J.Jill reports improving sales trends in Q2

J.Jill, Inc. announced its financial results for the second quarter of fiscal 2025, with CEO Mary Ellen Coyne noting sequential improvements in sales trends throughout the quarter. She highlighted that customer traffic improved and sales were boosted by the summer sale period, allowing the company to align its inventory with current trends ahead of the second half of the year.

For the second quarter, J.Jill's net sales decreased slightly by 0.8 percent to 154 million dollars, with total comparable sales falling by 1 percent. Direct-to-consumer net sales, which made up 46.4 percent of total sales, saw a 2.2 percent decline. Gross profit was 105.4 million dollars, resulting in a gross margin of 68.4 percent. The company reported an operating income of 16.8 million dollars, or 10.9 percent of net sales.

Despite the slight decrease in sales, J.Jill's net income for the quarter was 10.5 million dollars, or 69 cents per diluted share, an increase from the prior year's 8.2 million dollars net income.

Coyne expressed confidence in J.Jill’s operating model and customer base, stating that the company is focused on a strategic framework to expand its customer base by evolving product assortment, enhancing the customer journey, and improving internal operations to drive long-term, profitable growth.

J.Jill's board declared a quarterly cash dividend of 8 cents per share. Looking ahead to the third quarter of fiscal 2025, the company expects net sales to be flat or down in the low-single digits, with comparable sales down in the low to mid-single digits. Adjusted EBITDA for the quarter is projected to be between 18 million dollars and 22 million dollars. This guidance includes a 5 million dollars impact from tariffs. During the full fiscal year, J.Jill anticipates opening one to five new stores.