J.Jill, Inc.
For the period ended May 2, 2026. Filed Jun 10, 2026.
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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.
May 2, 2026 · Filed Jun 10, 2026
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 2025-11-01; filed 2025-12-10.
0001193125-25-314318
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-05-02; filed 2026-06-10.
0001193125-26-265857
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 126 previous paragraphs and 107 current paragraphs.
72 unchanged; 24 reworded; 11 added; 24 removed; 6 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 (11)
Current report
Tariffs. The imposition of tariffs (including U.S. tariffs imposed or threatened to be imposed on a number of countries and any tariffs imposed by such countries) have impacted and could continue to impact our supply chain resulting in increased input costs, including the cost of certain raw materials and packaging. During the thirteen weeks ended May 2, 2026, the U.S. Supreme Court ruled that many of the tariffs previously imposed under the International Emergency Economic Powers Act were invalid. The ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory, and administrative developments. In addition, the U.S. Administration initiated new tariffs and may impose additional tariffs. As a result, there remains significant uncertainty regarding the duration and scope of existing and future tariffs and the impact of such tariffs will continue to vary, including based on where inputs are sourced from and shipped to. In addition, any supply chain constraints, inflationary impacts or reduced consumer demand for our products as a result of such tariffs or ongoing macroeconomic uncertainty have impacted and could continue to impact our results. We will continue to evaluate the nature and extent of the impact of these tariffs on our business, to identify actions to potentially mitigate, where possible, any unfavorable impacts on our business and to monitor the regulatory and administrative developments around the potential refund of tariffs previously paid and assess their impact on our future results.
Current report
Risks Associated with Ongoing Conflicts. Ongoing or escalating geopolitical tensions and military activity, including conflicts involving the Middle East, Iran, Ukraine, and Venezuela, may adversely affect the Company’s business, financial condition, and results of operations. Heightened geopolitical instability in the Middle East has contributed to uncertainty in global economic and financial conditions, including potential constraints affecting key shipping routes such as the Strait of Hormuz, and increased volatility in energy, fuel, and transportation markets, as well as contributing to volatility in labor, financial, and commodity markets. These developments may disrupt global supply chains, including the availability and cost of fuel, energy, transportation, and other critical materials, which would have an adverse effect on our results of operations. Disruptions to fuel and energy supply, including as a result of government‑imposed restrictions, sanctions, export controls, or other regulatory actions, could materially increase the Company’s operating costs or require the temporary suspension or shutdown of certain mining operations where reliable access to fuel or power is essential to safe and continuous operations. Heightened geopolitical tensions may also increase cybersecurity risks, including threats to energy infrastructure, logistics providers, financial systems, and other third‑party service providers.
Current report
Selling, General and Administrative Expenses
Current report
SG&A expenses for the thirteen weeks ended May 2, 2026 decreased $1.4 million, or 1.5%, to $89.7 million from $91.1 million for the thirteen weeks ended May 3, 2025. The decrease was primarily driven by $2.0 million decrease in consulting and professional fees, that is primarily due to the cancelation of the Elm Street Consulting Agreement during the second quarter of 2025, and $1.5 million in marketing expenses. These decreases were partially offset by $1.2 million increase in selling expenses and an aggregated $0.9 million increase across hosting, recruiting, supplies, and compensation and benefits expenses.
Current report
On December 12, 2025, the Company and Jill Acquisition LLC (the “Borrower”) entered into a new Term Loan Credit Agreement (the “2025 Term Loan Credit Agreement”), with the lenders party thereto from time to time and CCP Agency, LLC, as administrative agent and as collateral agent. The 2025 Term Loan Credit Agreement provides for a senior secured term loan facility in an aggregate principal amount of $75.0 million with a maturity date of December 12, 2030 (the “2025 Term Loan Facility”). As of May 2, 2026, the outstanding principal balance under the 2025 Term Loan Credit Agreement was $74.5 million.
Current report
The proceeds from the 2025 Term Loan Facility were used to pay off in full all outstanding principal balance under the Term Loan Credit Agreement dated as of April 5, 2023 (the “2023 Term Loan Credit Agreement”). All security interests and liens granted in connection with the 2023 Term Loan Credit Agreement were released.
Current report
The 2025 Term Loan Facility is to be repaid in quarterly payments of approximately $0.5 million on the last business day of each fiscal quarter of the borrower, commencing with the fiscal quarter ended May 2, 2026, until January 30, 2027 and of approximately $0.2 million commencing on the fiscal quarter ending May 1, 2027 and each fiscal quarter thereafter, with the remaining aggregate principal amount of Initial Term Loans then outstanding to be paid on maturity on December 12, 2030. Additionally, the 2025 Term Loan Facility is subject to mandatory repayment, subject to certain exceptions, including (i) 100% of the net proceeds of any issuance or incurrence of indebtedness other than debt permitted in the 2025 Term Loan Credit Agreement, (ii) 100% of the net cash proceeds of certain asset sales/insurance proceeds, subject to reinvestment rights and certain other exceptions, and (iii) an annual payment ranging from 25%-75%, based on the First Lien Net Leverage Ratio, of the annual Excess Cash Flow, less certain voluntary prepayments made during the year, as defined in the 2025 Term Loan Credit Agreement.
