Executive Summary J.Jill, Inc. announced Q2 FY25 results, including net sales of $154.0 million and a gross margin of 68.4%, and provided Q3 FY25 outlook Announcement and Key Q2 FY25 Results J.Jill, Inc. announced its second quarter fiscal year 2025 results, reporting net sales of $154.0 million and a gross margin of 68.4% | Metric | Q2 FY25 | | :----- | :------ | | Net Sales | $154.0 Million | | Gross Margin | 68.4% | CEO Commentary CEO Mary Ellen Coyne highlighted sequential sales improvement in Q2 FY25 and outlined a strategic framework for sustainable growth - Sequential improvement in sales trends each month during Q2 FY25, driven by improved traffic and positive customer response to the summer sale period3 - Focus on realizing brand's untapped potential to expand customer file by executing a strategic framework: evolving product assortment, enhancing customer journey, and improving operational efficiency for sustainable, profitable growth3 Financial Performance Highlights This section details J.Jill's financial performance for Q2 FY25 and year-to-date, including sales, profit, and cash flow metrics Second Quarter Fiscal Year 2025 (Q2 FY25) Performance Q2 FY25 saw a slight decrease in net sales and comparable sales, a decline in gross and operating margins, but an increase in net income | Metric | Q2 FY25 (Millions) | Q2 FY24 (Millions) | Change (%) | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Net Sales | $154.0 | $155.2 | -0.8% | | Total Company Comparable Sales | -1.0% | N/A | N/A | | Direct to Consumer Net Sales (% of total) | 46.4% | N/A | -2.2% | | Gross Profit | $105.4 | $109.4 | -3.7% | | Gross Margin | 68.4% | 70.5% | -2.1 ppts | | SG&A | $88.6 | $86.3 | +2.7% | | Operating Income | $16.8 | $23.0 | -27.0% | | Operating Income Margin | 10.9% | 14.8% | -3.9 ppts | | Net Income | $10.5 | $8.2 | +28.0% | | Net Income per Diluted Share | $0.69 | $0.54 | +27.8% | - Net Income in Q2 FY25 increased to $10.5 million from $8.2 million in Q2 FY24, primarily due to the absence of an $8.6 million loss on extinguishment of debt in the prior year425 Twenty-Six Weeks Ended August 2, 2025 (YTD FY25) Performance YTD FY25 performance shows decreases in net sales, comparable sales, gross profit, operating income, and net income | Metric | YTD FY25 (Millions) | YTD FY24 (Millions) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | | Net Sales | $307.6 | $316.8 | -2.9% | | Total Company Comparable Sales | -3.5% | N/A | N/A | | Direct to Consumer Net Sales (% of total) | 46.6% | N/A | -3.8% | | Gross Profit | $215.7 | $227.1 | -5.0% | | Gross Margin | 70.1% | 71.7% | -1.6 ppts | | SG&A | $179.7 | $175.4 | +2.5% | | Operating Income | $35.8 | $51.4 | -30.3% | | Operating Income Margin | 11.7% | 16.2% | -4.5 ppts | | Net Income | $22.2 | $24.9 | -10.8% | | Net Income per Diluted Share | $1.45 | $1.69 | -14.2% | Balance Sheet and Cash Flow Highlights Inventory increased, cash balance improved, and operating cash flow showed mixed trends for Q2 and YTD FY25 | Metric | Q2 FY25 (Millions) | Q2 FY24 (Millions) | Change | | :-------------------------------- | :----------------- | :----------------- | :----- | | Inventory | $55.3 | $52.7 | +4.9% | | Cash Balance (End of Q2) | $45.5 | N/A | N/A | | Net Cash from Operating Activities (Q2) | $19.4 | $16.4 | +18.3% | | Net Cash from Operating Activities (YTD) | $24.7 | $37.9 | -34.8% | | Free Cash Flow (Q2) | $16.6 | $14.1 | +17.7% | | Free Cash Flow (YTD) | $19.2 | $33.3 | -42.4% | Capital Allocation and Shareholder Returns This section outlines J.Jill's share repurchase activities and quarterly dividend payments to shareholders Share Repurchase Program J.Jill repurchased shares in Q2 and YTD FY25, with $20.0 million remaining under the current program | Period | Shares Repurchased | Aggregate Purchase Price | | :----- | :----------------- | :----------------------- | | Q2 FY25 | 68,440 | $1.0 million | | YTD FY25 | 255,240 | $4.5 million | - As of August 2, 2025, $20.0 million remains under the $25.0 million share repurchase program, expiring by December 6, 2026, to be funded by existing cash and future free cash flow10 Quarterly Dividend Payments J.Jill declared and paid quarterly cash dividends of $0.08 per share in Q2 FY25 and subsequent to the quarter end | Declaration Date | Amount per Share | Payable Date | Record Date | | :--------------- | :--------------- | :----------- | :---------- | | June 3, 2025 | $0.08 | July 9, 2025 | June 25, 2025 | | August 27, 2025 | $0.08 | October 1, 2025 | September 17, 2025 | Outlook This section provides J.Jill's financial guidance for the third quarter and full fiscal year 2025 Third Quarter Fiscal Year 2025 (Q3 FY25) Outlook Q3 FY25 guidance incorporates an approximate $5.0 million incremental cost impact from tariffs - Q3 FY25 guidance includes approximately $5.0 million incremental cost impact from tariffs, net of vendor negotiated offsets13 Fiscal Year 2025 (FY25) Outlook FY25 outlook projects net sales to be flat to down low-single digits, with adjusted EBITDA between $18.0 million and $22.0 million | Metric | FY25 Outlook | | :-------------------------- | :------------------------------------ | | Net Sales | Approximately flat to down low-single digits | | Comparable Sales | Down low to mid-single digits | | Adjusted EBITDA | $18.0 million to $22.0 million | | Total Capital Expenditures | $20.0 million to $25.0 million | | Net New Store Growth | 1 to 5 new stores | Company Information This section provides an overview of J.Jill, details for the Q2 FY25 conference call, and contact information About J.Jill, Inc. J.Jill is a national lifestyle brand offering apparel, footwear, and accessories through over 200 stores and an e-commerce platform - J.Jill is a national lifestyle brand providing apparel, footwear, and accessories for women, characterized by an easy, thoughtful, and inspired style18 - Operates over 200 stores nationwide and a robust e-commerce platform, offering a high-touch customer experience18 Conference Call Details Details for the Q2 FY25 conference call, including dial-in and webcast information, and replay availability, are provided - Conference call for Q2 FY25 results held on September 3, 2025, at 8:00 a.m. ET, with dial-in and webcast options available. A replay is accessible until September 10, 20251617 Contacts Contact information for Investor Relations and Business and Financial Media is provided for inquiries - Investor Relations contact: Caitlin Churchill (ICR, Inc.). Business and Financial Media contact: Ariel Kouvaras (Sloane & Company)64 Non-GAAP Financial Measures & Reconciliations This section defines J.Jill's non-GAAP financial measures and provides reconciliations to their most directly comparable GAAP measures Non-GAAP Definitions and Rationale J.Jill uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to assess performance and aid planning, acknowledging their limitations - J.Jill uses non-GAAP measures (Adjusted EBITDA, Adjusted Income from Operations, Adjusted Net Income, Adjusted Net Income per Diluted Share, Free Cash Flow) to supplement GAAP, aiding management in assessing operating performance, planning, and forecasting19 - Non-GAAP measures have limitations as analytical tools and should not be considered alternatives to GAAP measures. Reconciliations to the most directly comparable GAAP measures are provided20 Reconciliation of GAAP Net Income to Adjusted EBITDA This section reconciles GAAP Net Income to Adjusted EBITDA for both the thirteen and twenty-six week periods Thirteen Weeks Ended August 2, 2025 Adjusted EBITDA for Q2 FY25 was $25.6 million (16.6% margin), a decrease from $30.2 million (19.4% margin) in Q2 FY24 | Metric | Q2 FY25 (Thousands) | Q2 FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net Income | $10,515 | $8,191 | | Depreciation and amortization | $5,305 | $5,007 | | Income tax provision | $4,033 | $3,075 | | Interest expense | $2,733 | $3,724 | | Loss on extinguishment of debt | $0 | $8,570 | | Other non-recurring items | $1,285 | $215 | | Adjusted EBITDA | $25,589 | $30,187 | | Adjusted EBITDA Margin | 16.6% | 19.4% | Twenty-Six Weeks Ended August 2, 2025 Adjusted EBITDA for YTD FY25 was $52.9 million (17.2% margin), down from $65.8 million (20.8% margin) in the prior year | Metric | YTD FY25 (Thousands) | YTD FY24 (Thousands) | | :-------------------------------- | :------------------- | :------------------- | | Net Income | $22,207 | $24,887 | | Depreciation and amortization | $10,654 | $10,834 | | Income tax provision | $9,002 | $9,303 | | Interest expense | $5,522 | $10,160 | | Loss on extinguishment of debt | $0 | $8,570 | | Other non-recurring items | $2,660 | $438 | | Adjusted EBITDA | $52,924 | $65,834 | | Adjusted EBITDA Margin | 17.2% | 20.8% | Reconciliation of GAAP Operating Income to Adjusted Income from Operations Adjusted Income from Operations decreased for both Q2 FY25 and YTD FY25, primarily due to equity-based compensation and non-recurring items | Metric | Q2 FY25 (Thousands) | Q2 FY24 (Thousands) | YTD FY25 (Thousands) | YTD FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | :------------------- | :------------------- | | Operating Income | $16,783 | $23,022 | $35,845 | $51,394 | | Equity-based compensation expense | $1,506 | $1,696 | $2,472 | $2,950 | | Other non-recurring items | $1,285 | $215 | $2,660 | $438 | | Adjusted Income from Operations | $19,623 | $24,936 | $41,152 | $54,535 | Reconciliation of GAAP Net Income to Adjusted Net Income This section reconciles GAAP Net Income to Adjusted Net Income for both the thirteen and twenty-six week periods Thirteen Weeks Ended August 2, 2025 Adjusted Net Income for Q2 FY25 was $12.3 million ($0.81 diluted EPS), down from $15.8 million ($1.05 diluted EPS) in Q2 FY24 | Metric | Q2 FY25 (Thousands) | Q2 FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net