# J.Jill, Inc. (JILL) Q2 2025 Financial Results Summary
Quincy, Mass – September 3, 2025 – J.Jill, Inc. (NYSE:JILL) announced its financial results for the second quarter of fiscal year 2025.
### Summary of Financial Results for Q2 FY25
– **Net Sales**:
– Decreased **0.8%** to **$154.0 million** (Q2 FY24: **$155.2 million**).
– **Comparable Sales**:
– Decreased by **1.0%**.
– **Direct to Consumer Net Sales**:
– Represented **46.4%** of net sales and decreased **2.2%**.
– **Gross Profit**:
– Totaled **$105.4 million** (Q2 FY24: **$109.4 million**).
– Gross Margin decreased to **68.4%** (Q2 FY24: **70.5%**).
– **Selling, General & Administrative Expenses (SG&A)**:
– Increased to **$88.6 million** (Q2 FY24: **$86.3 million**).
– **Operating Income**:
– Decreased to **$16.8 million** (Q2 FY24: **$23.0 million**).
– Operating Margin decreased to **10.9%** (Q2 FY24: **14.8%**).
– Adjusted Income from Operations was **$19.6 million** (Q2 FY24: **$24.9 million**).
– **Interest Expense**:
– Decreased to **$2.7 million** (Q2 FY24: **$3.7 million**).
– Interest Income remained stable at **$0.5 million**.
– **Income Tax Provision**:
– Recorded at **$4.0 million** (Q2 FY24: **$3.1 million**).
– Effective Tax Rate increased to **27.7%** (Q2 FY24: **27.3%**).
– **Net Income**:
– Increased to **$10.5 million** (Q2 FY24: **$8.2 million**, adjusting for **$8.6 million** in previous period’s loss on extinguishment of debt).
– Net Income per Diluted Share was **$0.69** (Q2 FY24: **$0.54**).
– Adjusted Net Income per Diluted Share was **$0.81** (Q2 FY24: **$1.05**).
– **Adjusted EBITDA**:
– Decreased to **$25.6 million** (Q2 FY24: **$30.2 million**).
– Adjusted EBITDA Margin was **16.6%** (Q2 FY24: **19.4%**).
– **Store Count**:
– Closed two stores, ending with a total of **247 stores** (Q2 FY24: **244 stores**).
### Year-to-Date Results (26 Weeks Ending August 2, 2025)
– **Net Sales**:
– Decreased by **2.9%** to **$307.6 million** (26 weeks FY24: **$316.8 million**).
– **Comparable Sales**:
– Decreased by **3.5%**.
– **Direct to Consumer Net Sales**:
– Represented **46.6%** of net sales and decreased **3.8%**.
– **Gross Profit**:
– At **$215.7 million** (FY24: **$227.1 million**).
– Gross Margin decreased to **70.1%** (FY24: **71.7%**).
– **SG&A**:
– Increased to **$179.7 million** (FY24: **$175.4 million**).
– As a percentage of total net sales, SG&A was **58.4%** (FY24: **55.4%**).
– **Operating Income**:
– Decreased to **$35.8 million** (FY24: **$51.4 million**).
– Operating Margin was **11.7%** (FY24: **16.2%**).
– Adjusted Income from Operations was **$41.2 million** (FY24: **$54.5 million**).
– **Net Income**:
– Decreased to **$22.2 million** (FY24: **$24.9 million**, adjusting for previous loss on extinguishment of debt).
– Net Income per Diluted Share was **$1.45** (FY24: **$1.69**).
– Adjusted Net Income per Diluted Share was **$1.69** (FY24: **$2.27**).
### Dividend and Share Repurchase
– **Quarterly Dividend**:
– On June 3, 2025, J.Jill’s Board declared a quarterly cash dividend of **$0.08 per share**, payable on July 9, 2025.
– Following the end of Q2 FY25, on August 27, 2025, the Board declared another cash dividend of **$0.08 per share**, payable on October 1, 2025.
