J.Jill, Inc.
For the period ended May 3, 2025. Filed Jun 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 3, 2025 · Filed Jun 11, 2025
JILL$22.39-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-02; filed 2024-12-11.
0000950170-24-135426
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-05-03; filed 2025-06-11.
0000950170-25-084826
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 102 current paragraphs.
67 unchanged; 29 reworded; 6 added; 32 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Tariffs. On April 2, 2025, the U.S. government announced additional tariffs on many goods imported to the U.S. We continue to monitor international trade policy and the impact final tariff rates will have on our business, including actions we can take to mitigate them.
Current report
Selling, General and Administrative Expenses
Current report
The Company recorded $0.2 million and $0.3 million of impairment charges for the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively.
Current report
Self-Insured Group Health Insurance Reserves
Current report
In January 2025, the Company transitioned to a self-insured group health insurance program up to certain stop-loss limits. Such costs are accrued based on known claims and an estimation of incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information and actuarial estimates.
Current report
Effective March 2025, the Company revised its methodology for estimating the direct returns reserve. See Note 2 - Summary of Significant Accounting Policies for additional information.
Removed paragraphs (32)
Previous report
Represents loss on the prepayment of a portion of the term loan (the “Term Loan Credit Agreement” and, such facility, the “Term Loan Facility”).
Previous report
Represents loss on the repayment of Priming Term Loan Credit Agreement (the “Priming Credit Agreement”) and the Subordinated Term Loan Credit Agreement (the “Subordinated Credit Agreement”).
Previous report
(g)
Previous report
(h)
Previous report
Represents loss on write-off of property and equipment and inventory at one store location due to hurricane.
Previous report
(i)
Previous report
Net sales for the thirteen weeks ended November 2, 2024 increased $0.4 million, or 0.3%, to $151.3 million from $150.9 million for the thirteen weeks ended October 28, 2023. At the end of those same periods, we operated 247 and 245 retail stores, respectively. The increase in net sales was primarily due to the impact of approximately $2.0 million from the calendar shift resulting from the fifty-third week in Fiscal Year 2023, and lower merchandise returns offset by higher promotional activities and lost sales due to hurricane for the thirteen weeks ended November 2, 2024. The total company comparable sales decreased by 0.8% compared to the thirteen weeks ended October 28, 2023.
Previous report
For the thirteen weeks ended November 2, 2024, the Company recorded a loss due to hurricane of $0.3 million related to write-off of property and equipment and inventory.
Previous report
For the thirteen weeks ended November 2, 2024, the Company recorded $0.1 million of impairment charges. The Company recorded an immaterial amount of impairment charges for the thirteen weeks ended October 28, 2023.
Previous report
Thirty-nine weeks ended November 2, 2024 Compared to Thirty-nine weeks ended October 28, 2023
Previous report
Net Sales
Previous report
Retail contributed 53.4% of our net sales in the thirty-nine weeks ended November 2, 2024 and 54.7% in the thirty-nine weeks ended October 28, 2023. Our Direct channel contributed 46.6% of our net sales in the thirty-nine weeks ended November 2, 2024 and 45.3% in the thirty-nine weeks ended October 28, 2023.
Previous report
Gross profit for the thirty-nine weeks ended November 2, 2024 increased $5.8 million, or 1.8%, to $335.1 million from $329.3 million for the thirty-nine weeks ended October 28, 2023. The gross margin for the thirty-nine weeks ended November 2, 2024 was 71.6% compared to 71.9% for the thirty-nine weeks ended October 28, 2023. The increase in gross profit and gross margin for the thirty-nine weeks ended November 2, 2024 was primarily driven by an increase in net sales of 2.2%, partially offset by higher promotional activities and increased freight costs due to higher ocean freight container shipping rates compared to the thirty-nine weeks ended October 28, 2023.
Previous report
SG&A expenses for the thirty-nine weeks ended November 2, 2024 increased $10.4 million, or 4.1%, to $264.1 million from $253.7 million for the thirty-nine weeks ended October 28, 2023. The increase was primarily driven by a $2.9 million increase in compensation, benefits and management incentive expense, $2.2 million increase in marketing costs, $1.9 million increase in equity based compensation expense, $1.6 million increase in outbound shipping costs, $1.3 million increase in professional services, $1.2 million increase in information systems costs mainly due to the upgrade of our order management system, partially offset by lower depreciation and amortization of $0.8 million compared to the thirty-nine weeks ended October 28, 2023.
