Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2022 was $27.5 million, up from $27 million in Q3 2021, with a margin of 18.3% compared to 17.8% in the prior year [5][19] - Total company sales for Q3 2022 were $150 million, down 1% year-over-year, with comparable sales also down 1.2% [16] - Gross profit was $105 million, an increase of $500,000 compared to Q3 2021, with a gross margin of 69.9%, up 100 basis points from the previous year [17] Business Line Data and Key Metrics Changes - Store sales decreased by approximately 2.2% compared to Q3 2021, attributed to 5% fewer stores, although higher average unit retails partially offset lower traffic [16] - Direct sales accounted for 46% of total sales, with a slight increase of 0.4% compared to the same quarter last year [16] Market Data and Key Metrics Changes - The company noted a hesitancy from customers due to inflation and macroeconomic concerns, but unique and special items continued to see strong demand [6][30] - The "Wearever" sub-brand performed well, as customers sought versatile pieces for various occasions [7] Company Strategy and Development Direction - The "Welcome Everybody" and inclusive sizing initiative launched in August 2022 aimed to modernize the brand and engage both existing and new customers [8][9] - A pilot collection called "Pure Jill Elements" was tested, focusing on unique, artisanal pieces, which received positive feedback from the target demographic [10] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the remainder of the year due to macroeconomic headwinds but remained optimistic about customer engagement during the holiday season [13] - The company plans to take promotional pricing actions as necessary to manage inventory levels effectively [21] Other Important Information - Cash flow from operations was $31 million for Q3, with an end-of-quarter cash balance of just over $90 million [20] - The company plans to close a net of four stores in Q4 2022, ending the year with 243 stores [24] Q&A Session Summary Question: Can you expand on the top line performance and product category acceptance? - Management noted an up-and-down cadence throughout the quarter, with some resistance in basic categories but strong demand for unique items like dresses [30] Question: What is the outlook for moderating freight expenses? - Freight costs have moderated, contributing to improved gross margins, with expectations for continued benefits into 2023 [33] Question: Can you break down the store comps regarding price versus traffic mix? - Strategic price increases have been implemented, offsetting inflationary pressures, with a focus on maintaining a full-price promotional strategy [39] Question: Can you discuss the cash balance and potential uses for cash? - The cash balance was primarily driven by gross margin improvements, with potential uses including addressing the balance sheet and fueling growth initiatives [40] Question: What are the factors leading to EBITDA margin compression in Q4? - Increased SG&A expenses due to holiday operating hours and strategic marketing investments are expected to pressure margins, despite flat gross margins [43]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents J.Jill, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, operations, cash flows, and detailed accounting notes [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Presents J.Jill, Inc.'s financial position, detailing assets, liabilities, and shareholders' deficit at specific dates | Metric | October 29, 2022 (in thousands) | January 29, 2022 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------ | | **Assets** | | | | Cash and cash equivalents | $90,080 | $35,957 | | Total current assets | $184,678 | $123,248 | | Total assets | $489,400 | $451,849 | | **Liabilities and Shareholders' Deficit** | | | | Total current liabilities | $148,823 | $138,745 | | Total liabilities | $491,392 | $496,503 | | Total shareholders' deficit | $(1,992) | $(44,654) | | Total liabilities and shareholders' deficit | $489,400 | $451,849 | - The company's cash and cash equivalents significantly increased from **$35.96 million** at January 29, 2022, to **$90.08 million** at October 29, 2022[11](index=11&type=chunk) - Total shareholders' deficit improved substantially from **$(44.65) million** at January 29, 2022, to **$(1.99) million** at October 29, 2022[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Presents J.Jill, Inc.'s financial performance, detailing net sales, gross profit, operating income, and net income (loss) | Metric | 13 Weeks Ended Oct 29, 2022 (in thousands) | 13 Weeks Ended Oct 30, 2021 (in thousands) | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net sales | $150,204 | $151,731 | $467,616 | $440,053 | | Gross profit | $105,023 | $104,535 | $326,960 | $301,714 | | Operating income | $18,850 | $19,004 | $70,928 | $51,198 | | Income (loss) before provision for income taxes | $13,410 | $13,830 | $56,552 | $(23,288) | | Net income (loss) | $8,919 | $11,238 | $41,139 | $(31,718) | | Basic EPS | $0.64 | $0.81 | $2.95 | $(2.65) | | Diluted EPS | $0.62 | $0.79 | $2.89 | $(2.65) | - For the thirty-nine weeks ended October 29, 2022, net sales increased by **6.3% to $467.6 million**, and the company reported a net income of **$41.1 million**, a significant turnaround from a net loss of **$31.7 million** in the prior year period[13](index=13&type=chunk) - Diluted EPS for the thirty-nine weeks ended October 29, 2022, was **$2.89**, compared to a diluted loss per share of **$(2.65)** in the same period last year[13](index=13&type=chunk) [Condensed Consolidated Statements of Shareholders' Deficit (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Deficit%20(Unaudited)) Outlines changes in J.Jill, Inc.'s shareholders' deficit, including net income (loss) and equity-based compensation | Metric | January 29, 2022 (in thousands) | October 29, 2022 