J.Jill, Inc.
For the period ended Aug 2, 2025. Filed Sep 3, 2025.
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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.
Aug 2, 2025 · Filed Sep 3, 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 2025-05-03; filed 2025-06-11.
0000950170-25-084826
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-02; filed 2025-09-03.
0001193125-25-194952
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 102 previous paragraphs and 124 current paragraphs.
74 unchanged; 26 reworded; 19 added; 2 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 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 (19)
Current report
Tariffs. The United States has recently enacted significant changes to its trade policy and imposed substantial tariffs on imported goods from a number of countries. Changes in U.S. trade policy and uncertainty surrounding tariff rates have contributed to overall macroeconomic volatility, and the eventual outcome of the trade policy may increase the cost of our merchandise and therefore negatively impact our gross margins in future quarters. If elevated tariff levels persist, we may see pressure on our level of profitability.
Current 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”).
Current report
(g)
Current report
Loss on Extinguishment of Debt
Current report
For the thirteen weeks ended August 3, 2024, the Company recognized a loss on debt extinguishment 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 thirteen weeks ended August 2, 2025.
Current report
Twenty-Six weeks ended August 2, 2025 Compared to Twenty-Six weeks ended August 3, 2024
Current report
Net Sales
Current report
Retail contributed 53.4% of our net sales in the twenty-six weeks ended August 2, 2025 and 53.0% in the twenty-six weeks ended August 3, 2024. Our Direct channel contributed 46.6% of our net sales in the twenty-six weeks ended August 2, 2025 and 47.0% in the twenty-six weeks ended August 3, 2024.
Current report
Gross profit for the twenty-six weeks ended August 2, 2025 decreased $11.4 million, or 5.0%, to $215.7 million from $227.1 million for the twenty-six weeks ended August 3, 2024. The gross margin for the twenty-six weeks ended August 2, 2025 was 70.1% compared to 71.7% for the twenty-six weeks ended August 3, 2024. The decrease in gross profit and gross margin for the twenty-six weeks ended August 2, 2025 was primarily driven by a higher mix of markdown sales, higher full-price promotional rates, and increased tariffs compared to the twenty-six weeks ended August 3, 2024.
Current report
SG&A expenses for the twenty-six weeks ended August 2, 2025 increased $4.2 million, or 2.4%, to $179.7 million from $175.4 million for the twenty-six weeks ended August 3, 2024. The increase was primarily driven by a $3.3 million increase in consulting and CEO transition costs, $1.8 million increase in occupancy costs, $1.6 million increase in information systems costs, primarily related to amortization of cloud-based software implementation costs, $0.7 million increase in outbound shipping costs, and $0.3 million increase in marketing expense, partially offset by $3.5 million decrease in compensation, benefits and management incentive expense, compared to the twenty-six weeks ended August 3, 2024.
Current report
As a percentage of net sales, SG&A expenses were 58.4% for the twenty-six weeks ended August 2, 2025 compared to 55.4% for the twenty-six weeks ended August 3, 2024.
Current report
Impairment of long-lived assets
Current report
For the twenty-six weeks ended August 2, 2025 and August 3, 2024, the Company recorded noncash impairment charges of $0.2 million and 0.3 million primarily related to leasehold improvements at certain store locations.
Current report
Loss on Extinguishment of Debt
Current report
For the twenty-six weeks ended August 3, 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 twenty-six weeks ended August 2, 2025.
Current report
Interest Expense
Current report
Interest expense was $5.5 million and $10.2 million for the twenty-six weeks ended August 2, 2025 and August 3, 2024, respectively. The decrease was primarily due to a lower debt balance for the twenty-six weeks ended August 2, 2025.
Current report
Interest Income
Current report
Income Tax Provision
Removed paragraphs (2)
Previous 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.
Previous report
Selling, General and Administrative Expenses
Reworded paragraphs (26)
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 249 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 247 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston.
Previous wording
Net sales consist primarily of revenues, net of merchandise returns and discounts, generated from the sale of apparel and accessory merchandise through our retail stores (“Retail”) and through our website and catalog orders (“Direct”). Net sales also include shipping and handling fees collected from customers, royalty revenues and marketing reimbursements related to our private label credit card agreement. Retail revenue is recognized at the time of sale and Direct revenue is recognized upon shipment of merchandise to the customer.
Current wording
Net sales consist primarily of revenues, net of merchandise returns and discounts, generated from the sale of apparel and accessory merchandise through our retail stores (“Retail”) and through our website and catalog orders (“Direct”). Net sales also include shipping and handling fees collected from customers, royalty revenues and marketing reimbursements related to our private label credit card agreement. Retail revenue is recognized at the time of sale or upon shipment if the sale is not immediately fulfilled, and Direct revenue is recognized upon shipment of merchandise to the customer.
