J.Jill(JILL) - 2026 Q1 - Quarterly Results

First Quarter Fiscal 2025 Performance Summary The company reported a decline in key Q1 FY25 financial metrics and introduced commentary from its new CEO Key Financial Highlights (Q1 FY25 vs Q1 FY24) J.Jill, Inc. reported a decline in key financial metrics for Q1 FY25 compared to Q1 FY24, including net sales, gross profit, and net income | Metric | Q1 FY25 (Millions) | Q1 FY24 (Millions) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net Sales | $153.6 | $161.5 | -4.9% | | Total Company Comparable Sales | -5.7% | N/A | -5.7% | | Direct to Consumer Net Sales (% of total) | 46.7% | N/A | -5.4% | | Gross Profit | $110.4 | $117.7 | -6.3% | | Gross Margin | 71.8% | 72.9% | -1.1 pp | | SG&A | $91.1 | $89.1 | +2.2% | | Operating Income | $19.1 | $28.4 | -32.8% | | Operating Income Margin | 12.4% | 17.6% | -5.2 pp | | Net Income | $11.7 | $16.7 | -30.0% | | Net Income per Diluted Share | $0.76 | $1.16 | -34.4% | | Adjusted EBITDA | $27.3 | $35.6 | -23.3% | | Adjusted EBITDA Margin | 17.8% | 22.1% | -4.3 pp | - Net sales for Q1 FY25 included an approximately $2 million headwind related to the OMS cutover[3] CEO Commentary The new CEO highlighted the brand's solid fundamentals and strengthening omni-channel capabilities while navigating a challenging macro environment - New CEO Mary Ellen Coyne joined in early May, focusing on immersing in the business, engaging with teams, visiting stores, and interacting with associates and customers[2] - The company possesses solid fundamentals, a lean operating model, and strengthening omni-channel capabilities[2] - The company is navigating a challenging macro environment while establishing plans for the future[2] Capital Allocation and Liquidity The company detailed its capital return activities and provided an overview of its balance sheet and cash flow position Share Repurchase Authorization The company continued its share repurchase program in Q1 FY25, with $21.0 million remaining under the current authorization | Metric | Q1 FY25 | | :-------------------------------- | :------- | | Shares Repurchased | 186,800 | | Average Price per Share | $18.84 | | Total Cost | ~$3.5 million | - $21.0 million remained under the $25.0 million share repurchase program as of May 3, 2025, expiring by December 6, 2026[7] Quarterly Dividend Payment The company declared and paid a quarterly cash dividend and announced the subsequent quarter's dividend - A quarterly cash dividend of $0.08 per share was declared on March 19, 2025, payable April 16, 2025[8] - Another cash dividend of $0.08 per share was declared on June 3, 2025, payable July 9, 2025[8] Balance Sheet and Cash Flow Overview The company's balance sheet expanded, while cash and cash equivalents decreased and inventory levels rose year-over-year | Metric | May 3, 2025 (Thousands) | Feb 1, 2025 (Thousands) | | :-------------------------------- | :---------------------- | :---------------------- | | Total Assets | $432,896 | $417,699 | | Total Liabilities | $320,923 | $311,930 | | Total Shareholders' Equity | $111,973 | $105,769 | | Cash and Cash Equivalents | $31,245 | $35,427 | | Inventories, net | $60,557 | $61,295 | - Inventory at the end of Q1 FY25 was $60.6 million, up from $53.1 million at the end of Q1 FY24[10] | Metric | Q1 FY25 (Millions) | Q1 FY24 (Millions) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net Cash provided by Operating Activities | $5.3 | $21.5 | -75.3% | | Free Cash Flow | $2.6 | $19.2 | -86.5% | Business Outlook The company withdrew its fiscal 2025 guidance due to macroeconomic uncertainty and a recent leadership transition Fiscal Year 2025 Guidance Update J.Jill withdrew its prior fiscal 2025 guidance and suspended forward guidance, except for capital expenditures and store openings - Prior fiscal 2025 guidance has been withdrawn due to increased macroeconomic uncertainty and recent leadership transition[9] - The company is temporarily suspending its practice of providing forward guidance, except for total capital expenditures and net new store openings[9] | Metric | FY25 Outlook | | :-------------------------------- | :-------------------- | | Total Capital Expenditures | $20.0 million to $25.0 million | | Net New Store Growth | 1 to 5 new stores | - The company closed three stores in Q1 FY25, with the store count at 249 stores at quarter-end, compared to 244 stores at the end of Q1 FY24[10] Company Information This section provides an overview of the company's business, recent conference call details, and investor relations contacts About J.Jill, Inc. J.Jill is a national lifestyle brand offering apparel, footwear, and accessories for women through a high-touch, omni-channel experience - J.Jill is a national lifestyle brand providing apparel, footwear, and accessories with an "easy, thoughtful and inspired style"[14] - The brand operates over 200 stores nationwide and a robust e-commerce platform[14] Conference Call Information A conference call was scheduled for June 11, 2025, to discuss Q1 FY25 results, with replay details provided - Conference call for Q1 FY25 results was scheduled for June 11, 2025, at 8:00 a.m. Eastern Time[12] - A taped replay of the conference call was available until June 18, 2025[13] Investor Relations Contacts Contact information for investor relations and business media inquiries was provided - Investor Relations contact: Caitlin Churchill, ICR, Inc. (investors@jjill.com, 