J.Jill, Inc. reported a 6.0% decrease in net sales to $144.427 million for the first quarter of fiscal 2026, missing the analyst consensus estimate of $146.264 million. This compares to sales of $153.624 million in the prior year. Comparable sales fell 8.7%, with retail sales down 4% and direct sales decreasing 8%. Net income declined to $4.7 million, or $0.31 per diluted share, from $11.7 million, or $0.76 per diluted share, in the same period last year. Adjusted earnings per share of $0.45 missed the analyst estimate of $0.54. The company cited approximately $4.7 million of incremental net tariff costs as a factor impacting gross margin, which decreased to 68.3% from 71.8%. Mary Ellen Coyne, President and Chief Executive Officer of J.Jill, Inc., stated that the results were in line with expectations and that early indicators suggest the company's strategy is gaining traction.

Financial Performance

Operating income for the quarter was $8.8 million, down from $19.1 million in the first quarter of fiscal 2025. Adjusted EBITDA decreased to $16.7 million from $27.3 million in the prior year, with an Adjusted EBITDA margin of 11.6% compared to 17.8%. Selling, general and administrative expenses were $89.7 million, slightly lower than the $91.1 million reported in the prior year.

Balance Sheet and Cash Flow

The company ended the quarter with a cash balance of $36.3 million. Inventory at the end of the first quarter was $63.9 million, up from $60.6 million at the end of the first quarter of fiscal 2025, including approximately $5.5 million of net tariff costs. Net cash provided by operating activities was $1.7 million, compared to $5.3 million in the prior year, while Free Cash Flow was an outflow of $1.1 million compared to an inflow of $2.6 million.

Strategic Initiatives and Outlook

During the quarter, J.Jill repurchased 68,500 shares of common stock at an average price of $11.55 per share, totaling approximately $0.8 million. As of May 2, 2026, the company had $13.3 million remaining under its $25.0 million share repurchase authorization. The Board declared a quarterly cash dividend of $0.09 per share, payable on July 8, 2026, to shareholders of record as of June 24, 2026.

The company is rolling out a new loyalty program, J. Jill Collective, and has hired a new Chief Marketing Officer to boost brand evolution. For the second quarter of fiscal 2026, the company expects net sales to be between $149.367 million and $152.447 million. Adjusted EBITDA is projected to be between $18 million and $20 million. For the full year, J.Jill updated its outlook for net sales to be between $584.618 million and $596.549 million. The company reaffirmed its Adjusted EBITDA outlook to be between $70 million and $75 million.