Previous report
For the thirty-nine weeks ended November 2, 2024, the Company recorded a loss due to hurricane of $0.3 million related to write-off of property and equipment and inventory.
Previous report
As a percentage of net sales, SG&A expenses were 56.4% for the thirty-nine weeks ended November 2, 2024 compared to 55.4% for the thirty-nine weeks ended October 28, 2023.
Previous report
Impairment of long-lived assets
Previous report
For the thirty-nine weeks ended November 2, 2024, the Company recorded noncash impairment charges of $0.4 million primarily related to leasehold improvements at certain store locations. The Company recorded an immaterial amount of impairment charges for the thirty-nine weeks ended October 28, 2023.
Previous report
Loss on Extinguishment of Debt
Previous report
For the thirty-nine weeks ended November 2, 2024, the Company recognized a loss on extinguishment of debt of $8.6 million related to the voluntary prepayment of a portion of the Term Loan Credit Agreement. No such loss was incurred by the Company during the thirty-nine weeks ended October 28, 2023.
Previous report
Loss on Debt Refinancing
Previous report
During the thirty-nine weeks ended October 28, 2023, the Company recognized a loss on debt refinancing of $12.7 million related to entering into the Term Loan Credit Agreement and the repayment of the Priming Credit Agreement and the Subordinated Credit Agreement. No such loss was incurred by the Company during the thirty-nine weeks ended November 2, 2024.
Previous report
Interest Expense
Previous report
Interest expense consists of interest expense on the Term Loan Credit Agreement for the thirty-nine weeks ended November 2, 2024, and, on the Company’s Term Loan Credit Agreement, Priming Credit Agreement prior to repayment in full on April 5, 2023, and asset-based revolving credit facility agreement (the “ABL Credit Agreement” and, such facility, the “ABL Facility”) for the thirty-nine weeks ended October 28, 2023.
Previous report
Interest Expense - Related Party
Previous report
For the thirty-nine weeks ended October 28, 2023, the Company incurred $1.1 million of Interest expense - related party associated with the Subordinated Credit Agreement, until it was repaid in full on April 5, 2023. The Company did not incur any Interest expense - related party during the thirty-nine weeks ended November 2, 2024.
Previous report
Interest Income
Previous report
For the thirty-nine weeks ended November 2, 2024, the Company earned interest on cash of $2.0 million, compared to $1.8 million for the thirty-nine weeks ended October 28, 2023.
Previous report
Income Tax Provision
Previous report
On June 14, 2024, the Company issued and sold 1,000,000 shares of its common stock. The shares were offered at an offering price of $31.00 per share, less underwriting discounts and commissions. The Company utilized the net proceeds from its sale of shares for repayment of its debt and general corporate purposes. See Note 8. Shareholders’ Equity to the condensed consolidated financial statements included in this Quarterly Report for additional information on the Company’s common stock issuance.
Previous report
During the third quarter of Fiscal Year 2024, the Company issued 3,572,664 shares of common stock following the exercise of 3,573,707 warrants (the “Warrants”) that were previously issued pursuant to a Warrant Agreement, dated as of October 2, 2020, by and between the Company and American Stock Transfer & Company LLC (the “Warrant Agreement”). The exercise price of the Warrants was net share settled as per the terms of the Warrant Agreement. Given the non-substantive exercise price of the Warrants in relation to the fair value of the common shares issued upon exercise, the exercise of these Warrants had no impact on net income per common share, both basic and diluted.
Previous report
The Company did not pay any dividends during the thirteen and thirty-nine weeks ended October 28, 2023.
Reworded paragraphs (29)
Previous wording
We operate on a 52- or 53-week fiscal year that ends on the Saturday that is closest to January 31. Each fiscal year generally is comprised of four 13-week fiscal quarters, although in the years with 53 weeks, the fourth quarter represents a 14-week period. The fiscal year ending February 1, 2025 (“Fiscal Year 2024”) is comprised of 52 weeks and fiscal year ended February 3, 2024 (“Fiscal Year 2023”) was comprised of 53 weeks.