– **Share Repurchase**:
– J.Jill repurchased **68,440 shares** for **$1.0 million** and **255,240 shares** for **$4.5 million** during Q2 FY25.
– As of August 2, 2025, $20.0 million remained under the authorized $25.0 million share repurchase program.
### Outlook for Q3 FY25 and Fiscal 2025
– **Q3 FY25 Expectations**:
– Net sales expected to be flat to down low-single digits.
– Comparable sales anticipated to decline low to mid-single digits.
– Projected Adjusted EBITDA of between **$18.0 million** to **$22.0 million**.
– **Fiscal 2025 Expectations**:
– Total capital expenditures of **$20.0 million** to **$25.0 million**.
– Anticipating net new store growth of **1 to 5 new stores**.
### J.Jill, Inc. Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Amounts in thousands, except share and per share data)
| For the Thirteen Weeks Ended | ||
|---|---|---|
| August 2, 2025 | August 3, 2024 | |
| Net sales | $153,987 | $155,242 |
| Costs of goods sold (exclusive of depreciation and amortization) | 48,630 | 45,848 |
| Gross profit | 105,357 | 109,394 |
| Selling, general and administrative expenses | 88,569 | 86,314 |
| Impairment of long-lived assets | 5 | 58 |
| Operating income | 16,783 | 23,022 |
| Loss on extinguishment of debt | — | 8,570 |
| Interest expense | 2,733 | 3,724 |
| Interest income | (498) | (538) |
| Income before provision for income taxes | 14,548 | 11,266 |
| Income tax provision | 4,033 | 3,075 |
| Net income and total comprehensive income | $10,515 | $8,191 |
| Net income per common share: | ||
| Basic | $0.69 | $0.55 |
| Diluted | $0.69 | $0.54 |
| Weighted average common shares: | ||
| Basic | 15,254,411 | 14,906,662 |
| Diluted | 15,297,083 | 15,098,301 |
| Cash dividends declared per common share | $0.08 | $0.07 |
### J.Jill, Inc. Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share data)
| August 2, 2025 | February 1, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $45,523 | $35,427 |
| Accounts receivable | 6,478 | 5,017 |
| Inventories, net | 55,268 | 61,295 |
| Prepaid expenses and other current assets | 23,090 | 20,291 |
| Total current assets | 130,359 | 122,030 |
| Property and equipment, net | 52,485 | 55,325 |
| Intangible assets, net | 58,669 | 61,015 |
| Goodwill | 59,697 | 59,697 |
| Operating lease assets, net | 127,880 | 112,303 |
| Other assets | 7,418 | 7,329 |
| Total assets | $436,508 | $417,699 |
| Liabilities and Shareholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $47,236 | $51,980 |
| Accrued expenses and other current liabilities | 31,588 | 40,479 |
| Current portion of operating lease liabilities | 38,340 | 34,649 |
| Total current liabilities | 117,164 | 127,108 |
| Long-term debt, net of discount and current portion | 70,016 | 69,419 |
| Deferred income taxes | 12,657 | 9,389 |
| Operating lease liabilities, net of current portion | 114,129 | 104,751 |
| Other liabilities | 1,041 | 1,263 |
| Total liabilities | 315,007 | 311,930 |
| Commitments and contingencies | ||
| Shareholders’ Equity | ||
| Common stock, par value $0.01 per share; 50,000,000 shares authorized; 15,502,455 and 15,344,053 shares issued at August 2, 2025 and February 1, 2025 respectively; and 15,227,384 and 15,324,222 shares outstanding at August 2, 2025 and February 1, 2025, respectively | 157 | 153 |
| Additional paid-in capital | 240,830 | 242,781 |
| Treasury stock, at cost | (5,051) | (523) |
| Accumulated deficit | (114,435) | (136,642) |
| Total shareholders’ equity | 121,501 | 105,769 |
| Total liabilities and shareholders’ equity | $436,508 | $417,699 |
