J.Jill: Q1 sales decline, withdraws fiscal 2025 guidance due to uncertainty

J.Jill’s first quarter financial results revealed a decline in sales amidst a challenging retail landscape. The announcement also highlighted the recent appointment of Mary Ellen Coyne as the company's new chief executive officer and president, who shared her initial impressions and strategic outlook for the brand.

For the first quarter ended May 3, 2025, J.Jill reported a 4.9 percent decrease in net sales to 153.6 million dollars. Total company comparable sales, encompassing both store and direct-to-consumer channels, also fell by 5.7 percent. Direct-to-consumer net sales, which constituted 46.7 percent of total net sales, were down 5.4 percent.

Coyne noted her immediate immersion in the business, including engaging with teams, visiting stores, and speaking with associates and customers. "The fundamentals of this business are solid with a lean operating model, strengthening omni-channel capabilities, and a team committed to excellence. This foundation will serve us well as we navigate a challenging macro environment while establishing our plans for the future," she affirmed.

Gross profit for the quarter was 110.4 million dollars, resulting in a gross margin of 71.8 percent. The company recorded a net income of 11.7 million dollars, or 76 per diluted share, compared to 16.7 million dollars, or 1.16 dollars per diluted share, in the same period last year. Operating income also decreased to 19.1 million dollars from 28.4 million dollars.

A quarterly cash dividend of 8 cents per share was paid on April 16, 2025, and another 8 cents per share dividend was declared on June 3, 2025, payable on July 9, 2025.

Given the increased macroeconomic uncertainty and the recent leadership transition, J.Jill has decided to withdraw its prior fiscal year 2025 guidance. The Company will temporarily suspend providing forward guidance, with the exception of updated expectations for total capital expenditures, projected between 20 million dollars and 25 million dollars, and net new store growth of one to five new stores for the full fiscal year 2025. J.Jill closed three stores in the first quarter, bringing its total store count to 249 at quarter-end, compared to 244 in the prior year.