J.Jill Reports 4.9% Decline in Net Sales and 30% Drop in Net Income for Thirteen Weeks Ended May 3, 2025

J.Jill, Inc. reported a decline in financial performance for the thirteen weeks ended May 3, 2025, with net sales decreasing by 4.9% to $153.6 million, down from $161.5 million in the same period last year. The decrease in sales was attributed to a 5.7% drop in total company comparable sales, primarily driven by a reduced full-price mix and increased promotional activities. Gross profit also fell by 6.3% to $110.4 million, resulting in a gross margin of 71.8%, down from 72.9% a year earlier. Operating income decreased significantly by 32.8% to $19.1 million, while net income dropped 30% to $11.7 million, leading to a net income per share of $0.76, compared to $1.17 in the prior year.

In terms of operational metrics, J.Jill operated 249 retail stores at the end of the reporting period, an increase from 244 stores a year prior. The company’s direct sales channel contributed 46.7% of net sales, a slight decrease from 47.0% in the previous year. Selling, general, and administrative expenses rose by 2.2% to $91.1 million, primarily due to increased professional services and information systems costs. The company recorded impairment charges of $0.2 million for long-lived assets, a decrease from $0.3 million in the prior year.

Strategically, J.Jill has been focusing on enhancing its operational capabilities, including the upgrade of its order management system, which was completed in March 2025. This upgrade is expected to improve customer experience and operational efficiency. The company also initiated a share repurchase program in December 2024, under which it repurchased 186,800 shares for $3.5 million during the quarter. Additionally, J.Jill declared a quarterly cash dividend of $0.08 per share, totaling $1.2 million, reflecting its commitment to returning value to shareholders despite an accumulated deficit.

Looking ahead, J.Jill's management expressed cautious optimism regarding future performance, emphasizing the importance of adapting to consumer preferences and market conditions. The company is closely monitoring economic trends, including inflation and consumer spending, which could impact sales. J.Jill plans to continue investing in its e-commerce platform and operational enhancements to drive growth. The company remains committed to maintaining liquidity, with $31.2 million in cash and $35.7 million available under its asset-based revolving credit facility as of the end of the reporting period.