in the broader promotional environment? - Management confirmed that Q4 tends to be promotional, with adjustments made to the timing of promotions [54] Question: What impact did weather have on sales? - Management acknowledged that weather was a headwind early in the season but improved as temperatures dropped [60] Question: Can you provide insights on customer file trends? - The overall customer file contracted slightly, but the best customer cohort continued to perform well [70] Question: What are the plans for store openings in 2025? - Management indicated a robust pipeline for store openings, with expectations to ramp up from the current year [74] Question: How is the company addressing direct consumer price sensitivity? - Management noted that the direct consumer has historically been more price-sensitive, but efforts are being made to maintain a healthy margin profile [80] Question: What is the potential impact of tariffs on the supply chain? - Management stated that tariffs are being monitored, but the impact is minimal as China accounts for less than 5% of finished goods production [87]

Financial Performance - Net income for the thirteen weeks ended October 28, 2023, was $12.348 million, compared to $11.616 million for the same period in 2022, representing a year-over-year increase of 6.3%[86] - Adjusted EBITDA for the thirteen weeks ended October 28, 2023, was $26.808 million, down from $28.552 million in the prior year, reflecting a decrease of 6.1%[86] - Net sales for the thirteen weeks ended October 28, 2023, were $151.260 million, slightly up from $150.881 million in the same period last year, indicating a growth of 0.3%[86] - Adjusted EBITDA margin for the thirteen weeks ended October 28, 2023, was 17.7%, compared to 18.9% for the same period in 2022, showing a decline of 1.2 percentage points[86] - Operating income for the thirteen weeks ended November 2, 2024, was $19.2 million, a decrease of $2.9 million, or 13.1%, from $22.1 million in the prior year[88] - Net income for the thirteen weeks ended November 2, 2024, was $12.3 million, an increase of $0.7 million, or 6.3%, from $11.6 million for the same period in 2023[88] - For the thirty-nine weeks ended November 2, 2024, net sales increased by $10.3 million, or 2.2%, to $468.0 million compared to $457.8 million in the prior year[97] - Gross profit for the thirty-nine weeks ended November 2, 2024, increased by $5.8 million, or 1.8%, to $335.1 million, with a gross margin of 71.6% compared to 71.9% in the prior year[99] Expenses and Costs - SG&A expenses for the thirteen weeks ended November 2, 2024, increased by $2.2 million, or 2.5%, to $88.6 million, representing 58.6% of net sales[91] - SG&A expenses for the thirty-nine weeks ended November 2, 2024, increased by $10.4 million, or 4.1%, to $264.1 million, representing 56.4% of net sales[100] - The company incurs pre-opening costs for new stores, which include payroll, travel, training, and initial inventory costs, impacting short-term financial performance[83] Cash Flow and Debt - Interest expense for the thirty-nine weeks ended November 2, 2024, was $13.0 million, a decrease of $5.7 million, or 30.6%, from $18.8 million in the prior year[103] - The company recorded a loss on extinguishment of debt of $8.6 million for the thirty-nine weeks ended November 2, 2024, related to the voluntary prepayment of a portion of the Term Loan Credit Agreement[101] - The income tax provision was $13.8 million for the thirty-nine weeks ended November 2, 2024, compared to $13.3 million for the same period in 2023, with effective tax rates of 27.1% and 29.8% respectively[107] - As of November 2, 2024, the company had $38.8 million in cash and $35.7 million of total availability under its ABL Facility[108] - Net cash provided by operating activities increased to $56.9 million for the thirty-nine weeks ended November 2, 2024, compared to $56.7 million for the same period in 2023[113] - Net cash used in investing activities was $10.0 million for the thirty-nine weeks ended November 2, 2024, down from $10.8 million in the same period in 2023[115] - Net cash used in financing activities was $70.3 million for the thirty-nine weeks ended November 2, 2024, compared to $68.9 million for the same period in 2023[116] - The company made voluntary principal prepayments of $58.2 million and $27.2 million on its Term Loan Credit Agreement during Fiscal Year 2024[111] - As of November 2, 2024, the remaining Term Loan Facility principal balance was $76.5 million, with a scheduled repayment of $2.2 million prior to January 31, 2025[111] Dividends and Stock Repurchase - The company declared a quarterly cash dividend of $0.07 per share, resulting in total dividend payments of $1.0 million for the thirteen weeks and $1.8 million for the thirty-nine weeks ended November 2, 2024[117] - The company is authorized to repurchase up to $25.0 million of its common stock over the next two years under a newly approved Share Repurchase Program[108] Market and Strategic Initiatives - The ongoing implementation of strategic initiatives, including enhancements to the ecommerce platform and information systems, is expected to impact future operating results positively[81] - The company faces challenges from overall economic trends, including inflationary pressures and reduced consumer confidence, which may affect demand for merchandise[81] - The retail industry remains highly competitive, with the company needing to anticipate fashion trends to maintain customer appeal and attract new customers[81] - The total company comparable sales calculation is based on a 52-week period, which may not be comparable to sales data from other companies due to different calculation methods[83] - The company operates over 200 stores nationwide and has a robust ecommerce platform, contributing to its customer experience strategy[80]