J.Jill (JILL) 4 Sep 24 2025 Q2 Earnings call transcript

In a recent earnings call, J.Jill Inc. reported a solid second quarter performance, showcasing a 1.7% increase in comparable sales and an adjusted EBITDA of $30.2 million. The company's resilience in the face of ongoing challenges in the retail industry is a testament to its disciplined operating model and strategic initiatives.

Key Themes and Trends

J.Jill's strong performance was driven by a healthy start to the period, with customers responding well to the early summer collection. The company's focus on its proprietary product lines, such as linen and cotton gauze franchises, and its core bottoms programs and sweaters, especially cardigan assortments and crochet and open stitch detailed sweaters, contributed significantly to the growth.

However, the company did face some challenges in July, with a noticeable shift in consumer demand. The management team responded by taking strategic actions to optimize yields, manage inventory, and prepare for the fall product launch. Despite these challenges, J.Jill remains confident in its strategic priorities, including the ongoing OMS project and new store openings.

Strategic Priorities

J.Jill continues to focus on its strategic initiatives, including its OMS project and new store openings. The company is committed to leveraging its deep understanding of its customer and her needs to deliver consistent, high-margin performance. The recent addition of Courtnee Chun to the Board of Directors further strengthens J.Jill's leadership team, bringing valuable experience in finance, strategy, and investor relations.

Financial Performance and Outlook

J.Jill's financial performance in Q2 was solid, with total company sales of $155 million, down 0.9% versus the previous year. The company generated $16 million of cash from operations and ended the quarter with $28 million in cash and no borrowings against the ABL.

Looking ahead, J.Jill is revising its guidance for the second half of the year, reflecting the current trends and macro environment. The company expects sales to be down 1% to up 2% in Q3 and adjusted EBITDA to be in the range of $23 million to $27 million. For the full year, J.Jill expects total revenue to be flat to plus 1%, gross margin to be down modestly, and adjusted EBITDA to be down 4% to 9% compared to the previous year.

Customer and Marketing

J.Jill's customer file declined slightly in Q2, but the company saw nice growth in its direct-to-consumer customer file, particularly in new-to-brand performance. The company launched its One Wardrobe. No Limits campaign in late spring and saw positive dynamics on its reach campaign elements, showcasing brand awareness and attracting new customers to the J.Jill value proposition. The introduction of the J.Jill social circle, a collection of brand right influencers, also yielded strong response in paid and owned media efforts.

Conclusion

J.Jill's second quarter performance underscores its commitment to delivering strong product assortments that resonate with its customer and meet her needs for versatility and trend-right items. Despite challenges in the retail landscape, the company remains focused on its strategic priorities and is taking a disciplined approach to managing its business. With a strong balance sheet and a clear vision for the future, J.Jill is well positioned to navigate the ever-changing retail environment and continue its growth trajectory.