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------ | | Total Shareholders' Deficit | $(44,654) | $(1,992) | | Net income (loss) (39 weeks) | N/A | $41,139 | | Equity-based compensation (39 weeks) | N/A | $2,615 | | Surrender of shares to pay withholding taxes (39 weeks) | N/A | $(1,092) | - The total shareholders' deficit significantly decreased from **$(44.65) million** at January 29, 2022, to **$(1.99) million** at October 29, 2022, primarily driven by net income and equity-based compensation[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Presents J.Jill, Inc.'s cash flows from operating, investing, and financing activities, and the resulting net change in cash | Metric | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income (loss) | $41,139 | $(31,718) | | Net cash provided by operating activities | $66,720 | $53,423 | | Net cash used in investing activities | $(5,173) | $(2,488) | | Net cash used in financing activities | $(7,424) | $(37,869) | | Net change in cash | $54,123 | $13,066 | | Cash and cash equivalents, End of Period | $90,080 | $17,473 | - Net cash provided by operating activities increased by **$13.3 million** to **$66.7 million** for the thirty-nine weeks ended October 29, 2022, primarily due to a positive change in net income[16](index=16&type=chunk)[120](index=120&type=chunk) - Cash and cash equivalents at the end of the period significantly increased to **$90.08 million** from **$17.47 million** in the prior year, reflecting a net change in cash of **$54.12 million**[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Provides detailed explanations and disclosures for J.Jill, Inc.'s unaudited condensed consolidated financial statements [1. Description of Business](index=9&type=section&id=1.%20Description%20of%20Business) Outlines J.Jill, Inc.'s core business as an omnichannel women's apparel retailer - J.Jill, Inc. is a premier omnichannel retailer specializing in women's apparel, operating 247 stores nationwide and a robust e-commerce platform[18](index=18&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Summarizes J.Jill, Inc.'s key accounting policies, including revenue recognition, cost of goods sold, and recent pronouncement adoptions - The interim condensed consolidated financial statements are unaudited and prepared in accordance with GAAP, omitting certain disclosures per SEC rules for interim reporting[19](index=19&type=chunk) - Cost of goods sold includes direct merchandise costs, inventory adjustments, and inbound freight, but excludes shipping to customers, distribution, buying, store occupancy, and depreciation/amortization, which are in SG&A[20](index=20&type=chunk) - Selling, general and administrative expenses primarily consist of payroll, store occupancy, depreciation/amortization, advertising, IT, freight to customers, insurance, and professional fees[22](index=22&type=chunk) - The company adopted ASU 2019-12 (Income Taxes) in Q1 FY2022 with no material impact, and ASU 2020-04 (Reference Rate Reform) had no impact[24](index=24&type=chunk)[25](index=25&type=chunk) [3. Revenues](index=10&type=section&id=3.%20Revenues) Details J.Jill, Inc.'s revenue disaggregation by source and contract liabilities, including gift card redemptions | Revenue Source | 13 Weeks Ended Oct 29, 2022 (in thousands) | 13 Weeks Ended Oct 30, 2021 (in thousands) | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Retail | $81,800 | $83,629 | $253,093 | $223,973 | | Direct | $68,404 | $68,102 | $214,523 | $216,080 | | Net revenues | $150,204 | $151,731 | $467,616 | $440,053 | - For the thirty-nine weeks ended October 29, 2022, Retail revenue increased by **$29.12 million (13.0%)** while Direct revenue slightly decreased by **$1.56 million (0.7%)**[26](index=26&type=chunk) | Contract Liabilities | October 29, 2022 (in thousands) | January 29, 2022 (in thousands) | | :------------------- | :------------------------------ | :------------------------------ | | Signing bonus | $118 | $224 | | Unredeemed gift cards | $5,181 | $7,410 | | Total contract liabilities | $5,299 | $7,634 | - The company recognized **$7.3 million** in revenue from gift card redemptions and breakage for the thirty-nine weeks ended October 29, 2022, up from **$6.9 million** in the prior year[28](index=28&type=chunk) [4. Asset Impairments](index=11&type=section&id=4.%20Asset%20Impairments) Discusses J.Jill, Inc.'s noncash impairment charges for long-lived assets, goodwill, and intangible assets - The company recorded noncash impairment charges of **$1.3 million** for long-lived assets during the thirty-nine weeks ended October 29, 2022, primarily related to a right-of-use asset for corporate headquarters and leasehold improvements/furniture at five store locations[31](index=31&type=chunk) - Goodwill balance remained at **$59.7 million**, with accumulated impairment losses of **$137.3 million** as of October 29, 2022[33](index=33&type=chunk) | Intangible Asset | October 29, 2022 Carrying Amount (in thousands) | January 29, 2022 Carrying Amount (in thousands) | | :----------------- | :-------------------------------------------- | :-------------------------------------------- | | Trade name | $34,000 | $34,000 | | Customer relationships | $41,069 | $46,711 | | Total intangible assets | $75,069 | $80,711 | - Total amortization expense for amortizable intangible assets was **$5.6 million** for the thirty-nine weeks ended October 29, 2022, down from **$6.2 million** in the prior year[36](index=36&type=chunk) [5. Debt](index=12&type=section&id=5.