J.Jill sales drop 6 percent for first quarter

The US womenswear retailer J.Jill, Inc. has announced its financial results for the first quarter of fiscal year 2026 ended May 2, 2026, revealing a decline in both net sales and profitability in line with company expectations.

Net sales for the first quarter of fiscal 2026 decreased 6 percent to 144.40 million dollars compared to the first quarter of fiscal 2025. Total company comparable sales, which includes comparable store and direct-to-consumer (D2C) sales, decreased by 8.7 percent for the period. Net sales for the D2C channel, which represented 45.6 percent of total revenue, fell 8.3 percent compared to the first quarter of fiscal 2025.

Mary Ellen Coyne, president and chief executive officer of J.Jill, stated: “We delivered first quarter results in line with our expectations and are encouraged by early indicators that our strategy is gaining traction. We are balancing speed with careful deliberation as we evolve – making the best decisions for our business and our customers. I am confident in our ability to drive gradual, sequential improvement and position J.Jill for sustainable growth.”

Income and profitability metrics decline

Gross profit for the first quarter was 98.70 million dollars compared to 110.40 million dollars in the first quarter of fiscal 2025. Gross margin contracted to 68.3 percent compared to 71.8 percent in the prior year period.

Net income for the period decreased to 4.70 million dollars, down from 11.70 million dollars in the first quarter of fiscal 2025. Net income per diluted share was 0.31 dollars, compared to 0.76 dollars in the first quarter of the prior year. Adjusted EBITDA for the quarter was 16.70 million dollars compared to 27.30 million dollars last year, yielding an adjusted EBITDA margin of 11.6 percent.

Retail footprint and financial outlook

During the first quarter of fiscal 2026, J.Jill opened one store and closed two stores, bringing its total store count to 255 locations. The retailer also repurchased 68,500 shares of common stock for approximately 0.80 million dollars. On June 3, 2026, the board declared a cash dividend of 0.09 dollars per share, payable on July 8, 2026.

For the second quarter of fiscal 2026, J.Jill expects net sales to decline 1 percent to 3 percent year-over-year (YoY), with comparable sales projected to decrease 2 percent to 4 percent. Gross margin is anticipated to contract by approximately 100 basis points, incorporating a 4.00 million dollar net cost impact from tariffs. Adjusted EBITDA is forecast between 18 million dollars and 20 million dollars.

For the full year of fiscal 2026, Coyne reaffirmed the company financial outlook for net sales, which are expected to be flat to down 2 percent YoY. Comparable sales are projected to decline 1 percent to 3 percent for the full year. Full-year gross margin is still expected to contract by approximately 50 basis points, factoring in 14.50 million dollars of tariff impacts, while adjusted EBITDA is projected to land between 70 million dollars and 75 million dollars.