J.Jill (JILL) investor relations material

Executive summary

• Q1 2026 net sales declined 6.0% year-over-year to $144.4 million, with comparable sales down 8.7% and gross margin dropping to 68.3% due to $4.7 million in incremental tariff costs and higher promotions.

• Adjusted EBITDA was $16.7 million (11.6% margin), down from $27.3 million (17.8% margin) in Q1 2025; net income was $4.7 million, a 59.9% decrease year-over-year.

• Management remains confident in gradual, sequential improvement, supported by new product assortments, marketing initiatives, and ongoing transformation efforts.

• Growth in new-to-brand, younger, and higher-spending customers was observed, mainly through retail channels.

• Leadership strengthened with a new Chief Marketing Officer and early positive response to the J.Jill Collective loyalty program.

Financial highlights

• Q1 2026 sales were $144.4 million, gross profit was $98.7 million (68.3% margin), and adjusted net income per diluted share was $0.45, down from $0.88 last year.

• Operating income was $8.8 million (6.1% margin), down from $19.1 million (12.4% margin) in Q1 2025.

• Operating cash flow was $1.7 million; free cash flow was an outflow of $1.1 million; ending cash was $36.3 million.

• SG&A expenses decreased by $1.4 million, mainly due to lower consulting and marketing costs, but rose as a percentage of sales.

• Interest expense declined to $1.9 million due to refinancing at lower rates.

Outlook and guidance

• Full-year 2026 sales expected to be flat to down 2%, comparable sales down 1% to 3%, gross margin to decline by ~50 basis points, and adjusted EBITDA guidance of $70–$75 million.

• Q2 2026 sales expected to decline 1% to 3%, comparable sales down 2% to 4%, gross margin to decline by ~100 basis points, and adjusted EBITDA of $18–$20 million.

• CapEx for the year revised to $20–$25 million, with net new store openings expected between one and five.

• Tariff costs for fiscal 2026 expected at $14.5 million, with assumptions for declining tariff rates through the year.

• Management expects continued pressure from macroeconomic uncertainty, tariffs, and shifting consumer demand.