Current report
The 2025 Term Loan Facility may be voluntarily prepaid after the one-year anniversary without premium or penalty but on or prior to the one-year anniversary, subject to a premium of 1.0% of the aggregate principal amount being prepaid.
Current report
The obligations under the 2025 Term Loan Credit Agreement were guaranteed by the Company and J.Jill Gift Card Solutions, Inc., and were secured by substantially all of the real and personal property of the Borrower and the guarantors, subject to customary exceptions. The agreement included customary representations and warranties, affirmative and negative covenants, financial covenants, and events of default.
Current report
During Fiscal Year 2025, in conjunction with entering into the 2025 Term Loan Credit Agreement, the Company incurred $0.3 million of third-party fees which were expensed as incurred.
Current report
$1.7 million. The change in operating assets and liabilities was driven primarily by decreased payments for inventory of $5.4 million, due to the timing of receipt of goods and tariffs, accrued expenses and other current liabilities of $0.9 million, operating lease assets and liabilities of $0.8 million due primarily to lease amortization, and accounts receivable of $0.2 million. The change in operating assets and liabilities was offset by lower cash inflows relating to timing of payments for accounts payable of $6.2 million, largely reflecting higher merchandising payables, prepaid expenses and other current assets of $0.9 million, and timing of payments relating to other noncurrent assets of $0.4 million.
Removed paragraphs (24)
Previous 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.
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
(g)
Previous report
Represents loss on write-off of property and equipment and inventory at one store location due to hurricane.
Previous report
(h)
Previous report
SG&A expenses for the thirteen weeks ended November 1, 2025 increased $3.2 million, or 3.6%, to $91.8 million from $88.6 million for the thirteen weeks ended November 2, 2024. The increase was primarily driven by $1.6 million increase in severance-related expenses, $1.1 million increase in outbound shipping costs, $0.6 million in increased occupancy costs, $0.6 million increase in information system costs, $0.3 million increase in amortization of cloud based software implementation costs, $0.2 million increase in marketing expense, and $0.2 million in recruiting expenses, partially offset by a decrease of $1.5 million in compensation, benefits and management incentive expense.
Previous report
Thirty-nine weeks ended November 1, 2025 Compared to Thirty-nine weeks ended November 2, 2024
Previous report
Net Sales
Previous report
Retail contributed 53.3% of our net sales in the thirty-nine weeks ended November 1, 2025 and 53.4% in the thirty-nine weeks ended November 2, 2024. Our Direct channel contributed 46.7% of our net sales in the thirty-nine weeks ended November 1, 2025 and 46.6% in the thirty-nine weeks ended November 2, 2024.
Previous report
Gross profit for the thirty-nine weeks ended November 1, 2025 decreased $12.7 million, or 3.8%, to $322.4 million from $335.1 million for the thirty-nine weeks ended November 2, 2024. The gross margin for the thirty-nine weeks ended November 1, 2025 was 70.4% compared to 71.6% for the thirty-nine weeks ended November 2, 2024. The decrease in gross profit and gross margin for the thirty-nine weeks ended November 1, 2025 was primarily driven by higher full-price promotional rates, higher mix of markdown sales, and increased tariffs compared to the thirty-nine weeks ended November 2, 2024.
Previous report
SG&A expenses for the thirty-nine weeks ended November 1, 2025 increased $7.4 million, or 2.8%, to $271.5 million from $264.1 million for the thirty-nine weeks ended November 2, 2024. The increase was primarily driven by $5.0 million increase in consulting costs, CEO transition costs, and severance-related expenses, $3.2 million increase in technology related costs, primarily related to application hosting and lower capitalized technology payroll, $2.4 million increase in occupancy costs, $1.8 million increase in outbound shipping costs, primarily due to increased shipments fulfilled from stores, and $0.6 million in marketing, partially offset by a decrease of $5.5 million in compensation, benefits and management incentive expense, compared to the thirty-nine weeks ended November 2, 2024.
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. No such loss was incurred by the Company during the thirty-nine weeks ended November 1, 2025.
Previous report
As a percentage of net sales, SG&A expenses were 59.3% for the thirty-nine weeks ended November 1, 2025 compared to 56.4% for the thirty-nine weeks ended November 2, 2024.
