US' J.Jill's Q1 sales dip 4.9% as OMS transition impacts growth

US-based women's apparel retailer J.Jill, Inc has reported a 4.9 per cent year-on-year decline in net sales to $153.6 million for the first quarter ended May 3, 2025, citing a $2 million impact from its Order Management System (OMS) cutover.

Comparable sales, including both in-store and direct-to-consumer channels, fell 5.7 per cent. Direct-to-consumer sales, accounting for 46.7 per cent of total revenue, declined by 5.4 per cent. Gross profit slipped to $110.4 million, with gross margin down slightly to 71.8 per cent from 72.9 per cent a year ago, the company said in its financial statement.

Operating income dropped to $19.1 million from $28.4 million, while net income fell to $11.7 million from $16.7 million in Q1 FY24. Earnings per diluted share declined to $0.76 from $1.16. Adjusted EBITDA stood at $27.3 million, down from $35.6 million.

The company closed three stores during the quarter, ending with 249 locations. Inventory levels rose to $60.6 million, and free cash flow dropped significantly to $2.6 million from $19.2 million in the previous year. J.Jill repurchased 186,800 shares for approximately $3.5 million.

“J.Jill is a brand with a long history, an extremely loyal core customer, and so much opportunity ahead, and I am thrilled to join the team as its new CEO,” said Mary Ellen Coyne, chief executive officer and president of J.Jill, Inc. “Having spent the last three decades in women’s apparel I have a proven track record of growing businesses profitably, supported by my deep understanding of the industry and admiration for this underserved customer segment. Since joining at the beginning of May, I have been immersing myself in the business, engaging with our teams, visiting stores, and talking with associates and customers. The fundamentals of this business are solid with a lean operating model, strengthening omni-channel capabilities, and a team committed to excellence. This foundation will serve us well as we navigate a challenging macro environment while establishing our plans for the future.”

Amid macroeconomic uncertainties and a recent leadership transition, J.Jill withdrew its previously issued full-year fiscal 2025 guidance and suspended forward-looking forecasts, except for capital expenditures, expected between $20 million and $25 million, and plans to open 1 to 5 new stores.

ALCHEMPro News Desk (KD)