%20Debt) Details J.Jill, Inc.'s debt structure, including Priming Term Loan, Subordinated Term Loan, ABL Facility, and covenant compliance | Debt Instrument | October 29, 2022 Balance Sheet (in thousands) | January 29, 2022 Balance Sheet (in thousands) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | | Priming Term Loan due 2024 | $199,185 | $199,250 | | Subordinated Term Loan due 2024 | $8,428 | $5,605 | | Existing Term Loan due 2022 | — | $4,953 | | Total Net Long-Term Debt | $204,874 | $202,116 | - The Existing Term Loan was repaid on May 8, 2022[40](index=40&type=chunk) - The Priming Term Loan matures on May 8, 2024, and the Subordinated Term Loan matures on November 8, 2024[41](index=41&type=chunk)[45](index=45&type=chunk) - The ABL Facility maturity date was extended to May 8, 2024, and the benchmark interest rate changed from LIBOR to the secured overnight financing rate[49](index=49&type=chunk) - The company was in compliance with all debt covenants as of October 29, 2022, and January 29, 2022[43](index=43&type=chunk)[45](index=45&type=chunk)[50](index=50&type=chunk) - Available borrowing capacity under the ABL Facility was **$33.0 million** as of October 29, 2022, up from **$22.6 million** at January 29, 2022[51](index=51&type=chunk) [6. Fair Value Measurements](index=14&type=section&id=6.%20Fair%20Value%20Measurements) Explains J.Jill, Inc.'s fair value measurements for debt instruments, using observable market prices as Level 2 inputs - The company's debt instruments (Priming Loan, Subordinated Facility) are recorded at cost, with fair value determined using observable market prices (Level 2 inputs)[55](index=55&type=chunk) | Financial Instrument | Carrying Value (Oct 29, 2022, in thousands) | Fair Value (Oct 29, 2022, in thousands) | | :------------------- | :---------------------------------------- | :-------------------------------------- | | Total debt | $207,613 | $216,381 | [7. Income Taxes](index=15&type=section&id=7.%20Income%20Taxes) Presents J.Jill, Inc.'s income tax provision and effective tax rates for the reported periods | Metric | 13 Weeks Ended Oct 29, 2022 (in thousands) | 13 Weeks Ended Oct 30, 2021 (in thousands) | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Income tax provision | $4,491 | $2,592 | $15,413 | $8,430 | | Effective tax rate | 33.5% | 18.8% | 27.3% | (36.1)% | - The effective tax rate for the thirty-nine weeks ended October 29, 2022, was **27.3%**, differing from the federal statutory rate due to state/local income taxes, return to provision adjustments, and partial release of valuation allowance on state deferred tax assets[61](index=61&type=chunk)[114](index=114&type=chunk) [8. Net Income (Loss) Per Share](index=16&type=section&id=8.%20Net%20Income%20(Loss)%20Per%20Share) Details J.Jill, Inc.'s basic and diluted net income (loss) per share, including weighted average common shares | Metric | 13 Weeks Ended Oct 29, 2022 | 13 Weeks Ended Oct 30, 2021 | 39 Weeks Ended Oct 29, 2022 | 39 Weeks Ended Oct 30, 2021 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income (loss) attributable to common shareholders (in thousands) | $8,919 | $11,238 | $41,139 | $(31,718) | | Basic EPS | $0.64 | $0.81 | $2.95 | $(2.65) | | Diluted EPS | $0.62 | $0.79 | $2.89 | $(2.65) | | Weighted average common shares, diluted | 14,297,925 | 14,174,218 | 14,240,486 | 11,971,405 | - Warrants became exercisable into **3,820,748** shares of common stock on May 31, 2021, and were reclassified to Additional paid-in capital, impacting diluted EPS calculations[64](index=64&type=chunk)[65](index=65&type=chunk) [9. Equity-Based Compensation](index=16&type=section&id=9.%20Equity-Based%20Compensation) Reports J.Jill, Inc.'s equity-based compensation expense for the specified periods | Period | Equity-Based Compensation Expense (in thousands) | | :--------------------------------------- | :--------------------------------------------- | | 13 Weeks Ended Oct 29, 2022 | $900 | | 13 Weeks Ended Oct 30, 2021 | $800 | | 39 Weeks Ended Oct 29, 2022 | $2,600 | | 39 Weeks Ended Oct 30, 2021 | $1,900 | - Equity-based compensation expense increased to **$2.6 million** for the thirty-nine weeks ended October 29, 2022, from **$1.9 million** in the prior year[66](index=66&type=chunk) [10. Related Party Transactions](index=16&type=section&id=10.%20Related%20Party%20Transactions) Discloses J.Jill, Inc.'s related party transactions, primarily focusing on interest expense associated with the Subordinated Facility | Related Party Expense | 13 Weeks Ended Oct 29, 2022 (in thousands) | 13 Weeks Ended Oct 30, 2021 (in thousands) | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Interest expense, net – related party | $1,100 | $600 | $2,800 | $1,600 | | Fair value adjustment of warrants – related party | — | — | — | $57,000 | - Interest expense, net – related party, associated with the Subordinated Facility, increased to **$2.8 million** for the thirty-nine weeks ended October 29, 2022, from **$1.6 million** in the prior year[68](index=68&type=chunk) [11. Commitments and Contingencies](index=17&type=section&id=11.%20Commitments%20and%20Contingencies) Addresses J.Jill, Inc.'s involvement in legal proceedings and the assessment of their potential financial impact - The company is involved in various legal proceedings in the ordinary course of business but does not believe any will have a material adverse effect on its financial statements[70](index=70&type=chunk) [12. Subsequent Event](index=17&type=section&id=12.