203-682-8200)[45] - Business and Financial Media contact: Ariel Kouvaras, Sloane & Company (akouvaras@sloanepr.com, 973-897-6241)[45] Non-GAAP Financial Measures & Reconciliations This section defines non-GAAP measures used by the company and provides reconciliations to their nearest GAAP equivalents Definition of Non-GAAP Measures The company defines non-GAAP measures like Adjusted EBITDA and Free Cash Flow, noting they should not be considered substitutes for GAAP results - Non-GAAP measures are used to supplement GAAP financial statements for assessing operating performance and liquidity[15] - Non-GAAP measures should not be considered alternatives or substitutes for GAAP measures and may not be comparable to those of other companies[16] - Adjusted EBITDA represents net income plus (less) depreciation and amortization, income tax provision, interest expense, interest income, equity-based compensation, and other non-recurring items[15] - Adjusted Income from Operations represents operating income plus (less) equity-based compensation, write-off of property and equipment, adjustment for exited retail stores, impairment of long-lived assets, and other non-recurring items[15] - Free Cash Flow represents cash flow from operations less capital expenditures[15] Reconciliation of GAAP Net Income to Adjusted EBITDA Adjusted EBITDA for Q1 FY25 was $27.3 million, a decrease from $35.6 million in the prior-year quarter | Metric | Q1 FY25 (Thousands) | Q1 FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net income | $11,692 | $16,696 | | Add (Less) Adjustments | $15,643 | $18,951 | | Adjusted EBITDA | $27,335 | $35,647 | | Net sales | $153,624 | $161,513 | | Adjusted EBITDA margin | 17.8% | 22.1% | Reconciliation of GAAP Operating Income to Adjusted Income from Operations Adjusted Income from Operations for Q1 FY25 was $21.5 million, down from $29.6 million in Q1 FY24 | Metric | Q1 FY25 (Thousands) | Q1 FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | | Operating income | $19,062 | $28,372 | | Add (Less) Adjustments | $2,467 | $1,227 | | Adjusted income from operations | $21,529 | $29,599 | Reconciliation of GAAP Net Income to Adjusted Net Income Adjusted Net Income for Q1 FY25 was $13.6 million, a decrease from $17.6 million in the prior-year period | Metric | Q1 FY25 (Thousands) | Q1 FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net income | $11,692 | $16,696 | | Adjusted net income | $13,581 | $17,582 | | Adjusted net income per diluted share | $0.88 | $1.22 | Reconciliation of GAAP Cash from Operations to Free Cash Flow Free Cash Flow for Q1 FY25 was $2.6 million, a significant decrease from $19.2 million in Q1 FY24 | Metric | Q1 FY25 (Thousands) | Q1 FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $5,336 | $21,499 | | Less: Capital expenditures | $(2,724) | $(2,312) | | Free cash flow | $2,612 | $19,187 | Forward-Looking Statements This section includes a standard disclaimer regarding the risks and uncertainties associated with forward-looking statements Forward-Looking Statements Disclaimer Forward-looking statements are subject to numerous risks and uncertainties, and actual results may differ materially from expectations - Forward-looking statements are based on current expectations and assumptions and are subject to risks, uncertainties, and changes in circumstances[17] - Actual results may differ materially due to factors such as economic conditions, consumer spending, competition, supply chain disruptions, and technological changes[17] - The company undertakes no obligation to publicly update or revise any forward-looking statement[17] Consolidated Financial Statements (Unaudited) This section presents the company's unaudited consolidated statements of operations, balance sheets, and selected cash flow data Consolidated Statements of Operations and Comprehensive Income The statements show a year-over-year decline in net sales, gross profit, operating income, and net income for the first quarter | Metric | For the Thirteen Weeks Ended May 3, 2025 (Thousands) | For the Thirteen Weeks Ended May 4, 2024 (Thousands) | | :-------------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | | 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 Net income per common share | $0.76 | $1.16 | Consolidated Balance Sheets Total assets and liabilities increased as of May 3, 2025, compared to the prior fiscal year-end, while cash and cash equivalents decreased | Metric | May 3, 2025 (Thousands) | February 1, 2025 (Thousands) | | :-------------------------------- | :---------------------- | :---------------------- | | Total assets | $432,896 | $417,699 | | Cash and cash equivalents | $31,245 | $35,427 | | Inventories, net | $60,557 | $61,295 | | Operating lease assets, net | $130,105 | $112,303 | | Total liabilities | $320,923 | $311,930 | | Operating lease liabilities, net of current portion | $117,294 | $104,751 | | Total shareholders' equity | $111,973 | $105,769 | Selected Cash Flow Information Net cash from operating activities decreased significantly in Q1 FY25, contributing to a net decrease in cash and cash equivalents | Metric | For the Thirteen Weeks Ended May 3, 2025 (Thousands) | For the Thirteen Weeks Ended May 4, 2024 (Thousands) | | :-------------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | | 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 | | Cash and cash equivalents (End of Period) | $31,245 | $77,117 |