Financial Data and Key Metrics Changes - Total company sales for Q1 were approximately $154 million, down 4.9% compared to Q1 2024, with comparable sales declining 5.7% [13] - Q1 gross profit was about $110 million, down approximately $7 million compared to Q1 2024, resulting in a gross margin of 71.8%, down 110 basis points year-over-year [14][15] - Adjusted EBITDA for the quarter was $27.3 million, compared to $35.6 million in Q1 2024 [15] - Adjusted net income per diluted share was $0.88, down from $1.22 last year, reflecting a diluted share count increase from 14.4 million to 15.4 million [16] Business Line Data and Key Metrics Changes - Store sales for Q1 were down about 4.4% compared to Q1 2024, while direct sales, which represented about 47% of total sales, were down 5.4% [14] - The decline in direct sales was attributed to adverse weather impacting store traffic and the OMS cutover affecting the direct channel [14] Market Data and Key Metrics Changes - The macroeconomic environment remained volatile, with uncertainty related to global trade policy affecting customer behavior, particularly in April and May [12][13] - Total company sales for the quarter reflected a $2 million negative impact from the OMS cutover [14] Company Strategy and Development Direction - The company is focused on leveraging investments made in stores, marketing, and systems to improve performance [10] - There is a commitment to maintaining a disciplined approach to inventory management and strategic pricing to mitigate tariff impacts [20][22] - The company is evaluating nonessential capital spending while maintaining marketing investments to support customer engagement [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resiliency of the customer base despite near-term uncertainties related to tariffs and macroeconomic conditions [13][20] - The company has withdrawn its prior full-year guidance to allow the new CEO time to assess the business [19][56] - Management noted that while sales are down mid-single digits through May, they expect to see improvements as comparisons become easier [19][55] Other Important Information - The company closed three stores during Q1 and did not open any new stores, resulting in a total of 249 stores at the end of the quarter [18][19] - Capital expenditures for the quarter were $2.7 million, focused primarily on stores and the completion of the OMS project [18] Q&A Session Summary Question: What strategies were implemented during tariffs at J. McLaughlin, and what are the opportunities for J. Jill? - Management discussed strategies around tariff exposure, including vendor negotiations and order adjustments to mitigate costs [26][28] Question: How is the company planning to roll out new products while managing tariff dynamics? - Management indicated that while the product line is bought through the end of the year, small adjustments can be made, with significant impacts expected in 2026 [41] Question: What is the outlook for new store openings and their performance? - Management confirmed that new stores opened in the past year are performing as expected, and they remain optimistic about future store growth opportunities [71][74] Question: How has weather impacted customer behavior and sales? - Management noted that weather has had a general impact on customer traffic, with no significant regional differences observed [65] Question: What are the plans for the ship-from-store initiative? - Management emphasized the importance of managing shipping costs while ramping up the ship-from-store capability to fulfill previously unfulfilled demand [62][63]