%20Subsequent%20Event) Reports a significant post-period event regarding federal income tax payments and refunds for J.Jill, Inc. - In November 2022, the company repaid an **$8.3 million** federal income tax payment received in error from the IRS and subsequently received a **$9.2 million** federal income tax refund, resulting in a net **$0.9 million** increase in operating cash flow in Q4 FY2022[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses J.Jill, Inc.'s financial condition and results of operations, covering performance, liquidity, capital resources, and critical accounting policies [Overview](index=18&type=section&id=Overview) Provides a brief overview of J.Jill, Inc.'s business as a premier omnichannel women's apparel retailer - J.Jill is a premier omnichannel women's apparel retailer with 247 stores and a robust e-commerce platform, focused on delivering an easy, thoughtful, and inspired style[74](index=74&type=chunk) [Factors Affecting Our Operating Results](index=18&type=section&id=Factors%20Affecting%20Our%20Operating%20Results) Identifies key external and internal factors influencing J.Jill, Inc.'s operating results, such as economic trends and competition - Operating results are influenced by overall economic trends (consumer confidence, inflation), consumer preferences and fashion trends, intense retail competition, the timing and returns of strategic initiatives (e-commerce, IT upgrades), pricing strategies, merchandise mix, supply chain issues, and potential changes in tax laws/regulations[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [How We Assess the Performance of Our Business](index=19&type=section&id=How%20We%20Assess%20the%20Performance%20of%20Our%20Business) Explains the key performance metrics J.Jill, Inc. uses to evaluate its business, including net sales, gross profit, and Adjusted EBITDA - Key performance metrics include net sales (Retail and Direct), total company comparable sales, number of stores, gross profit, cost of goods sold (COGS), selling, general and administrative (SG&A) expenses, and Adjusted EBITDA[81](index=81&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - Net sales are driven by active customer base, product assortment, marketing, and customer spending habits, with omnichannel customers spending nearly **three times more** than single-channel customers[82](index=82&type=chunk) - Adjusted EBITDA is a non-GAAP measure used by management and investors to assess operating performance, planning, and forecasting, and is reconciled to net income (loss)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) | Metric | 13 Weeks Ended Oct 29, 2022 (in thousands) | 13 Weeks Ended Oct 30, 2021 (in thousands) | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income (loss) | $8,919 | $11,238 | $41,139 | $(31,718) | | Adjusted EBITDA | $27,523 | $26,960 | $94,392 | $76,591 | | Net sales | $150,204 | $151,731 | $467,616 | $440,053 | | Adjusted EBITDA margin | 18.3% | 17.8% | 20.2% | 17.4% | - Adjusted EBITDA for the thirty-nine weeks ended October 29, 2022, increased by **23.2% to $94.4 million**, with Adjusted EBITDA margin improving to **20.2%** from **17.4%** in the prior year[93](index=93&type=chunk) [Items Affecting Comparability of Financial Results](index=20&type=section&id=Items%20Affecting%20Comparability%20of%20Financial%20Results) Highlights specific items impacting the comparability of J.Jill, Inc.'s financial results between periods, such as impairment charges and warrant adjustments - The thirty-nine weeks ended October 29, 2022, included **$1.4 million** in impairment charges for long-lived assets, while the prior year had none[94](index=94&type=chunk) - Fair value adjustments for warrants and derivative liabilities, totaling **$59.8 million** in the prior year (thirty-nine weeks ended October 30, 2021), were reclassified to equity as of May 31, 2021, and thus had no impact on the current period's results[95](index=95&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Analyzes J.Jill, Inc.'s financial performance, detailing net sales, gross profit, SG&A, and net income (loss) for the reported periods [Thirteen weeks ended October 29, 2022 Compared to Thirteen weeks ended October 30, 2021](index=21&type=section&id=Thirteen%20weeks%20ended%20October%2029%2C%202022%20Compared%20to%20Thirteen%20weeks%20ended%20October%2030%2C%202021) Compares J.Jill, Inc.'s financial results for the thirteen-week periods, focusing on changes in sales, margins, and net income | Metric | Oct 29, 2022 (in thousands) | Oct 30, 2021 (in thousands) | Change ($) | Change (%) | | :------------------------------------ | :-------------------------- | :-------------------------- | :--------- | :--------- | | Net sales | $150,204 | $151,731 | $(1,527) | (1.0)% | | Gross profit | $105,023 | $104,535 | $488 | 0.5% | | Gross margin | 69.9% | 68.9% | 1.0 pp | | | Selling, general and administrative expenses | $84,873 | $85,531 | $(658) | (0.8)% | | Operating income | $18,850 | $19,004 | $(154) | (0.8)% | | Net income | $8,919 | $11,238 | $(2,319) | (20.6)% | - Net sales decreased by **1.0%** due to a **1.2%** decrease in total company comparable sales, driven by lower traffic partially offset by higher average transaction value[98](index=98&type=chunk) - Gross margin improved by **1.0 percentage point** to **69.9%**, benefiting from strategic price increases despite higher raw material costs[100](index=100&type=chunk) - SG&A expenses decreased by **0.8%** primarily due to lower occupancy, depreciation, and insurance expenses, partially offset by increased marketing and shipping costs[101](index=101&type=chunk) - Net income decreased by **20.6%** to **$8.9 million**, influenced by a higher income tax provision[97](index=97&type=chunk)[104](index=104&type=chunk) [Thirty-nine weeks ended October 29, 2022 Compared to Thirty-nine weeks ended October 30, 2021](index=22&type=section&id=Thirty-nine%20weeks%20ended%20October%2029%2C%202022%20Compared%20to%20Thirty-nine%20weeks%20ended%20October%2030%2C%202021) Compares J.Jill, Inc.'s financial results for the thirty-nine-week periods, highlighting changes in sales, margins, and net income | Metric | Oct 29, 2022 (in thousands) | Oct 30, 2021 (in thousands) | Change ($) | Change (%) | | :------------------------------------ | :-------------------------- | :-------------------------- | :--------- | :--------- | | Net sales | $467,616 | $440,053 | $27,563 | 6.3% | | Gross profit | $326,960 | $301,714 | $25,246 | 8.4% | | Gross margin | 69.9% | 68.6% | 1.3 pp | | | Selling, general and administrative expenses | $254,624 | $250,516 | $4,108 | 1.6% | | Operating income | $70,928 | $51,198 | $19,730 | 38.5% | | Income (loss) before provision for income taxes | $56,552 | $(23,288) | $79,840 | (342.8)% | | Net