J.Jill, Inc.

Q1 total company sales were about $144 million, down 6% versus Q1 2025, and comparable sales declined 8.7%. Gross profit was about $98.7 million, down about $12 million year over year, and gross margin was 68.3%, down 350 basis points, driven by about $4.7 million of net tariff costs and a higher mix of markdown sales. SG&A was about $90 million versus approximately $91 million last year, adjusted EBITDA was $16.7 million versus $27.3 million, interest expense was $1.9 million versus $2.8 million, and adjusted EPS was $0.45 versus $0.88. For Q2, the company expects sales down 1% to down 3%, comps down 2% to down 4%, adjusted EBITDA of $18 million to $20 million, and gross margin down about 100 basis points, mainly from about $4 million of net tariff costs. Full-year guidance was reaffirmed for sales flat to down 2%, comps down 1% to down 3%, gross margin down about 50 basis points, adjusted EBITDA of $70 million to $75 million, and free cash flow of about $20 million. CapEx guidance was lowered to $20 million to $25 million from about $25 million, and net new store openings are now expected at 1 to 5 versus about 5 previously.

Mary Coyne framed the quarter as the start of an evolution in the brand, saying J.Jill is focused on expanding the customer file through product assortment changes, a better customer journey, and improved operating capabilities. She said the company is making thoughtful changes rather than fast changes, emphasizing that the first quarter was dominated by legacy product but gave useful learnings, especially from stores, and that early second-quarter reads on the summer assortment are encouraging. Her tone was constructive but cautious: she repeatedly stressed that transformation takes time, while pointing to green shoots in new-to-brand growth, accessories, jackets, and stronger full-price response when the product and color mix are right.

Mark Webb said Q1 sales fell 6% and comps fell 8.7%, with direct sales down about 8% and retail down about 4%, while gross margin compression was driven by tariff costs and markdown mix. He noted SG&A was about $90 million, helped by a timing shift in catalog spend and lower project costs, and that adjusted EBITDA declined to $16.7 million. On the balance sheet, he said cash from operations was about $1.7 million, ending cash was about $36.3 million, free cash flow was an outflow of $1.1 million, inventories excluding tariffs were down about 3.5%, and the company repurchased 68,500 shares for about $790,000 with roughly $13 million left on authorization. He also said the company expects about $14.5 million of net tariff costs for fiscal 2026, no refund benefit in guidance yet, and a more gradual margin and profit improvement into Q3 and Q4 as product and inventory positioning improve.

Analysts focused on whether weak Q1 demand was mainly macro-driven or assortment-driven, and management said the customer is cautious and choiceful, but the bigger fix is internal: better product, more color, more tunics, and better digital storytelling to convert traffic. Questions also covered the direct channel, where management said stores are currently stronger and the online business remains more price sensitive, though they are trying to move it toward more full-price selling. Another theme was store growth: management lowered the net opening outlook because of general uncertainty and mall changes, not because of a change in confidence in the longer-term 300-store goal, and said new stores are performing better in reentry markets. They also said the new non-tender loyalty program, J.Jill Collective, has had a strong early response and will be rolled out more broadly later in the year.