J.Jill (JILL) investor relations material

Executive summary

• Q2 net sales were $154.0 million, down 0.8% year-over-year, with sequential monthly sales improvement and increased customer traffic.

• Gross margin for Q2 was 68.4%, down from 70.5% year-over-year, due to higher markdowns, promotions, and tariffs.

• Net income for Q2 was $10.5 million, up from $8.2 million last year, driven by lower interest expense and absence of debt extinguishment costs.

• Adjusted EBITDA for Q2 was $25.6 million (16.6% margin), down from $30.2 million (19.4% margin) a year ago.

• Strategic focus on expanding the customer base, evolving product assortment, enhancing the customer journey, and operational efficiency.

Financial highlights

• Q2 comparable sales declined 1.0% year-over-year; direct-to-consumer sales (46.4% of total) declined 2.2%.

• Operating income for Q2 was $16.8 million (10.9% margin), down from $23.0 million (14.8% margin) last year.

• Adjusted net income per diluted share was $0.81, compared to $1.05 last year.

• Cash and cash equivalents at Q2 end were $45.5 million, with $35.7 million available under the ABL Facility.

• Free cash flow for Q2 was $16.6 million; net cash from operations for 26 weeks was $24.7 million.

Outlook and guidance

• Q3 adjusted EBITDA expected between $18 million and $22 million, including $5 million in incremental tariff costs.

• Q3 sales projected to be flat to down low single digits; comps expected down low to mid-single digits.

• Gross margins anticipated to decline further due to tariff pressures.

• FY25 capital expenditures projected at $20–$25 million; plan to open one to five net new stores.

• Quarterly cash dividends of $0.08 per share declared and intended to continue, subject to conditions.