Income | $10,515 | $8,191 | | Loss on extinguishment of debt | $0 | $8,570 | | Other adjustments (net of tax) | $1,830 | -$927 | | Adjusted Net Income | $12,345 | $15,834 | | Adjusted Net Income per Diluted Share | $0.81 | $1.05 | Twenty-Six Weeks Ended August 2, 2025 Adjusted Net Income for YTD FY25 was $25.9 million ($1.69 diluted EPS), a decrease from $33.4 million ($2.27 diluted EPS) in the prior year | Metric | YTD FY25 (Thousands) | YTD FY24 (Thousands) | | :-------------------------------- | :------------------- | :------------------- | | Net Income | $22,207 | $24,887 | | Loss on extinguishment of debt | $0 | $8,570 | | Other adjustments (net of tax) | $3,719 | -$391 | | Adjusted Net Income | $25,926 | $33,416 | | Adjusted Net Income per Diluted Share | $1.69 | $2.27 | Reconciliation of GAAP Cash from Operations to Free Cash Flow Free Cash Flow increased for Q2 FY25 but decreased significantly for the twenty-six week period compared to the prior year | Metric | Q2 FY25 (Thousands) | Q2 FY24 (Thousands) | YTD FY25 (Thousands) | YTD FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | :------------------- | :------------------- | | Net cash provided by operating activities | $19,362 | $16,381 | $24,698 | $37,880 | | Less: Capital expenditures | ($2,752) | ($2,248) | ($5,476) | ($4,560) | | Free Cash Flow | $16,610 | $14,133 | $19,222 | $33,320 | Consolidated Financial Statements This section presents J.Jill's consolidated statements of operations, balance sheets, and selected cash flow information Consolidated Statements of Operations and Comprehensive Income This section provides detailed consolidated statements of operations for the thirteen and twenty-six week periods For the Thirteen Weeks Ended The consolidated statement of operations for Q2 FY25 shows net sales of $154.0 million, gross profit of $105.4 million, and net income of $10.5 million | Metric | August 2, 2025 (Thousands) | August 3, 2024 (Thousands) | | :-------------------------------- | :------------------------- | :------------------------- | | Net sales | $153,987 | $155,242 | | Gross profit | $105,357 | $109,394 | | Operating income | $16,783 | $23,022 | | Net income | $10,515 | $8,191 | | Diluted EPS | $0.69 | $0.54 | For the Twenty-Six Weeks Ended The consolidated statement of operations for YTD FY25 shows net sales of $307.6 million, gross profit of $215.7 million, and net income of $22.2 million | Metric | August 2, 2025 (Thousands) | August 3, 2024 (Thousands) | | :-------------------------------- | :------------------------- | :------------------------- | | Net sales | $307,611 | $316,755 | | Gross profit | $215,714 | $227,131 | | Operating income | $35,845 | $51,394 | | Net income | $22,207 | $24,887 | | Diluted EPS | $1.45 | $1.69 | Consolidated Balance Sheets As of August 2, 2025, total assets increased to $436.5 million, with cash and cash equivalents at $45.5 million, and total shareholders' equity at $121.5 million | Metric | August 2, 2025 (Thousands) | February 1, 2025 (Thousands) | | :-------------------------- | :------------------------- | :--------------------------- | | Cash and cash equivalents | $45,523 | $35,427 | | Inventories, net | $55,268 | $61,295 | | Total current assets | $130,359 | $122,030 | | Total assets | $436,508 | $417,699 | | Total current liabilities | $117,164 | $127,108 | | Long-term debt, net | $70,016 | $69,419 | | Total liabilities | $315,007 | $311,930 | | Total shareholders' equity | $121,501 | $105,769 | Selected Cash Flow Information This section provides selected cash flow information for the thirteen and twenty-six week periods, detailing operating, investing, and financing activities | Metric | Q2 FY25 (Thousands) | Q2 FY24 (Thousands) | YTD FY25 (Thousands) | YTD FY24 (Thousands) | | :-------------------------------- | :------------------ | :------------------ | :------------------- | :------------------- | | Net cash provided by operating activities | $19,362 | $16,381 | $24,698 | $37,880 | | Net cash used in investing activities | ($2,752) | ($2,248) | ($5,476) | ($4,560) | | Net cash used in financing activities | ($2,332) | ($62,784) | ($9,126) | ($67,026) | | Net change in cash and cash equivalents | $14,278 | ($48,651) | $10,096 | ($33,706) | | Cash and cash equivalents and restricted cash (End of Period) | $45,886 | $28,834 | $45,886 | $28,834 | Forward-Looking Statements This section contains forward-looking statements subject to various risks and uncertainties, with a caution against undue reliance - Forward-looking statements are based on current expectations and assumptions, inherently subject to risks and uncertainties, including economic conditions, consumer spending, competition, and tariffs21 - J.Jill cautions investors not to place considerable reliance on forward-looking statements and undertakes no obligation to publicly update or revise them21
J.Jill(JILL) - 2026 Q2 - Quarterly Results