J.Jill (JILL) Q2 2027 earnings summary

Executive summary

• Net sales for Q2 FY26 rose 0.5% year-over-year to $154.8 million, with comparable sales also up 0.5%, driven by a higher full-price mix and reduced promotional activity.

• Gross margin surged to 76.8%, up 840 bps year-over-year, aided by a $13.3 million IEEPA tariff refund; excluding refunds, gross margin was 68.3%, flat year-over-year.

• Adjusted EBITDA for Q2 FY26 was $32.8 million (21.2% margin), or $20.1 million excluding tariff refunds and related investments.

• Net income for Q2 FY26 was $16.8 million, up 59.5% from $10.5 million in Q2 FY25; adjusted EPS was $1.24, up from $0.81.

• Store count at quarter-end was 255, up from 247 a year ago, with direct to consumer sales representing 47.1% of total sales.

Financial highlights

• SG&A expenses increased to $94.6 million, up from $88.6 million year-over-year, mainly due to higher compensation, marketing, and occupancy costs.

• Free cash flow for Q2 FY26 was $44.0 million, up from $16.6 million in Q2 FY25; ending cash was $76.9 million.

• Interest expense decreased to $1.9 million from $2.7 million, reflecting a lower debt balance.

• Inventory at quarter-end was $52.6 million, down from $55.3 million a year ago.

• Quarterly dividend of $0.09 per share declared and paid; $2.7 million in dividends paid year-to-date.

Outlook and guidance

• Q3 FY26 net sales expected to increase 3–5% year-over-year; comparable sales up 1–3%; adjusted EBITDA guidance is $20–22 million.

• FY26 net sales expected to be flat to up 2%; comparable sales down 1% to up 1%; gross margin expected to rise 100–150 basis points; adjusted EBITDA forecasted at $75–80 million.

• FY26 free cash flow projected at ~$40 million; capital expenditures $20–25 million; net new store growth of 1–3.

• The company intends to continue quarterly cash dividends, subject to market conditions and Board discretion.

• Management expects ongoing strategic initiatives in ecommerce and inventory enhancement to impact future results.