Executive Summary

Q1 FY2026 results: net sales $153.6M, gross margin 71.8%, GAAP diluted EPS $0.76; adjusted EPS $0.88; adjusted EBITDA $27.3M .
EPS was roughly in line with S&P Global consensus ($0.86 vs. $0.88 actual), while revenue missed ($156.77M est. vs. $153.62M actual); 6 estimates for each metric. Revenue −4.9% YoY on softer comps and OMS cutover impacts .
Management withdrew full-year FY2025 guidance on the call amid macro and operational headwinds, a negative stock-reaction catalyst alongside the revenue miss .
New CEO Mary Ellen Coyne emphasized strengthening omni-channel, product evolution, and inventory alignment; company repurchased 186,800 shares for ~$3.5M in Q1 and maintained $21M remaining authorization; store count ended at 249 .

What Went Well and What Went Wrong

What Went Well

Gross margin remained very strong at 71.8% despite topline pressure, reflecting disciplined pricing and inventory management .
Adjusted EPS delivered $0.88, in line/slightly above consensus EPS of ~$0.86, supported by SG&A discipline and lower interest expense YoY .
Management reiterated commitment to shareholder returns (dividend continuity and buybacks: 186,800 shares at $18.84 avg., $21M remaining authorization) and highlighted omni-channel strengths. Quote: “The fundamentals of this business are solid with a lean operating model, strengthening omni-channel capabilities…” — Mary Ellen Coyne .

What Went Wrong

Revenue missed Street by ~2.0% and declined 4.9% YoY; comps were weak and OMS cutover plus adverse weather impacted traffic and sales cadence .
Full-year FY2025 guidance was withdrawn, reducing near-term visibility and contributing to a negative stock reaction .
Operating income margin compressed vs prior year given lower sales and higher SG&A, with Q1 operating income $19.1M vs $28.4M in Q1 FY2024 .

Financial Results

Revenue, EPS, Margins vs prior periods and estimates

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026	Notes
Revenue ($USD Millions)	$151.3	$142.8	$153.6	Estimates for Q1: $156.77*; miss ~2.0%
GAAP Diluted EPS ($)	$0.80*	$0.15	$0.76	Q1 EPS est.: $0.86*; in line/slight beat
Adjusted EPS ($)	N/A	N/A	$0.88
Gross Margin (%)	71.4%	66.3%	71.8%
Operating Income ($USD Millions)	$19.2	$5.1	$19.1
Adjusted EBITDA ($USD Millions)	$26.8	N/A	$27.3

S&P Global estimates: Q1 FY2026 EPS $0.865*, Revenue $156.77M*, # of estimates: 6 (EPS), 6 (Revenue)* .
S&P Global actuals used in select cells marked with *; Values retrieved from S&P Global.

YoY and QoQ context for Q1 FY2026

Revenue YoY vs Q1 FY2024: $153.6M vs $161.5M (−4.9%) .
Gross margin steady YoY (71.8% vs 72.9% prior-year), up sharply QoQ (66.3% in Q4 FY2024) .

KPIs

Store count: 249 at quarter-end (closed 3 stores in Q1), vs 244 in prior-year period .
Inventory: $60.6M at quarter-end; repurchased 186,800 shares for ~$3.5M; remaining $21M under $25M authorization .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	Q1 FY2026	Decline 1%–4% vs Q1 FY2024	Actual $153.6M	Actual delivered; near mid-point of range
Comparable Sales	Q1 FY2026	Decline 2%–5% vs prior year	Not disclosed quantitatively in press release; comps down mid-single digits per call context	Met within guided decline band
Adjusted EBITDA	Q1 FY2026	$25M–$27M	$27.3M actual	Raised vs top end (beat high end)
FY2025 (Full Year)	FY2025	Prior directional view (cautious)	Guidance withdrawn on Q1 call	Withdrawn

