Results Top Expectations as Revenue Edges Ahead of Forecasts
J.Jill, Inc. (NYSE:JILL) reported fiscal first-quarter 2026 results that exceeded Wall Street estimates, although investors focused on ongoing sales declines and tariff-related pressures, sending the retailer’s shares down 6.5% in premarket trading.
Adjusted earnings per share came in at $0.45, surpassing analyst expectations of $0.42 by $0.03. Revenue totaled $144.4 million, slightly above the consensus forecast of $144.31 million.
Despite the earnings beat, sales declined 6.0% from $153.6 million in the same period last year, reflecting a challenging consumer environment.
Tariff Costs and Lower Comparable Sales Weigh on Performance
The women’s apparel retailer said first-quarter results were affected by approximately $4.7 million in additional tariff-related expenses.
Comparable sales fell 8.7% during the quarter, highlighting continued pressure on customer demand.
Management nevertheless pointed to encouraging signs that recent initiatives are beginning to gain traction.
“We delivered first quarter results in line with our expectations and are encouraged by early indicators that our strategy is gaining traction,” said Mary Ellen Coyne, President and Chief Executive Officer.
Second-Quarter Outlook Reflects Ongoing Challenges
For the second quarter, J.Jill expects revenue to decline between 1% and 3% compared with the corresponding period in fiscal 2025.
The company forecast adjusted EBITDA in a range of $18 million to $20 million.
Management also expects gross margin to contract by approximately 100 basis points during the quarter, incorporating an estimated $4 million impact from tariffs.
Full-Year Guidance Remains Intact
Despite the softer sales environment, J.Jill reaffirmed its fiscal 2026 outlook.
The company continues to expect full-year revenue to range from flat to down 2% versus fiscal 2025, while adjusted EBITDA is projected to be between $70 million and $75 million.
The forecast assumes tariff rates averaging approximately 15% during the second half of the fiscal year.
By maintaining its guidance, management signalled confidence in its ability to navigate the current operating environment despite ongoing macroeconomic and trade-related headwinds.
Store Footprint and Liquidity Remain Stable
J.Jill ended the quarter with 255 stores across its retail network and reported a cash balance of $36.3 million.
The company continues to focus on balancing inventory management, margin protection and customer engagement initiatives as it works to improve sales trends and profitability.
More about J.Jill
J.Jill, Inc. is a U.S. women’s apparel retailer offering clothing, footwear and accessories designed for women aged 40 and older. The company operates through a combination of retail stores, e-commerce and catalogue channels, focusing on premium casual apparel and lifestyle products across the United States.