J.Jill, Inc. announced its financial results for the first quarter of fiscal year 2025, reporting net sales of $153.6 million, a 4.9% decrease compared to $161.5 million in the prior year period. Total company comparable sales declined by 5.7%, a larger drop than anticipated. Gross profit decreased by 6.3% to $110.4 million, resulting in a gross margin of 71.8%, down from 72.9% in Q1 FY24.
Operating income for the quarter decreased to $19.1 million from $28.4 million in the prior year, and net income declined to $11.7 million from $16.7 million. Adjusted EBITDA for the quarter was $27.3 million, yielding an Adjusted EBITDA margin of 17.8%, compared to $35.6 million and a 22.1% margin in Q1 FY24. The company repurchased 186,800 shares for $3.5 million in Q1 FY25, with $21.0 million remaining under its authorized share repurchase program.
Given the increased macroeconomic uncertainty and the recent leadership transition, J.Jill is withdrawing its prior guidance for fiscal year 2025 and temporarily suspending its practice of providing forward guidance on most metrics. The company updated its expectations for total capital expenditures to $20 million-$25 million (down from $25 million) and net new store openings to 1-5 stores (down from 5-10) for FY25.
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