Current wording
We operate on a 52- or 53-week fiscal year that ends on the Saturday that is closest to January 31. Each fiscal year generally is comprised of four 13-week fiscal quarters, although in the years with 53 weeks, the fourth quarter represents a 14-week period. The fiscal year ending January 31, 2026 (“Fiscal Year 2025”) and fiscal year ended February 1, 2025 (“Fiscal Year 2024”) are both comprised of 52 weeks.
Previous wording
J.Jill is a national lifestyle brand that provides apparel, footwear and accessories designed to help its customers move through a full life with ease. The brand represents an easy, thoughtful and inspired style that celebrates the totality of all women and designs its products with its core brand ethos in mind: keep it simple and make it matter. J.Jill offers a high touch customer experience through over 200 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston.
Current wording
J.Jill is a national lifestyle brand that provides apparel, footwear and accessories designed to help its customers move through a full life with ease. The brand represents an easy, thoughtful and inspired style that celebrates the totality of all women and designs its products with its core brand ethos in mind: keep it simple and make it matter. J.Jill offers a high touch customer experience through 249 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston.
Previous wording
Costs of goods sold (“COGS”) consists of the direct costs of sold merchandise, which include customs, taxes, duties, commissions and inbound shipping costs, inventory shrinkage, adjustments and reserves for excess, aged and obsolete inventory. COGS does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. We review our inventory levels on an ongoing basis to identify slow-moving merchandise and use markdowns to liquidate these products. Changes in the assortment of our products may also impact our gross profit. The timing and level of markdowns are driven by customer acceptance of our merchandise. The Company’s COGS, and consequently gross profit, may not be comparable to those of other retailers, as inclusion of certain costs vary across the industry.
Current wording
Costs of goods sold (“COGS”) consists of the direct costs of sold merchandise, which include customs, taxes, tariffs, duties, commissions and inbound shipping costs, inventory shrinkage, and adjustments and reserves for excess, aged and obsolete inventory. COGS does not include distribution center costs and allocations of indirect costs, such as occupancy, depreciation, amortization, or labor and benefits. We review our inventory levels on an ongoing basis to identify slow-moving merchandise and use markdowns to liquidate these products. Changes in the assortment of our products may also impact our gross profit. The timing and level of markdowns are driven by customer acceptance of our merchandise. The Company’s COGS, and consequently gross profit, may not be comparable to those of other retailers, as inclusion of certain costs vary across the industry.
Previous wording
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA Margin. Adjusted EBITDA represents net income plus depreciation and amortization, income tax provision, interest expense, interest expense - related party, interest income, equity-based compensation expense, write-off of property and equipment, amortization of cloud-based software implementation costs, loss on extinguishment of debt, loss on debt refinancing, adjustment for exited retail stores, impairment of long-lived assets, loss due to hurricane, and other non-recurring items primarily consisting of outside legal and professional fees associated with certain non-recurring transactions and events. We present Adjusted EBITDA on a consolidated basis because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance of our business and for evaluating on a quarterly and annual basis actual results against such expectations. Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and as such, use it internally to report results. Adjusted EBITDA margin represents, for any period, Adjusted EBITDA as a percentage of net sales.
Current wording
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA Margin. Adjusted EBITDA represents net income plus (less) depreciation and amortization, income tax provision, interest expense, interest income, equity-based compensation expense, write-off of property and equipment, amortization of cloud-based software implementation costs, adjustment for exited retail stores, impairment of long-lived assets, and other non-recurring items, primarily consisting of non-ordinary course professional fees, non-employee share-based payments, and legal settlements and fees associated with certain non-recurring transactions and events. We present Adjusted EBITDA on a consolidated basis because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance of our business and for evaluating on a quarterly and annual basis actual results against such expectations. Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and as such, use it internally to report results. Adjusted EBITDA margin represents, for any period, Adjusted EBITDA as a percentage of net sales.
Previous wording
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within Selling, general and administrative expenses. Adjusted EBITDA for the thirteen and thirty-nine weeks ended October 28, 2023 has been restated to include such adjustments to Net income.