income (loss) | $41,139 | $(31,718) | $72,857 | (229.7)% | - Net sales increased by **6.3%** to **$467.6 million**, driven by a **6.8%** increase in total company comparable sales, benefiting from higher Retail customer traffic, strong full-price sales, and fewer promotions[106](index=106&type=chunk) - Gross margin improved by **1.3 percentage points** to **69.9%**, attributed to an improved merchandise mix and lower promotional discounts[108](index=108&type=chunk)[109](index=109&type=chunk) - SG&A expenses increased by **1.6%** due to higher compensation and marketing expenses, partially offset by decreased occupancy costs from store closures and lease renegotiations[110](index=110&type=chunk) - The company achieved a net income of **$41.1 million**, a significant improvement from a net loss of **$31.7 million** in the prior year, largely due to the absence of fair value adjustments on warrants and derivatives[105](index=105&type=chunk)[112](index=112&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Examines J.Jill, Inc.'s liquidity sources, capital structure, debt compliance, and cash flow activities - Primary liquidity sources are cash from operations and availability under the ABL Facility. As of October 29, 2022, the company had **$90.1 million** in cash and cash equivalents and **$33.0 million** available under its ABL Facility[115](index=115&type=chunk) - The ABL Facility's maturity date was extended to May 8, 2024, and its benchmark interest rate was changed from LIBOR to the secured overnight financing rate[115](index=115&type=chunk) - The company received a total federal income tax refund of **$26.7 million** related to Fiscal Year 2020, benefiting from CARES Act provisions allowing net operating loss carrybacks[116](index=116&type=chunk)[117](index=117&type=chunk) - All debt agreements (Priming Loan, Subordinated Term Loan, ABL) include customary covenants, and the company was in compliance as of October 29, 2022[118](index=118&type=chunk) | Cash Flow Activity | 39 Weeks Ended Oct 29, 2022 (in thousands) | 39 Weeks Ended Oct 30, 2021 (in thousands) | | :------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $66,720 | $53,423 | | Net cash used in investing activities | $(5,173) | $(2,488) | | Net cash used in financing activities | $(7,424) | $(37,869) | - Net cash provided by operating activities increased by **$13.3 million**, primarily due to improved net income[120](index=120&type=chunk) - Net cash used in financing activities significantly decreased to **$7.4 million** from **$37.9 million**, as the prior year included a **$25.0 million** voluntary principal payment on the Priming Loan[124](index=124&type=chunk) [Critical Accounting Policies and Significant Estimates](index=25&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Estimates) Outlines J.Jill, Inc.'s critical accounting estimates, including revenue recognition, inventory valuation, and asset impairment assessments - Critical accounting estimates involve revenue recognition (gift card breakage, merchandise returns), inventory valuation, and impairment assessments for goodwill, indefinite-lived intangible assets, and long-lived assets[130](index=130&type=chunk) - No significant changes to critical accounting policies and estimates were reported since the 2021 Annual Report[131](index=131&type=chunk) [Recent Accounting Pronouncements](index=25&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note 2 for details on J.Jill, Inc.'s recently adopted accounting standards and their estimated effects - Refer to Note 2 for details on recently adopted accounting standards and their estimated effects[132](index=132&type=chunk) [Special Note Regarding Forward-Looking Statements](index=25&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) Warns readers about forward-looking statements in the report, emphasizing inherent risks and uncertainties that may cause actual results to differ - The report contains forward-looking statements identified by terms like 'anticipate,' 'expect,' and 'will,' which involve known and unknown risks and uncertainties[133](index=133&type=chunk)[134](index=134&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as actual results may differ materially due to factors discussed in 'Risk Factors' and other cautionary statements[134](index=134&type=chunk)[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the company's exposure to market risk during the third quarter of Fiscal Year 2022 - No material changes in market risk exposure occurred during the third quarter of Fiscal Year 2022[136](index=136&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of October 29, 2022, ensuring timely and accurate reporting of material information. No material changes to internal control over financial reporting occurred during the third quarter of Fiscal Year 2022 - Disclosure controls and procedures were deemed effective as of October 29, 2022, by management, including the CEO and CFO[137](index=137&type=chunk) - No material changes to internal control over financial reporting occurred during the third quarter of Fiscal Year 2022[138](index=138&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business but does not believe any will have a material adverse effect on its financial statements. Reserves are established for probable and estimable losses - The company is involved in routine legal proceedings, but management does not anticipate any material adverse effects on financial statements[140](index=140&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the company's 2021 Annual Report, stating that no material changes to these risks have occurred as of the date of this Quarterly Report. However, additional or currently immaterial risks may emerge - No material changes to previously disclosed risk factors in the 2021 Annual Report have occurred as of this filing date[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item reports that