J.Jill Reports Q2 FY26 Sales Increase, Raises Full-Year Outlook

J.Jill, Inc. announced its financial results for the second quarter of fiscal year 2026, reporting net sales of $154.8 million. This figure represents a 0.5% increase compared to the same period in the prior year, driven by a 0.5% rise in total company comparable sales. Direct-to-consumer sales, which accounted for 47.1% of total net sales, grew by 1.9% year-over-year.

Gross profit for the quarter was $119.0 million, resulting in a gross margin of 76.8%. The company noted that this margin included a $13.3 million pre-tax benefit from net tariff refunds. Excluding this refund, the gross margin was 68.3%. Operating income for the quarter was $24.3 million, with an operating margin of 15.7%.

For the twenty-six weeks ended August 1, 2026, net sales decreased 2.7% to $299.3 million. Total company comparable sales decreased by 4.2% over this period. The company opened one store and closed two stores during the first half of the fiscal year, bringing the total store count to 255.

SG&A expenses for the quarter were $94.6 million, or 61.1% of net sales, compared to $88.6 million in the prior year. The company attributed this increase to eight net new stores, store lease renewals, marketing, shipping costs, and management incentive accruals.

Net income for the quarter was $16.8 million, or $1.11 per diluted share, compared to $10.5 million, or $0.69 per diluted share, in the prior year. The company ended the quarter with a cash balance of $76.9 million and generated $44.0 million in free cash flow.

During the quarter, the company repurchased 99,902 shares of common stock for an aggregate purchase price of $1.5 million. As of August 1, 2026, $11.8 million remained under the company's authorized share repurchase program.

Management raised its outlook for the full year of fiscal 2026. The company now expects net sales to be flat to up 2% compared to fiscal 2025 and adjusted EBITDA between $75 million and $80 million. The company also projects free cash flow of approximately $40 million and net new store growth of approximately 1 to 3 stores for the year.