Note: Q2 FY2025 press release provided Q3 FY2025 outlook (Net sales flat to down low-single digits; comps down low- to mid-single digits; Adjusted EBITDA $18–$22M; ~$5M tariff impact net of offsets) for forward context .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY2024, Q4 FY2024)	Current Period (Q1 FY2026)	Trend
OMS implementation	Q4: OMS rollout initiated, near-term disruption anticipated; planning prudently	OMS cutover cited among revenue headwinds; stabilization in progress	Near-term headwind moderating
Inventory discipline	Q3: normalized inventories; early shipping to avoid Red Sea delays	Took Q3/fall forward buys down to match demand; exited Q1 with normalized inventories	Tightening buys; alignment improving
Macrotail/traffic	Q4: consumer/macro uncertainty embedded in outlook	Softer traffic; comps down mid-single digits; weather impacts early in quarter	Cautious demand backdrop persists
Product & assortment	Q3: promotions selectively used; margin protected	CEO focus on evolving product assortment to expand customer file	Strategic refresh under new leadership
Tariffs/supply chain	Q3: shipping lane rerouting; Q2: ~$5M tariff impact guided	Tariff cost pressure carried in forward outlook rather than Q1 specifics	Ongoing cost headwind
Leadership transition	Q4: CEO retirement plan announced; succession planning	New CEO Mary Ellen Coyne; tone confident, focused on omni-channel scaling	Transition complete; strategic re-acceleration

Management Commentary

Mary Ellen Coyne (CEO): “The fundamentals of this business are here. We have a loyal customer base, a lean operating model and strengthening omni-channel capabilities.” .
Coyne on growth plan: “I am energized by the opportunities ahead… to build upon this brand’s strong history while driving future growth… through multichannel expansion… elevating product assortments.” .
Mark Webb (CFO/COO): “Despite near term headwinds, we are fortunate to have a strong brand and a very attractive customer… our teams have managed through challenges such as this before.” .
Inventory actions: “We did take our Q3… fall and forward buys down more in line with current demand trends… We exited Q1 with normalized inventories.” .

Q&A Highlights

Inventory positioning: Management trimmed fall/holiday forward buys to align with current demand and exited Q1 with normalized inventories, supporting margin preservation .
OMS cutover: Leaders acknowledged near-term disruption from OMS implementation; stabilization underway, with operational learnings informing H2 planning .
Guidance visibility: Full-year FY2025 guidance withdrawn, with CEO committing to deeper diagnostics and strategic update by September call .
Margin durability: Strong gross margin reiterated; levers include product mix, promotions discipline, inventory alignment .

Estimates Context

Consensus EPS $0.865 vs. actual adjusted EPS $0.88; consensus revenue $156.77M vs. actual $153.62M; both based on 6 contributing estimates; revenue miss ~2.0%, EPS in line/slight beat .
With guidance withdrawn, we expect near-term estimate revisions to reflect softer comps and operational normalization; tariff cost headwinds ($~5M impact in Q3 guidance) may weigh on forward margin assumptions .

Key Takeaways for Investors

Resilient margin structure: 71.8% gross margin demonstrates pricing/inventory discipline; margin durability should anchor the medium-term thesis even amid traffic variability .
Revenue volatility likely near term: OMS cutover and softer comps suggest subdued top-line until operational stabilization and product refresh flow through; near-term estimates likely drift lower on sales .
Leadership catalyst: New CEO’s focus on omni-channel scaling, product evolution, and customer journey improvements could be a medium-term unlock; watch September call for strategic detail and KPIs .
Capital returns intact: Dividend continuity and buybacks ($3.5M repurchased in Q1; $21M remaining authorization) support TSR while growth investments continue .
Tariff/supply chain watch: Q3 outlook includes ~$5M tariff impact net of vendor offsets; investors should monitor policy shifts and vendor negotiations for relief .
Trading implication: Near-term setup leans cautious given revenue miss and guidance withdrawal; consider buying on proof-points (Q3/Q4 comps stabilization, OMS normalization, product wins) and maintain risk controls around macro-sensitive apparel retail flows .
Trend analysis advantage: QoQ margin rebound (66.3% to 71.8%) and adjusted EBITDA top-end beat suggest levers are working; if traffic improves, operating leverage could reappear in H2 .

Additional relevant press releases around Q1 FY2026:

Quarterly dividend declaration ($0.08 per share) on June 3, 2025 .
New Chief Merchandising Officer announcement on June 24, 2025 supporting product evolution agenda .

S&P Global disclaimer: Where cells are marked with *, values were retrieved from S&P Global.

J.Jill, Inc. (JILL)·Q1 2026 Earnings Summary