there were no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities or use of proceeds occurred during the period[142](index=142&type=chunk) [Item 3. Defaults Upon Senior Securities](index=27&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item indicates that there were no defaults upon senior securities during the period - No defaults upon senior securities occurred during the period[143](index=143&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[144](index=144&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20Other%20Information) This item states that there is no other information to report - No other information is reported under this item[145](index=145&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of this Quarterly Report, including certificates of incorporation, bylaws, certifications of principal executive and financial officers, and Inline XBRL documents - The exhibit index includes corporate governance documents (Certificate of Incorporation, Bylaws), officer certifications (31.1, 31.2, 32.1, 32.2), and Inline XBRL documents for financial data[146](index=146&type=chunk)[148](index=148&type=chunk) SIGNATURES - The report is duly signed on December 6, 2022, by Claire Spofford, Chief Executive Officer, and Mark Webb, Executive Vice President, Chief Financial Officer/Chief Operating Officer[150](index=150&type=chunk)[152](index=152&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________ to _____________________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 ...

Financial Data and Key Metrics Changes - The company reported total sales of $160 million for Q2 2022, an increase of 0.7% compared to Q2 2021 [21] - Adjusted EBITDA reached $36 million, or 22.2% of sales, compared to $33 million, or 20.5% of sales in Q2 2021 [25] - Gross profit was $112 million, up $3 million from Q2 2021, with a gross margin of 70.1%, an increase of 150 basis points year-over-year [23] - Cash generated from operations was $28 million for the quarter, with total cash at the end of Q2 amounting to $62 million and no borrowings against the ABL [26] Business Line Data and Key Metrics Changes - Store sales increased by 2% compared to Q2 2021, driven by higher average unit retails through strategic price increases and reduced promotions [21] - Direct sales as a percentage of total sales were 46%, down 0.7% compared to the previous year [22] Market Data and Key Metrics Changes - The company experienced a strong start to the quarter, particularly around Mother's Day, but noted a slowdown in purchasing in the latter part of the quarter as customers had shopped early [8][40] - The company remains optimistic about customer return for fall wardrobe purchases based on feedback from store associates [9][40] Company Strategy and Development Direction - The company is investing in brand awareness and customer base growth, particularly through the "Welcome Everybody" campaign focused on size inclusivity [10][11] - The strategy includes merging missy and women's collections to create a size-integrated shopping experience and enhancing marketing efforts to reach new customers [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook regarding the consumer landscape but remains confident in leveraging operational disciplines for continued execution of objectives [18] - For Q3 2022, the company projects sales to be flat to down 3% compared to Q3 2021, with adjusted EBITDA expected between $21 million and $23 million [31] Other Important Information - Inventory levels increased by 12% compared to Q2 2021, driven by elevated levels of goods in transit [28] - The company plans to close a net of 10 to 14 stores in fiscal 2022, including the opening of up to two new stores late in the fourth quarter [35] Q&A Session Summary Question: What did you see regarding customer traffic and the Welcome Everybody campaign? - Management noted a slowdown in traffic in the latter half of the quarter, attributing it to early shopping and summer vacations, but expressed optimism for fall purchases [39][40] - Positive feedback was received regarding the Welcome Everybody campaign, with consumers appreciating the extended sizes and price parity [41] Question: What is the expectation for refinancing and its implications? - Management indicated that refinancing is not urgent but is being prepared for when market conditions are favorable [44][45] Question: Any updates on store openings and the environment? - Management confirmed ongoing opportunities for store growth but noted a slight revision down in expected store openings due to lead times and negotiations [46] Question: Can you elaborate on cash flow drivers and working capital? - Cash flow was primarily driven by full-price sales, with inventory investments aimed at ensuring on-time delivery [48]

PART I. FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2022 consolidated financial statements show significant performance improvement, with net income of $14.4 million and positive operating cash flow [Condensed Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) As of April 30, 2022, total assets increased to $463.6 million, liabilities slightly decreased, and shareholders' deficit improved to $30.