Previous report
Impairment of long-lived assets
Previous report
For the thirty-nine weeks ended November 1, 2025 and November 2, 2024, the Company recorded noncash impairment charges of $0.2 million and $0.4 million primarily related to leasehold improvements at certain store locations.
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 November 1, 2025.
Previous report
Interest Expense
Previous report
Interest expense was $8.2 million and $13.0 million for the thirty-nine weeks ended November 1, 2025 and November 2, 2024, respectively. The decrease was primarily due to a lower debt balance for the thirty-nine weeks ended November 1, 2025.
Previous report
Interest Income
Previous report
Income Tax Provision
Previous report
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 report
As of November 1, 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$4.0 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.
Reworded paragraphs (24)
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 255 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston, Massachusetts.
Previous wording
Our Strategic Initiatives. The ongoing implementation of strategic initiatives will continue to have an impact on our results of operations. These initiatives include our ecommerce platform and our initiative to upgrade and enhance our information systems, including the upgrade of our order management system. Although initiatives of this nature are designed to create growth in our business and continue improvement in our operating results, the timing of expenditures related to these initiatives, as well as the achievement of returns on our investments, may affect our results of operations in future periods.
Current wording
Our Strategic Initiatives. The ongoing implementation of strategic initiatives will continue to have an impact on our results of operations. These initiatives include our ecommerce platform and inventory enhancement. Although initiatives of this nature are designed to create growth in our business and continue improvement in our operating results, the timing of expenditures related to these initiatives, as well as the achievement of returns on our investments, may affect our results of operations in future periods.
Previous wording
Selling, general and administrative (“SG&A”) expenses include all operating costs not included in COGS. These expenses consist primarily of all payroll and related expenses, occupancy costs, information systems costs and other operating expenses related to our stores and operations at our headquarters, including utilities, depreciation and amortization. These expenses also consist of marketing expense, including catalog production and mailing costs, warehousing, distribution and outbound shipping costs, customer service operations, consulting and software services, natural disasters, professional services and other administrative costs.
Current wording
Selling, general and administrative (“SG&A”) expenses include all operating costs not included in COGS. These expenses consist primarily of all payroll and related expenses, occupancy costs, information systems costs and other operating expenses related to our stores and operations at our headquarters, including utilities, depreciation and amortization. These expenses also consist of marketing expense, including catalog production and mailing costs, warehousing, distribution and outbound shipping costs, customer service operations, consulting and software services, natural disasters, professional services and other administrative costs. Additionally, our outbound shipping costs may fluctuate due to surcharges from shipping vendors based on demand for shipping services.
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, 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, severance expense, 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, and other non-recurring items, primarily consisting of non-ordinary course professional fees, non-employee share-based payments, CEO transition costs, severance expense 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 noncash gains associated with exiting store leases earlier than anticipated.
Current wording
Represents non-cash gains associated with exiting store leases earlier than anticipated.
Previous wording
Net sales for the thirteen weeks ended November 1, 2025 decreased $0.7 million, or 0.5%, to $150.5 million from $151.3 million for the thirteen weeks ended November 2, 2024. At the end of those same periods, we operated 249 and 247 retail stores, respectively. The decrease in net sales was primarily due to a decrease in total company comparable sales of 0.9% compared to the thirteen weeks ended November 2, 2024. The decrease in total company comparable sales was primarily driven by a decline in unit sales partially offset by an increase in average unit retail price compared to the thirteen weeks ended November 2, 2024.
Current wording
Net sales for the thirteen weeks ended May 2, 2026 decreased $9.2 million, or 6.0%, to $144.4 million from $153.6 million for the thirteen weeks ended May 3, 2025. At the end of those same periods, we operated 255 and 249 retail stores, respectively. The decrease in net sales was primarily due to a decrease in total company comparable sales of 8.7%, the decrease was primarily driven by a decline in unit sales partially offset by an increase in the average unit retail price compared to the thirteen weeks ended May 3, 2025.
Previous wording
Retail contributed 53.2% of our net sales in the thirteen weeks ended November 1, 2025 and 54.3% in the thirteen weeks ended November 2, 2024. Our Direct channel contributed 46.8% of our net sales in the thirteen weeks ended November 1, 2025 and 45.7% in the thirteen weeks ended November 2, 2024.
Current wording
Retail contributed 54.4% of our net sales in the thirteen weeks ended May 2, 2026 and 53.3% in the thirteen weeks ended May 3, 2025. Our Direct channel contributed 45.6% of our net sales in the thirteen weeks ended May 2, 2026 and 46.7% in the thirteen weeks ended May 3, 2025.