Current wording
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within Selling, general and administrative expenses.
Previous wording
Represents items management believes are not indicative of ongoing operating performance, including non-ordinary course legal and professional fees.
Current wording
Represents items management believes are not indicative of ongoing operating performance, including non-ordinary course professional fees, non-employee share-based payments, and legal settlements and fees.
Previous wording
Net sales for the thirty-nine weeks ended November 2, 2024 increased $10.3 million, or 2.2%, to $468.0 million from $457.8 million for the thirty-nine weeks ended October 28, 2023. At the end of those same periods, we operated 247 and 245 retail stores, respectively. The increase in net sales was primarily due to total company comparable sales increase of 1.4% and the impact of approximately $2.0 million from the calendar shift compared to the thirty-nine weeks ended October 28, 2023.
Current wording
Net sales for the thirteen weeks ended May 3, 2025 decreased $7.9 million, or 4.9%, to $153.6 million from $161.5 million for the thirteen weeks ended May 4, 2024. At the end of those same periods, we operated 249 and 244 retail stores, respectively. The decrease in net sales was primarily due to a decrease in total company comparable sales of 5.7%, the decrease was primarily driven by a decline in full price mix and an increase in promotional activities compared to the thirteen weeks ended May 4, 2024.
Previous wording
Retail contributed 54.3% of our net sales in the thirteen weeks ended November 2, 2024 and 54.4% in the thirteen weeks ended October 28, 2023. Our Direct channel contributed 45.7% of our net sales in the thirteen weeks ended November 2, 2024 and 45.6% in the thirteen weeks ended October 28, 2023.
Current wording
Retail contributed 53.3% of our net sales in the thirteen weeks ended May 3, 2025 and 53.0% in the thirteen weeks ended May 4, 2024. Our Direct channel contributed 46.7% of our net sales in the thirteen weeks ended May 3, 2025 and 47.0% in the thirteen weeks ended May 4, 2024.
Previous wording
Gross profit for the thirteen weeks ended November 2, 2024 decreased $0.6 million, or 0.6%, to $108.0 million from $108.6 million for the thirteen weeks ended October 28, 2023. The gross margin for the thirteen weeks ended November 2, 2024 was 71.4% compared to 72.0% for the thirteen weeks ended October 28, 2023. The decrease in gross profit and gross margin for the thirteen weeks ended November 2, 2024 was primarily driven by an increase in promotional activities and increased freight costs due to higher ocean freight container shipping rates compared to the thirteen weeks ended October 28, 2023.
Current wording
Gross profit for the thirteen weeks ended May 3, 2025 decreased $7.4 million, or 6.3%, to $110.4 million from $117.7 million for the thirteen weeks ended May 4, 2024. The gross margin for the thirteen weeks ended May 3, 2025 was 71.8% compared to 72.9% for the thirteen weeks ended May 4, 2024. The decrease in gross profit and gross margin for the thirteen weeks ended May 3, 2025 was primarily driven by a decline in full price mix and an increase in promotional activities compared to the thirteen weeks ended May 4, 2024.
Previous wording
SG&A expenses for the thirteen weeks ended November 2, 2024 increased $2.2 million, or 2.5%, to $88.6 million from $86.5 million for the thirteen weeks ended October 28, 2023. The increase was primarily driven by $1.4 million increase in compensation and related expenses, $0.7 million increase in outbound shipping costs, $0.4 million increase in marketing expenses, and $0.4 million of order management system implementation expenses, offset by a decrease in management incentive of $0.7 million.
Current wording
SG&A expenses for the thirteen weeks ended May 3, 2025 increased $2.0 million, or 2.2%, to $91.1 million from $89.1 million for the thirteen weeks ended May 4, 2024. The increase was primarily driven by a $2.3 million increase in professional services, $1.1 million increase in information systems costs, primarily related to the recent system implementation projects, and $0.9 million due to an increase in lease costs as a result of new store openings, offset by a decrease of $1.5 million in compensation and related expenses, $0.5 million of depreciation and amortization expense, and $0.3 million in shipping costs.
