J.Jill, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Net sales for Q2 FY26 increased 0.5% to $154.8 million compared to $154.0 million in Q2 FY25.
• Total company comparable sales increased 0.5% in Q2 FY26.
• Direct-to-consumer net sales rose 1.9% in Q2 FY26, representing 47.1% of total net sales.
• Gross profit was $119.0 million in Q2 FY26 versus $105.4 million in Q2 FY25; gross margin was 76.8% compared to 68.4% in the prior year period.
• Excluding a $13.3 million pre-tax net benefit from IEEPA tariff refunds, Q2 FY26 gross margin was 68.3%.
• SG&A expenses were $94.6 million in Q2 FY26 versus $88.6 million in Q2 FY25; SG&A as a percentage of net sales was 61.1% compared to 57.5% in the prior year.
• Operating income was $24.3 million in Q2 FY26 compared to $16.8 million in Q2 FY25; operating income margin was 15.7% versus 10.9%.
• Adjusted Income from Operations was $27.1 million in Q2 FY26 compared to $19.6 million in Q2 FY25.
• Net income was $16.8 million in Q2 FY26 compared to $10.5 million in Q2 FY25.
• Net income per diluted share was $1.11 in Q2 FY26 compared to $0.69 in Q2 FY25.
• Adjusted Net Income per diluted share was $1.24 in Q2 FY26 compared to $0.81 in Q2 FY25.
• Adjusted EBITDA was $32.8 million in Q2 FY26 compared to $25.6 million in Q2 FY25; Adjusted EBITDA margin was 21.2% versus 16.6%.
• Adjusted EBITDA excluding tariff refunds and strategic investments was $20.1 million in Q2 FY26.
• For the 26 weeks ended August 1, 2026, net sales decreased 2.7% to $299.3 million compared to $307.6 million in the prior year period.
• Total company comparable sales decreased 4.2% for the 26 weeks ended August 1, 2026.
• Direct-to-consumer net sales decreased 3.2% for the 26 weeks ended August 1, 2026.
• Gross margin for the 26 weeks ended August 1, 2026 was 72.7% compared to 70.1% in the prior year period; excluding tariff refunds, it was 68.3%.
• Operating income for the 26 weeks ended August 1, 2026 was $33.0 million compared to $35.8 million in the prior year period; operating income margin was 11.0% versus 11.7%.
• Net income for the 26 weeks ended August 1, 2026 was $21.5 million compared to $22.2 million in the prior year period.
• Net income per diluted share for the 26 weeks ended August 1, 2026 was $1.43 compared to $1.45 in the prior year period.
• Adjusted Net Income per diluted share for the 26 weeks ended August 1, 2026 was $1.69 compared to $1.69 in the prior year period.
• Adjusted EBITDA for the 26 weeks ended August 1, 2026 was $49.5 million compared to $52.9 million in the prior year period; Adjusted EBITDA margin was 16.6% versus 17.2%.
• Adjusted EBITDA excluding tariff refunds and strategic investments for the 26 weeks ended August 1, 2026 was $36.8 million.
• Inventory at the end of Q2 FY26 was $52.6 million compared to $55.3 million at the end of Q2 FY25.
• Net cash provided by operating activities for the 13 weeks ended August 1, 2026 was $46.3 million compared to $19.4 million in the prior year period.
• Net cash provided by operating activities for the 26 weeks ended August 1, 2026 was $48.0 million compared to $24.7 million in the prior year period.
• Free Cash Flow for the 13 weeks ended August 1, 2026 was $44.0 million compared to $16.6 million in the prior year period.
• Free Cash Flow for the 26 weeks ended August 1, 2026 was $42.9 million compared to $19.2 million in the prior year period.
• The Company ended Q2 FY26 with a cash balance of $76.9 million.

Guidance and Future Outlook

• The Company raised its outlook for full-year fiscal 2026.
• Q3 FY26 Net Sales guidance is up 3% to 5% compared to fiscal 2025.
• Q3 FY26 Comparable Sales guidance is up 1% to 3% compared to fiscal 2025.
• Q3 FY26 Gross margin guidance is about flat compared to fiscal 2025.
• Q3 FY26 Adjusted EBITDA guidance is $20.0 million to $22.0 million.
• Full-year FY26 Net Sales guidance is flat to up 2% compared to fiscal 2025.
• Full-year FY26 Comparable Sales guidance is down 1% to up 1% compared to fiscal 2025.
• Full-year FY26 Gross margin guidance is up 100 to 150 basis points.
• Full-year FY26 Adjusted EBITDA guidance is $75 million to $80 million.
• Full-year FY26 Free cash flow guidance is approximately $40 million.
• Full-year FY26 Total capital expenditures guidance is approximately $20 million to $25 million.
• Full-year FY26 Net new store growth guidance is approximately 1 to 3 new stores.
• Outlook assumes an average 10% to 12.5% tariff rate for the remainder of fiscal 2026, resulting in approximately $1.0 million of favorability in the second half compared to prior assumptions.
• Tariff refunds are expected to be deployed toward strategic investments, primarily marketing to build the brand and accelerate file growth, split evenly between the third and fourth quarters.

Business Segments and Product Lines

• The Company is executing on three strategic priorities: evolving the product assortment, enhancing the customer journey, and advancing the way it works.
• The customer file is stabilizing, and new-to-brand acquisition is accelerating.
• The store count at the end of Q2 FY26 was 255 stores compared to 247 stores at the end of Q2 FY25.
• No stores were opened or closed in Q2 FY26.
• For the 26 weeks ended August 1, 2026, the Company opened one store and closed two stores.

Market and Competitive Landscape

• The Company operates in a highly competitive industry.
• Management is strategically investing in the business to position J.Jill for sustainable, long-term growth.
• The Company is utilizing tariff refunds to fund marketing investments aimed at accelerating file growth.

Risks and Challenges

• The press release notes risks regarding sensitivity to economic conditions and discretionary consumer spending.
• Risks include the impact of pandemics, health crises, or natural disasters.
• Challenges include the ability to anticipate and respond to changing customer preferences and fashion trends.
• Risks include maintaining brand image and engaging customers in a competitive industry.
• Risks include the ability to optimize omnichannel operations and realize benefits from technology investments.
• Risks include interruptions in foreign sourcing operations and fluctuations in raw material prices or sourcing costs.
• Risks include the impact of new or increased tariffs.
• Risks include management succession and the fact that the Company is no longer a controlled company.

Management Commentary and Tone

• Mary Ellen Coyne, President and CEO, stated that Q2 results reflect progress across strategic priorities and that sales exceeded expectations.
• Management noted that underlying profitability was at the high end of the outlook before the benefit of tariff refunds.
• Management expressed pleasure with the momentum and confidence in the senior team's execution.
• Management described the current phase as early stages of evolution but highlighted strategic investments for long-term growth.

Other Key Points

• The Company received $13.3 million in net tariff refunds in Q2 FY26, which included $0.6 million of interest income.
• The Company repurchased 99,902 shares for $1.5 million during the 13 weeks ended August 1, 2026, and 168,402 shares for $2.3 million during the 26 weeks ended August 1, 2026.
• As of August 1, 2026, $11.8 million remained under the $25.0 million share repurchase program, which expires December 6, 2026.
• The Board declared a quarterly cash dividend of $0.09 per share on June 3, 2026, payable July 8, 2026.
• The Board declared a quarterly cash dividend of $0.09 per share on September 2, 2026, payable October 7, 2026.
• The Company is utilizing tariff refunds to fund strategic investments and elevated fuel costs.