Previous wording
Total company comparable sales include net sales from our retail stores that have been open for more than 52 weeks and from our Direct channel. This measure highlights the performance of existing stores open during the period, while excluding the impact of new store openings and closures. When a store in the total company comparable store base is temporarily closed for four or more days within a fiscal week, the store is excluded from the comparable store base; if it is temporarily closed for three or fewer days within a fiscal week, the store is included within the comparable store base. Certain of our competitors and other retailers may calculate total company comparable sales differently than we do. Our comparable sales are based on a 52-week period. The total company comparable sales calculation shifts the weeks in the fiscal year containing the fifty-third week to align like-for-like. As a result, the reporting of our total company comparable sales may not be comparable to sales data made available by other companies.
Current wording
Total company comparable sales include sales net of returns from our retail stores that have been open for more than 52 weeks and from our Direct channel. This measure highlights the performance of existing stores open during the period, while excluding the impact of new store openings and closures. When a store in the total company comparable store base is temporarily closed for four or more days within a fiscal week, the store is excluded from the comparable store base; if it is temporarily closed for three or fewer days within a fiscal week, the store is included within the comparable store base. Certain of our competitors and other retailers may calculate total company comparable sales differently than we do. Our comparable sales are based on a 52-week period. The total company comparable sales calculation shifts the weeks in the fiscal year containing the fifty-third week to align like-for-like. As a result, the reporting of our total company comparable sales may not be comparable to sales data made available by other companies.
Previous 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.
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, loss on extinguishment of debt, and other non-recurring items, primarily consisting of non-ordinary course professional fees, non-employee share-based payments, CEO transition costs, 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 non-cash gains associated with exiting store leases earlier than anticipated.
Current wording
Represents noncash gains associated with exiting store leases earlier than anticipated.
Previous 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.
Current wording
Represents items management believes are not indicative of ongoing operating performance, including CEO transition costs, non-ordinary course legal and professional fees, non-employee share-based payments, and legal settlements and fees.
Previous 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.
Current wording
Net sales for the thirteen weeks ended August 2, 2025 decreased $1.3 million, or 0.8%, to $154.0 million from $155.2 million for the thirteen weeks ended August 3, 2024. At the end of those same periods, we operated 247 and 244 retail stores, respectively. The decrease in net sales was primarily due to a decrease in total company comparable sales of 1.0% compared to the thirteen weeks ended August 3, 2024. The decrease was primarily driven by a decline in full price mix and an increase in promotional activities compared to the thirteen weeks ended August 3, 2024.
Previous 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.
Current wording
Retail contributed 53.6% of our net sales in the thirteen weeks ended August 2, 2025 and 52.9% in the thirteen weeks ended August 3, 2024. Our Direct channel contributed 46.4% of our net sales in the thirteen weeks ended August 2, 2025 and 47.1% in the thirteen weeks ended August 3, 2024.
Previous 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.
Current wording
Gross profit for the thirteen weeks ended August 2, 2025 decreased $4.0 million, or 3.7%, to $105.4 million from $109.4 million for the thirteen weeks ended August 3, 2024. The gross margin for the thirteen weeks ended August 2, 2025 was 68.4% compared to 70.5% for the thirteen weeks ended August 3, 2024. The decrease in gross profit and gross margin for the thirteen weeks ended August 2, 2025 was primarily driven by a higher mix of markdown sales, higher full-price promotional rates, and increased tariffs compared to the thirteen weeks ended August 3, 2024.
Previous 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.
Current wording
SG&A expenses for the thirteen weeks ended August 2, 2025 increased $2.3 million, or 2.6%, to $88.6 million from $86.3 million for the thirteen weeks ended August 3, 2024. The increase was primarily driven by a $1.1 million increase in outbound shipping costs, $1.0 million related to the CEO transition, $0.9 million in increased occupancy costs, $0.5 million increase in information systems costs, primarily related to amortization of cloud-based software implementation costs, $0.4 million increase in marketing expense, and an increase of $0.3 million in depreciation and amortization expense, partially offset by a decrease of $1.9 million in compensation, benefits and management incentive expense.
Previous 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.
Current wording
As a percentage of net sales, SG&A expenses were 57.5% for the thirteen weeks ended August 2, 2025 and 55.6% for the thirteen weeks ended August 3, 2024.
Previous wording
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 wording
For the thirteen weeks ended August 2, 2025 and August 3, 2025 the Company recorded an immaterial amount of impairment charges.
Previous 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.
Current wording
Interest expense was $2.7 million and $3.7 million for the thirteen weeks ended August 2, 2025 and August 3, 2024, respectively. The decrease was due to a lower debt balance for the thirteen weeks ended August 2, 2025.
Previous 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.
Current wording
The Company’s income tax provision was $4.0 million for the thirteen weeks ended August 2, 2025 compared to $3.1 million for the thirteen weeks ended August 3, 2024, while our effective tax rates for the same periods were 27.7% and 27.3%, respectively. The effective tax rate during the thirteen weeks ended August 2, 2025 is higher primarily due to the impact of state and local income taxes and executive compensation limitations.
Previous 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.
Current wording
For the twenty-six weeks ended August 2, 2025, the Company earned interest on cash of $0.9 million, compared to $1.5 million for the twenty-six weeks ended August 3, 2024. The decrease in earned interest is primarily due to lower cash balances and a change in interest rates in the comparable period.
