J.Jill's Q1 2025 Earnings Call: Unpacking Contradictions in Tariffs, Consumer Trends, and Omnichannel Strategies

Tariff impact and mitigation strategies, consumer behavior and promotional environment, omnichannel capabilities and OMS implementation, impact of tariffs and pricing strategy, and markdown strategy and promotion posture are the key contradictions discussed in J.Jill's latest 2025Q1 earnings call.



Financial Performance in Q1 2025:
- J.Jill reported total company sales of approximately $154 million for Q1 2025, down 4.9% compared to Q1 2024, with a 5.7% decline in comparable sales.
- The decline was attributed to adverse weather in February, the cutover to a new OMS system in March, and macroeconomic uncertainty affecting consumer spending.

Inventory and Supply Chain:
- Total reported inventories were up 14% at the end of Q1 2025 compared to the end of Q1 2024, with normalized inventory up 5%.
- The increase was primarily due to additional inventory investments made in response to supply chain disruptions in 2024.

Assortment and Customer Behavior:
- The company noted underperforming areas in the assortment and a customer who was more discerning in her spending due to macroeconomic uncertainty.
- This led to a larger impact on the direct channel from the OMS cutover and a migration to markdown selling, impacting gross margin.

Dividend and Share Repurchase:
- J.Jill maintained its quarterly dividend of $0.08 per share and repurchased 186,800 shares for approximately $3.5 million in Q1 2025.
- Despite the challenges, the company continues to deploy cash to shareholders, showing strong financial discipline.

Store Strategy and Expansion:
- J.Jill closed three stores during Q1 2025 and did not open any new stores, ending the quarter with 249 stores.
- The company expects to open between 1 and 5 net new stores in 2025, adjusting its store expansion plans due to some new deals pushing into 2026.