Previous wording
As a percentage of net sales, SG&A expenses were 58.6% for the thirteen weeks ended November 2, 2024 and 57.3% for the thirteen weeks ended October 28, 2023.
Current wording
As a percentage of net sales, SG&A expenses were 59.3% for the thirteen weeks ended May 3, 2025 and 55.2% for the thirteen weeks ended May 4, 2024.
Previous wording
Interest expense was $2.8 million and $6.5 million for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively. The decrease was due to a lower debt balance for the thirteen weeks ended November 2, 2024.
Current wording
Interest expense was $2.8 million and $6.4 million for the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively. The decrease was due to a lower debt balance for the thirteen weeks ended May 3, 2025.
Previous wording
For the thirteen weeks ended November 2, 2024, the Company earned interest on cash of $0.5 million, compared to $0.7 million for the thirteen weeks ended October 28, 2023.
Current wording
For the thirteen weeks ended May 3, 2025, the Company earned interest on cash of $0.4 million, compared to $1.0 million for the thirteen weeks ended May 4, 2024. The decrease was due primarily to lower cash balances for the thirteen weeks ended May 3, 2025.
Previous wording
The income tax provision was $4.5 million for the thirteen weeks ended November 2, 2024 compared to $4.7 million for the thirteen weeks ended October 28, 2023, while our effective tax rates for the same periods were 26.8% and 28.9%, respectively. The effective tax rate during the thirteen weeks ended November 2, 2024 is lower primarily due to the impact of state and local income taxes and executive compensation limitations.
Current wording
The income tax provision was $5.0 million for the thirteen weeks ended May 3, 2025 compared to $6.2 million for the thirteen weeks ended May 4, 2024, while our effective tax rates for the same periods were 29.8% and 27.2%, respectively. The effective tax rate during the thirteen weeks ended May 3, 2025 is lower primarily due to the impact of state and local income taxes and executive compensation limitations.
Previous wording
Our primary sources of liquidity and capital resources are cash and cash equivalents generated from operating activities and availability under our ABL Facility, so long as certain conditions related to the maturity of the Term Loan Credit Agreement are met. As of November 2, 2024, we had $38.8 million in cash and $35.7 million of total availability under our ABL Facility. In addition, through our shelf registration statement on file with the SEC or through private transactions, and depending on conditions prevailing in the public and private capital markets, we may from time to time issue equity securities in one or more series in one or more offerings.
Current wording
Our primary sources of liquidity and capital resources are cash and cash equivalents generated from operating activities and availability under our ABL Facility, so long as certain conditions related to the maturity of the Term Loan Credit Agreement are met. As of May 3, 2025, we had $31.2 million in cash and $35.7 million of total availability under our ABL Facility. In addition, through our shelf registration statement on file with the SEC or through private transactions, and depending on conditions prevailing in the public and private capital markets, we may from time to time issue equity securities in one or more series in one or more offerings.
Previous wording
Subsequent to November 2, 2024, on December 6, 2024, the Board approved a share repurchase program (the “Share Repurchase Program”), under which the Company is authorized to repurchase up to $25.0 million of the Company’s common stock, over the next two years. Under the Share Repurchase Program, shares of the Company’s common stock may be purchased from time to time through open market or private transactions, block trades, or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations under the Exchange Act. The timing and the number of shares repurchased are subject to the discretion of the Company and may be affected by market conditions and other factors. The Share Repurchase Program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time.
Current wording
On December 6, 2024, the Board approved a share repurchase program (the “Share Repurchase Program”), under which the Company is authorized to repurchase up to $25.0 million of the Company’s common stock for two years following the authorization date. Under the Share Repurchase Program, shares of the Company’s common stock may be purchased from time to time through open market or private transactions, block trades, or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations under the Exchange Act. The timing and the number of shares repurchased are subject to the discretion of the Company and may be affected by market conditions and other factors. The Share Repurchase Program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time.
