JJill Inc (NYSE:JILL) stock fell 2.48% (As on June 12, 11:22:35 AM UTC-4, Source: Google Finance) after the company reported first quarter earnings that beat analyst estimates, while revenue fell short of expectations as the women’s apparel retailer navigated a challenging macroeconomic environment. Comparable sales, including stores and direct-to-consumer, decreased 5.7% in Q1. Direct-to-consumer net sales, representing 46.7% of total sales, declined 5.4% compared to last year. Gross margin contracted to 71.8% from 72.9% in the prior year quarter. Operating income fell to $19.1 million from $28.4 million a year ago. Operating income margin for the first quarter of fiscal 2025 was 12.4% compared to 17.6% in the first quarter of fiscal 2024. Adjusted Income from Operations was $21.5 million compared to $29.6 million in the first quarter of fiscal 2024. Net Income was $11.7 million compared to $16.7 million in the first quarter of fiscal 2024. Net Cash provided by Operating Activities for the thirteen weeks ended May 3, 2025, was $5.3 million compared to $21.5 million for the thirteen weeks ended May 4, 2024. Free cash flow was $2.6 million compared to $19.2 million for the thirteen weeks ended May 4, 2024. The Company ended the first quarter of fiscal 2025 with a cash balance of $31.2 million.

JILL in the first quarter of FY25 has reported the adjusted earnings per share of 88 cents, beating the analysts’ estimates for the adjusted earnings per share of 87 cents. The company had reported the adjusted revenue decline of 4.9 percent to $153.6 million in the first quarter of FY25, missing the analysts’ estimates for revenue of $158.7 million. Adjusted EBITDA for the first quarter of fiscal 2025 was $27.3 million compared to $35.6 million in the first quarter of fiscal 2024. Adjusted EBITDA margin for the first quarter of fiscal 2025 was 17.8% compared to 22.1% in the first quarter of fiscal 2024. The Company closed three stores in the first quarter of fiscal 2025. The store count at the end of the quarter is 249 stores compared to 244 stores at the end of the first quarter of fiscal 2024.

For fiscal 2025, J.Jill updated its outlook for capital expenditures to $20-$25 million and expects to open 1-5 net new stores. The company withdrew its prior full-year guidance citing increased macroeconomic uncertainty and its recent leadership transition. The company announced the hiring of a new CEO in February, with Mary Ellen Coyne taking over at the start of May following the retirement of CEO Claire Spofford.