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 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.
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 August 2, 2025, we had $45.5 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
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.
Current wording
On May 10, 2024 and June 21, 2024, the Company made voluntary 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
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.
Current wording
As of August 2, 2025, the remaining Term Loan Facility principal balance was $74.3 million, which is to be repaid upon maturity on May 8, 2028. As a result of the voluntary principal prepayments described above, there will be no quarterly payments required until the remaining balance is paid in full on the maturity date. The remaining unamortized discount and fees of $4.3 million will continue to be amortized over the remaining term through maturity. See Note 5 - Debtto 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 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.
Current wording
There were no short-term borrowings outstanding under the Company’s ABL Facility as of August 2, 2025 and February 1, 2025. At August 2, 2025 and February 1, 2025, the Company had outstanding letters of credit in the amount of $4.3 million and had a maximum additional borrowing capacity of $35.7 million.
Previous 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.
Current wording
Net cash provided by operating activities decreased by $13.2 million during the twenty-six weeks ended August 2, 2025 compared to the twenty-six weeks ended August 3, 2024. The decrease during the twenty-six weeks ended August 2, 2025 was driven by decrease in net income of $2.7 million, adjustments to reconcile net income of $4.9 million and a change in operating assets and liabilities of $5.6 million. The change in operating assets and liabilities was driven primarily by a decrease in accounts payable of $8.1 million, due mainly to merchandise payables, decrease in accrued expenses and other current liabilities of $2.9 million, a decrease in accounts receivable of $1.4 million due to timing of collection of credit card receivables, and a decrease in prepaid expenses and other current assets of $1.0 million. These decreases were partially offset by an increase in inventory of $5.5 million, relating to the purchase of product, timing of payments relating to other noncurrent assets of $1.7 million, and increases in operating leases assets and liabilities of $0.7 million.
Previous 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.
Current wording
Net cash provided by operating activities during the twenty-six weeks ended August 2, 2025 was $24.7 million. Key elements of cash provided by operating activities were (i) net income of $22.2 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $16.7 million, primarily driven by depreciation and amortization, changes in deferred taxes, and equity-based compensation, and (iii) uses of cash totaling $14.2 million for net operating assets and liabilities.
Previous 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.
Current wording
Net cash provided by operating activities during the twenty-six weeks ended August 3, 2024 was $37.9 million. Key elements of cash provided by operating activities were (i) net income of $24.9 million, (ii) adjustments to reconcile net income to net cash provided by operating activities of $21.7 million, primarily driven by depreciation and amortization, loss on extinguishment of debt, equity-based compensation, and (iii) uses of cash totaling $8.7 million for net operating assets and liabilities.
Previous 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.
Current wording
Net cash used in investing activities during the twenty-six weeks ended August 2, 2025 and August 3, 2024 was $5.5 million and $4.6 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 $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.
Current wording
Net cash used in financing activities was $9.1 million for the twenty-six weeks ended August 2, 2025 compared to $67.0 million for the twenty-six weeks ended August 3, 2024. Net cash used in financing activities for the twenty-six weeks ended August 2, 2025 primarily consisted 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 twenty-six weeks ended August 3, 2024 primarily consisted of voluntary prepayments under the Term Loan Credit Agreement partially offset by the proceeds from the issuance of common stock.
Previous 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.
Current wording
During the thirteen weeks ended August 2, 2025, the Board declared a quarterly cash dividend payment of $0.08 per share of common stock (the “Dividend”). The Dividend was 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. During the thirteen and twenty-six weeks ended August 2, 2025, the Company paid $1.2 million and $2.4 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 on the condensed consolidated balance sheets.
Previous 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.
Current wording
The Company’s contractual obligations consist primarily of debt obligations, interest payments, operating leases, and 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.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
For the thirteen weeks ended August 2, 2025 and August 3, 2024, the Company earned interest on cash of $0.5 million.
Current report — wording carried from elsewhere
The following table summarizes our condensed consolidated results of operations for the periods indicated:
Current report — wording carried from elsewhere
Net sales for the twenty-six weeks ended August 2, 2025 decreased $9.1 million, or 2.9%, to $307.6 million from $316.8 million for the twenty-six weeks ended August 3, 2024. At the end of those same periods, we operated 247 and 244 retail stores, respectively. The decrease in net sales was primarily due to total company comparable sales decrease of 3.5%. The decrease was primarily driven by a decline in full price mix and an increase in promotional activities compared to the thirteen weeks ended August 3, 2024.
Current report — wording carried from elsewhere
Gross Profit and Costs of Goods Sold
Current report — wording carried from elsewhere
The Company’s income tax provision was $9.0 million for the twenty-six weeks ended August 2, 2025 compared to $9.3 million for the twenty-six weeks ended August 3, 2024, while our effective tax rates for the same periods were 28.8% and 27.2%, respectively. The effective tax rate during the twenty-six weeks ended August 2, 2025 is higher primarily due to the impact of state and local income taxes and executive compensation limitations.