Previous wording
On May 10, 2024, the Company made a voluntary principal prepayment of $58.2 million on the Term Loan Credit Agreement, in lieu of the previously expected excess cash flow payment of $26.6 million. The expected excess cash flow payment was rejected by the lenders as permitted under the provisions of the Term Loan Credit Agreement. On June 21, 2024, the Company made an additional voluntary principal prepayment of $27.2 million (See Note 8. Shareholders’ Equity, Common Stock Issuance, for additional information). Together with the required quarterly payments, the Company has repaid $92.0 million in principal under the Term Loan Credit Agreement in Fiscal Year 2024. In connection with the voluntary principal prepayments, the Company paid a $2.6 million premium, amounting to 3% on the aggregate principal amount being prepaid, and $1.6 million towards interest, in accordance with the provisions of the Term Loan Credit Agreement.
Current wording
On May 10, 2024 and June 21, 2024, the Company made voluntary principal prepayments of $58.2 million and $27.2 million on the Term Loan Credit Agreement, respectively (see Note 8 - Shareholders’ Equity, Common Stock Issuance, for additional information). Together with the required quarterly payments, the Company has repaid $94.2 million in principal under the Term Loan Credit Agreement in Fiscal Year 2024. In connection with the voluntary principal prepayments, the Company paid a $2.6 million premium, amounting to 3% on the aggregate principal amount being prepaid, and $1.6 million towards interest, in accordance with the provisions of the Term Loan Credit Agreement. The Company recognized a loss on extinguishment of debt of approximately $8.6 million, consisting of $6.0 million of accelerated amortization of the discount and fees and $2.6 million of prepayment premium, in its condensed consolidated statements of operations and comprehensive income.
Previous wording
In connection with the voluntary principal prepayments discussed above, for the thirty-nine weeks ended November 2, 2024, the Company recognized a loss on extinguishment of debt of approximately $8.6 million, consisting of $6.0 million of accelerated amortization of the discount and fees and $2.6 million of prepayment premium, in its condensed consolidated statements of operations and comprehensive income. As of November 2, 2024, the remaining Term Loan Facility principal balance was $76.5 million, which is to be repaid in one quarterly principal payment of $2.2 million prior to January 31, 2025, with the remaining balance of $74.3 million to be paid upon maturity on May 8, 2028. The remaining unamortized discount and fees of $5.2 million will continue to be amortized over the remaining term through maturity. See Note 5. Debt to the condensed consolidated financial statements included in this Quarterly Report for additional information.
Current wording
As of May 3, 2025, the remaining Term Loan Facility principal balance was $74.3 million, which is to be repaid upon maturity on May 8, 2028. The remaining unamortized discount and fees of $4.6 million will continue to be amortized over the remaining term through maturity. See Note 5 - Debt to the condensed consolidated financial statements included in this Quarterly Report for additional information.
Previous wording
There were no short-term borrowings outstanding under the Company’s ABL Facility as of November 2, 2024 and February 3, 2024. At November 2, 2024 and February 3, 2024, the Company had outstanding letters of credit in the amount of $4.3 million and $5.8 million, respectively, and had a maximum additional borrowing capacity of $35.7 million and $34.2 million, respectively.
Current wording
There were no short-term borrowings outstanding under the Company’s ABL Facility as of May 3, 2025 and February 1, 2025. At May 3, 2025 and February 1, 2025, the Company had outstanding letters of credit in the amount of $4.3 million and $4.3 million, respectively, and had a maximum additional borrowing capacity of $35.7 million.
Previous wording
Net cash provided by operating activities increased by $0.3 million during the thirty-nine weeks ended November 2, 2024 compared to the thirty-nine weeks ended October 28, 2023. The increase during the thirty-nine weeks ended November 2, 2024 was driven by higher net income of $5.8 million, and a higher change in operating assets and liabilities of $0.4 million offset by lower adjustments to reconcile net income to net cash from operations of $5.9 million. The higher change in operating assets and liabilities was driven primarily by changes in accrued expenses and other current liabilities of $8.2 million, mainly consisting of management incentives of $3.1 million, and the timing of payments relating to income taxes of $2.2 million, interest on debt and corporate expenses of $2.1 million, payroll of $1.9 million, and other net expenses, partially offset by lower sales returns reserve of $1.2 million. The higher change in operating assets and liabilities was partially offset by timing of payments relating to other noncurrent assets and liabilities of $2.7 million, inventory of $2.5 million, and accounts receivable of $2.3 million.
