Net sales for the quarter ended May 2, 2026, fell 6 per cent year on year (YoY) to $144.4 million. Total company comparable sales, including store and direct-to-consumer (DTC) channels, declined 8.7 per cent, while direct-to-consumer (DTC) net sales decreased 8.3 per cent and accounted for 45.6 per cent of total revenue.
US women’s apparel retailer J.Jill reported weaker Q1 FY26 results, with net sales falling 6 per cent to $144.4 million and comparable sales down 8.7 per cent amid softer demand and higher tariff costs.
Gross margin narrowed to 68.3 per cent, while net income dropped to $4.7 million.
Despite the decline, the company reaffirmed its FY26 outlook, expecting adjusted EBITDA of $70-$75 million.
Commenting on the results, Mary Ellen Coyne, president and CEO of J.Jill, said: “We delivered first quarter results in line with our expectations and are encouraged by early indicators that our strategy is gaining traction.”
She added that the company is balancing speed with careful deliberation as it evolves, making the best decisions for the business and its customers. “I am confident in our ability to drive gradual, sequential improvement and position J.Jill for sustainable growth,” said Coyne.
Operating income and earnings decline sharply
The gross profit declined to $98.7 million from $110.4 million a year earlier, while gross margin contracted to 68.3 per cent from 71.8 per cent. The company said it incurred approximately $4.7 million in incremental net tariff costs during the quarter compared to the prior-year period, J.Jill said in a press release.
The selling, general and administrative (SG&A) expenses decreased slightly to $89.7 million from $91.1 million. However, SG&A as a percentage of net sales rose to 62.1 per cent from 59.3 per cent due to lower revenue.
The operating income dropped sharply to $8.8 million, with operating margin narrowing to 6.1 per cent. Adjusted income from operations declined to $10.9 million.
Net income fell to $4.7 million, compared with $11.7 million in the year-ago quarter. Diluted earnings per share (EPS) decreased to $0.31 from $0.76, while adjusted diluted EPS declined to $0.45 from $0.88.
J.Jill opened one new store and closed two stores during the quarter, ending the period with 255 stores, up from 249 stores a year earlier.
FY26 outlook reflects continued demand uncertainty
Looking ahead, the company expects second quarter (Q2) FY26 net sales to decline between 1 per cent and 3 per cent, with comparable sales projected to decrease 2 per cent to 4 per cent. Gross margin is expected to decline by approximately 100 basis points (bps), reflecting around $4 million of tariff-related costs. Adjusted EBITDA is forecast at $18 million to $20 million.
For the full fiscal year 2026, J.Jill reaffirmed its outlook. Net sales are expected to range from flat to down 2 per cent compared with fiscal 2025, while comparable sales are projected to decline 1 per cent to 3 per cent. Gross margin is expected to decrease by approximately 50 bps, incorporating an estimated $14.5 million net tariff impact.
The company continues to expect adjusted EBITDA of $70 million to $75 million and free cash flow of approximately $20 million. It now projects capital expenditure of $20 million to $25 million and net new store growth of one to five stores during the fiscal year.
The outlook assumes an average 20 per cent reciprocal tariff rate on applicable inventory received before February 28, 2026, an average 10 per cent tariff rate on inventory received through Q2, and an average 15 per cent tariff rate thereafter, added the release.
Fibre2Fashion News Desk (SG)