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2022 | January 29, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $40,839 | $35,957 | | Inventories, net | $63,216 | $56,024 | | Total current assets | $138,786 | $123,248 | | Total assets | $463,582 | $451,849 | | **Liabilities & Shareholders' Deficit** | | | | Total current liabilities | $138,156 | $138,745 | | Long-term debt, net | $202,664 | $202,116 | | Total liabilities | $493,900 | $496,503 | | Total shareholders' deficit | $(30,318) | $(44,654) | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29%20%28Unaudited%29) Q1 2022 reported a significant turnaround with $14.4 million net income, driven by 21.7% net sales growth and improved gross margin Statement of Operations Summary (in thousands, except per share data) | Metric | For the Thirteen Weeks Ended April 30, 2022 | For the Thirteen Weeks Ended May 1, 2021 | | :--- | :--- | :--- | | Net sales | $157,069 | $129,086 | | Gross profit | $109,463 | $87,826 | | Operating income | $23,885 | $8,687 | | Net income (loss) | $14,415 | $(18,308) | | Diluted EPS | $1.02 | $(1.89) | [Condensed Consolidated Statements of Shareholders' Deficit (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Deficit%20%28Unaudited%29) Shareholders' deficit improved from $(44.7) million to $(30.3) million as of April 30, 2022, driven by $14.4 million net income - The shareholders' deficit decreased from **$(44,654) thousand** at the start of the quarter to **$(30,318) thousand** at the end, mainly due to the **$14,415 thousand** in net income[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Q1 2022 net cash from operations was $7.2 million, a significant improvement from prior year's $4.1 million use, driven by higher net income Cash Flow Summary (in thousands) | Cash Flow Activity | For the Thirteen Weeks Ended April 30, 2022 | For the Thirteen Weeks Ended May 1, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $7,168 | $(4,133) | | Net cash used in investing activities | $(750) | $(476) | | Net cash (used in) provided by financing activities | $(1,536) | $10,927 | | **Net change in cash** | **$4,882** | **$6,318** | | **Cash, End of Period** | **$40,839** | **$10,725** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Notes detail accounting policies, revenue disaggregation, stable goodwill, debt facilities, covenant compliance, and related party transactions - J.Jill is an omnichannel retailer of women's apparel, operating about **250 stores** and a robust e-commerce platform[18](index=18&type=chunk) Disaggregated Revenue by Source (in thousands) | Channel | For the Thirteen Weeks Ended April 30, 2022 | For the Thirteen Weeks Ended May 1, 2021 | | :--- | :--- | :--- | | Retail | $84,212 | $54,916 | | Direct | $72,857 | $74,170 | | **Net revenues** | **$157,069** | **$129,086** | - Goodwill balance was stable at **$59.7 million** as of April 30, 2022, with no impairment losses recorded during the period. Accumulated goodwill impairment losses from prior periods total **$137.3 million**[31](index=31&type=chunk) - Total outstanding debt was **$226.1 million** as of April 30, 2022. The company was in compliance with all financial covenants[36](index=36&type=chunk)[40](index=40&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2022 performance to 24.0% comparable sales growth, 21.7% net sales increase, expanded gross margin, and significantly higher Adjusted EBITDA - Key factors affecting operating results include overall economic trends, consumer preferences, competition, strategic initiatives like e-commerce enhancement, pricing, and potential changes in tax laws[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | For the Thirteen Weeks Ended April 30, 2022 | For the Thirteen Weeks Ended May 1, 2021 | | :--- | :--- | :--- | | Net income (loss) | $14,415 | $(18,308) | | **Adjusted EBITDA** | **$31,297** | **$16,925** | | Net sales | $157,069 | $129,086 | | **Adjusted EBITDA margin** | **19.9%** | **13.1%** | [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q1 2022 net sales increased 21.7% to $157.1 million, driven by 24.0% comparable sales growth and improved gross margin to 69.7%, leading to a 175.0% surge in operating income - Net sales increased by **$28.0 million** (**21.7%**) to **$157.1 million**, driven by a **24.0%** increase in total company comparable sales, increased retail traffic, and strong full-price sales[91](index=91&type=chunk) - Gross margin improved to **69.7%** from **68.0%** in the prior year, benefiting from better full-price selling and lower promotional activity[93](index=93&type=chunk) - SG&A expenses increased by **$6.4 million** (**8.1%**), mainly due to a **$3.8 million** increase in management incentive bonus expense and a **$1.4 million** increase in marketing expenses[94](index=94&type=chunk) - The effective tax rate was **25.8%** for Q1 2022, compared to **(8.2%)** for Q1 2021. The prior year's negative rate was due to nondeductible fair value adjustments of warrants and other items[99](index=99&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources include $40.8 million cash and $35.5 million ABL Facility availability, with cash flow from operations significantly improving to $7.2 million - As of April 30, 2022, the company had **$40.8 million** in cash and **$35.5 million** of total availability under its ABL Facility[100](index=100&type=chunk) - The maturity date of the ABL Facility was extended from **May 8, 2023**, to **May 8, 2024**, and the benchmark interest rate was changed from LIBOR to SOFR[100](index=100&type=chunk)[47](index=47&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | For the Thirteen Weeks Ended April 30, 2022 | For the Thirteen Weeks Ended May 1, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $7,168 | $(4,133) | | Net cash used in investing activities | $(750) | $(476) | | Net cash (used in) provided by financing activities | $(1,536) | $10,927 | [Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure occurred during Q1 Fiscal Year 2022, consistent with prior Annual Report disclosures - There have been no material changes in the Company's exposure to market risk during the first quarter of Fiscal Year 2022[122](index=122&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of April 30, 2022, with no material changes to internal controls during Q1 - The Chief Executive Officer and Chief Financial Officer concluded that as of April 30, 2022, the company's disclosure controls and procedures are effective[123](index=123&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of Fiscal Year 2022 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[124](index=124&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings, none