Current wording
Net cash provided by operating activities decreased by $16.1 million during the thirteen weeks ended May 3, 2025 compared to the thirteen weeks ended May 4, 2024. The decrease during the thirteen weeks ended May 3, 2025 was driven by a decrease in net income of $5.0 million, adjustments to reconcile net income of $1.7 million and changes in operating assets and liabilities of $9.5 million. The change in operating assets and liabilities was driven primarily by decreases in accounts payable of $8.3 million primarily due to merchandise payables, accrued expenses and other current liabilities of $3.0 million, mainly consisting of shipping expenses of $1.0 million, professional fees of $0.9 million, and payments relating to other expense accruals of $1.0 million and prepaid expenses and other current assets of $0.8 million. The change in operating assets and liabilities was partially offset by increases in accounts receivable of $1.5 million, timing of payments relating to other noncurrent assets of $0.8 million and inventory of $0.6 million.
Previous wording
Net cash provided by operating activities during the thirty-nine weeks ended November 2, 2024 was $56.9 million. Key elements of cash provided by operating activities were (i) net income of $37.2 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $29.2 million, primarily driven by depreciation and amortization, loss on extinguishment of debt and equity-based compensation, and (iii) uses of cash totaling $9.5 million for net operating assets and liabilities.
Current wording
Net cash provided by operating activities during the thirteen weeks ended May 3, 2025 was $5.3 million. Key elements of cash provided by operating activities were (i) net income of $11.7 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $5.9 million, primarily driven by depreciation and amortization, and equity-based compensation, and (iii) uses of cash totaling $12.3 million for net operating assets and liabilities.
Previous wording
Net cash provided by operating activities during the thirty-nine weeks ended October 28, 2023 was $56.7 million. Key elements of cash provided by operating activities were (i) net income of $31.4 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $35.2 million, primarily driven by loss on debt refinancing and depreciation and amortization, and (iii) uses of cash totaling $9.9 million for net operating assets and liabilities.
Current wording
Net cash provided by operating activities during the thirteen weeks ended May 4, 2024 was $21.5 million. Key elements of cash provided by operating activities were (i) net income of $16.7 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $7.6 million, primarily driven by depreciation and amortization, and equity-based compensation, and (iii) uses of cash totaling $2.8 million for net operating assets and liabilities.
Previous wording
Net cash used in investing activities during the thirty-nine weeks ended November 2, 2024 and October 28, 2023 was $10.0 million and $10.8 million, respectively, representing purchases of property and equipment related investments in stores and software and technology related investments.
Current wording
Net cash used in investing activities during the thirteen weeks ended May 3, 2025 and the thirteen weeks ended May 4, 2024 was $2.7 million and $2.3 million, respectively, representing purchases of property and equipment related investments in stores and software and technology related investments.
Previous wording
Net cash used in financing activities was $70.3 million for the thirty-nine weeks ended November 2, 2024 compared to $68.9 million for the thirty-nine weeks ended October 28, 2023. Net cash used in financing activities for the thirty-nine weeks ended November 2, 2024 primarily consisted of voluntary prepayments under the Term Loan Credit Agreement partially offset by the proceeds from the issuance of common stock. Net cash used in financing activities for the thirty-nine weeks ended October 28, 2023 consisted of repayment of the previously existing Priming and Subordinated Credit Agreements offset by the proceeds from the issuance of the Term Loan Credit Agreement.
Current wording
Net cash used in financing activities was $6.8 million for the thirteen weeks ended May 3, 2025 compared to $4.2 million for the thirteen weeks ended May 4, 2024. Net cash used in financing activities for the thirteen weeks ended May 3, 2025 consisted primarily of share repurchase costs, net of commission and fees, surrender of shares to pay withholding taxes, and quarterly cash dividend paid to shareholders. Net cash used in financing activities for the thirteen weeks ended May 4, 2024 consisted of repayment of the previously existing Priming and Subordinated Credit Agreements and surrender of shares to pay withholding taxes.