of which are expected to have a material adverse effect on its financial condition or operations - Management does not believe the company is party to any legal proceedings that would have a material adverse effect on its business, financial condition, operating results, or cash flows[127](index=127&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors occurred as of the date of this Quarterly Report - As of the date of this Quarterly Report, there have been no material changes to the risk factors previously disclosed in the 2021 Annual Report[128](index=128&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None[129](index=129&type=chunk) [Defaults Upon Senior Securities](index=23&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - None[130](index=130&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[131](index=131&type=chunk) [Other Information](index=23&type=section&id=Item%205.%20Other%20Information) No other information was reported for the period - None[132](index=132&type=chunk) [Exhibits](index=23&type=section&id=Item%206.%20Exhibits) Exhibits listed in the Exhibit Index are filed or furnished as part of this Quarterly Report - The exhibits listed on the Exhibit Index are filed or furnished as part of this Quarterly Report[133](index=133&type=chunk)

J.Jill, Inc. (NYSE:JILL) Q1 2022 Earnings Conference Call June 8, 2022 8:00 AM ET Company Participants Claire Spofford - President, Chief Executive Officer & Director Mark Webb - Executive Vice President, Chief Financial Officer & Operating Officer Conference Call Participants Janet Joseph Kloppenburg - JJK Research Associates Dana Telsey - Telsey Group Daniel Lupo - Jefferies Operator Good morning. My name is Chris and I'll be your conference operator today. At this time, I'd like to welcome everyone to th ...

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 January 29, 2022 (Exact name of Registrant as specified in its Charter) | Delaware | 45-1459825 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 4 Batterymarch Park Quincy, MA | 02169 | | (Address of principal executive offic ...

Financial Data and Key Metrics Changes - Fiscal 2021 saw total sales grow to $585 million, a 37% increase compared to 2020, with gross margin improving by 980 basis points versus 2020 and 540 basis points compared to 2019 [5][17] - Adjusted EBITDA for fiscal 2021 reached $92 million, reflecting a significant year-over-year increase and a 620 basis point expansion compared to pre-COVID 2019 levels [6][17] - Q4 total company sales were $145 million, up 15% from Q4 2020, but down 14% compared to Q4 2019 [21][22] Business Line Data and Key Metrics Changes - Store sales in Q4 increased over 62% compared to Q4 2020, but were down 21% compared to 2019 levels [22] - Direct sales accounted for 52% of total sales in Q4, down 9% from the previous year due to lower markdown sales, partially offset by higher full-price sales [23] Market Data and Key Metrics Changes - Store traffic was negatively impacted by the Omicron variant during the holiday season but showed recovery later in January as cases declined [9] - The company ended the year with inventory levels down 3.5% compared to the end of 2020, indicating a healthier balance of full-price versus markdown units [26] Company Strategy and Development Direction - The company aims to modernize the J.Jill brand and value proposition, attract new customers through strategic marketing, and drive growth in high-potential sub-brands like Pure Jill and J.Jill Fit [13] - Future growth will focus on disciplined inventory and expense management, with plans for new store openings in high-potential locations [12][32] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver continued traction and results despite macro-related headwinds, emphasizing a disciplined approach to managing the business [15] - The company expects sales growth of 11% to 14% in Q1 2022 compared to Q1 2021, with adjusted EBITDA projected between $20 million and $22 million [28] Other Important Information - Capital expenditures for the year are expected to increase to between $15 million and $18 million, focusing on technology investments and new store openings [33][61] - The company plans to close approximately 10 stores in fiscal 2022 while selectively reviewing opportunities for new store openings [32] Q&A Session Summary Question: Inventory levels and their impact on sales - Management acknowledged that lower inventory levels constrained sales in Q4 but emphasized the importance of reducing markdowns as part of their operating model strategy [40][41] Question: Freight expenses and product strength - Management indicated that freight expenses are expected to remain elevated in the first half of the year, while product categories like dresses and travel outfits are seeing strong demand [51][56] Question: Employee turnover and labor market challenges - Management reported a relatively low turnover rate and successful talent acquisition despite a tight labor market [72][73] Question: Consumer health amid inflation - Management noted that their consumer base remains strong and less susceptible to inflationary pressures, with no significant impact on business observed so far [76][77] Question: Plans for excess cash and debt management - Management expressed interest in improving the capital structure and reducing debt, while also considering options for utilizing excess cash [78][79]

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 30, 2021 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) Delawar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 J.Jill, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 45-1459825 (State or other jurisdiction of incorporation or organization) 4 Batterymarch Park, Quincy, MA 02169 02169 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (617) 376-4300 Securities regi ...