Previous wording
During the thirteen weeks ended November 2, 2024, the Board of Directors (the “Board”) declared a quarterly cash dividend payment of $0.07 per share of common stock (the “Dividend”). The Dividend was payable on October 2, 2024 to stockholders of record of issued and outstanding shares of the Company’s common stock as of September 18, 2024. During the thirteen and thirty-nine weeks ended November 2, 2024, the Company paid $1.0 million and $1.8 million, respectively, in dividends. While dividends are generally recorded as a reduction to Retained earnings, since the Company has an accumulated deficit, dividends are recorded as a reduction to Additional paid-in capital.
Current wording
During the thirteen weeks ended May 3, 2025, the Board declared a quarterly cash dividend payment of $0.08 per share of common stock (the “Dividend”). The Dividend was payable on April 16, 2025 to stockholders of record of issued and outstanding shares of the Company’s common stock as of April 2, 2025. During the thirteen weeks ended May 3, 2025, the Company paid $1.2 million in dividends. While dividends are generally recorded as a reduction to Retained earnings, since the Company has an accumulated deficit, dividends are recorded as a reduction to Additional paid-in capital.
Previous wording
Subsequent to November 2, 2024, on December 4, 2024, the Board declared a cash dividend of $0.07 per share, payable on January 9, 2025 to stockholders of record of issued and outstanding shares of the Company’s common stock as of December 26, 2024.
Current wording
Subsequent to May 3, 2025, on June 3, 2025, the Board declared a quarterly cash dividend of $0.08 per share, payable on July 9, 2025 to stockholders of record of issued and outstanding shares of the Company’s common stock as of June 25, 2025.
Previous wording
The Company’s contractual obligations consist primarily of debt obligations, interest payments, operating leases and purchase orders for merchandise inventory. These contractual obligations impact the Company’s short-term and long-term liquidity and capital resource needs.
Current wording
The Company’s contractual obligations consist primarily of debt obligations, interest payments, operating leases, purchase orders for merchandise inventory, and cloud computing related agreements. These contractual obligations impact the Company’s short-term and long-term liquidity and capital resource needs.
Previous wording
The most significant accounting estimates involve a high degree of judgment or complexity. Management believes the estimates and judgments most critical to the preparation of our condensed consolidated financial statements and to the understanding of our reported financial results include those made in connection with revenue recognition, including accounting for gift card breakage and estimated merchandise returns; estimating the value of inventory; impairment assessments for goodwill and other indefinite-lived intangible assets, and long-lived assets. Management evaluates its policies and assumptions on an ongoing basis.
Current wording
The most significant accounting estimates involve a high degree of judgment or complexity. Management believes the estimates and judgments most critical to the preparation of our consolidated financial statements and to the understanding of our reported financial results include those made in connection with revenue recognition, including accounting for outstanding gift cards that will ultimately not be redeemed (“gift card breakage”) and estimated merchandise returns; estimating the value of inventory; impairment assessments for goodwill and other indefinite-lived intangible assets, and long-lived assets; estimating of IBNR claims. Management evaluates its policies and assumptions on an ongoing basis.
Previous wording
These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. All written and oral forward-looking statements made in connection with this Quarterly Report that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Risk Factors set forth in our 2023 Annual Report, our Quarterly Report on Form 10-Q for the quarter ended August 28, 2024 (the “Second Quarter Form 10-Q”) and other cautionary statements included therein and herein.
Current wording
These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. All written and oral forward-looking statements made in connection with this Quarterly Report that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Risk Factors set forth in our 2024 Annual Report and other cautionary statements included therein and herein.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
The following table summarizes our condensed consolidated results of operations for the periods indicated:
Previous report — wording carried elsewhere
Gross Profit and Costs of Goods Sold
Previous report — wording carried elsewhere
Interest expense was $13.0 million and $18.8 million for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively. The decrease was primarily due to a lower debt balance for the thirty-nine weeks ended November 2, 2024.
Previous report — wording carried elsewhere
The income tax provision was $13.8 million for the thirty-nine weeks ended November 2, 2024 compared to $13.3 million for the thirty-nine weeks ended October 28, 2023, while our effective tax rates for the same periods were 27.1% and 29.8%, respectively. The effective tax rate during the thirty-nine weeks ended November 2, 2024 is lower primarily due to the impact of state and local income taxes and executive compensation limitations.