Previous wording
Gross profit for the thirteen weeks ended November 1, 2025 decreased $1.3 million, or 1.2%, to $106.7 million from $108.0 million for the thirteen weeks ended November 2, 2024. The gross margin for the thirteen weeks ended November 1, 2025 was 70.9% compared to 71.4% for the thirteen weeks ended November 2, 2024. The decrease in gross profit and gross margin for the thirteen weeks ended November 1, 2025 was primarily driven by increased tariffs, partially offset by higher average unit retail prices and favorable freight rates compared to the thirteen weeks ended November 2, 2024.
Current wording
Gross profit for the thirteen weeks ended May 2, 2026 decreased $11.7 million, or 10.6%, to $98.7 million from $110.4 million for the thirteen weeks ended May 3, 2025. The gross margin for the thirteen weeks ended May 2, 2026 was 68.3% compared to 71.8% for the thirteen weeks ended May 3, 2025. The decrease in gross profit and gross margin for the thirteen weeks ended May 2, 2026 was driven by higher full-price promotional rates, higher mix of markdown sales, and increased tariffs compared to the thirteen weeks ended May 3, 2025.
Previous wording
As a percentage of net sales, SG&A expenses were 61.0% for the thirteen weeks ended November 1, 2025 and 58.6% for the thirteen weeks ended November 2, 2024.
Current wording
As a percentage of net sales, SG&A expenses were 62.1% for the thirteen weeks ended May 2, 2026 and 59.3% for the thirteen weeks ended May 3, 2025.
Previous wording
For the thirteen weeks ended November 1, 2025, the Company did not record any impairment charges. For the thirteen weeks ended November 2, 2024, the Company recorded $0.1 million of impairment charges.
Current wording
The Company recorded $0.2 million of impairment charges for the thirteen weeks ended May 2, 2026 and May 3, 2025.
Previous wording
Interest expense was $2.7 million and $2.8 million for the thirteen weeks ended November 1, 2025 and November 2, 2024, respectively. The decrease was due to a lower debt balance and a lower interest rate for the thirteen weeks ended November 1, 2025.
Current wording
Interest expense was $1.9 million and $2.8 million for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. The decrease was due to a lower interest rate for the thirteen weeks ended May 2, 2026 as a result of the debt refinancing that took place in December 2025.
Previous wording
For the thirty-nine weeks ended November 1, 2025, the Company earned interest on cash of $1.5 million, compared to $2.0 million for the thirty-nine weeks ended November 2, 2024. The decrease in earned interest is primarily due to lower average cash balances and lower interest rates compared to the prior year period.
Current wording
For the thirteen weeks ended May 2, 2026, the Company earned interest on cash of $0.3 million, compared to $0.4 million for the thirteen weeks ended May 3, 2025. The decrease was primarily due to lower interest rate for the thirteen weeks ended May 2, 2026.
Previous wording
The Company’s income tax provision was $3.6 million for the thirteen weeks ended November 1, 2025 compared to $4.5 million for the thirteen weeks ended November 2, 2024, while our effective tax rates for the same periods were 28.0% and 26.8%, respectively. The effective tax rate during the thirteen weeks ended November 1, 2025 is higher primarily due to the impact of state and local income taxes and executive compensation limitations. The tax provision decreased year over year due to lower pre-tax income.
Current wording
The income tax provision was $2.5 million for the thirteen weeks ended May 2, 2026 compared to $5.0 million for the thirteen weeks ended May 3, 2025, while our effective tax rates for the same periods were 35.2% and 29.8%, respectively. The effective tax rate during the thirteen weeks ended May 2, 2026 is higher primarily due to the impact of state and local income taxes, stock compensation shortfalls 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 1, 2025, we had $58.0 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 2025 Term Loan Credit Agreement are met. As of May 2, 2026, we had $36.3 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
The Company is party to a secured $175.0 million Term Loan Credit Agreement, with a maturity date of May 8, 2028.
Current wording
The Company is party to a secured $40.0 million asset-based revolving credit facility agreement (the “ABL Credit Agreement” and, such facility, the “ABL Facility”), as amended, with a maturity date of May 10, 2028 (or 180 days prior to the maturity date of the Company’s 2025 Term Loan Credit Agreement if the maturity date of such 2025 Term Loan Facility has not been extended to a date that is at least 180 days after the maturity date of the ABL Credit Agreement).
Previous wording
Net cash provided by operating activities decreased by $13.2 million during the thirty-nine weeks ended November 1, 2025 compared to the thirty-nine weeks ended November 2, 2024. The decrease during the thirty-nine weeks ended November 1, 2025 was driven by a decrease in net income of $5.8 million, adjustments to reconcile net income of $6.0 million and a change in operating assets and liabilities of $1.3 million. The change in operating assets and liabilities was driven primarily by $7.9 million decrease in accounts payable, largely reflecting lower merchandise payables, and $2.9 million decrease in accrued expenses and other current liabilities, mainly due to reduced management incentive accruals and the settlement of prior-period tax and operating liabilities. These decreases were partially offset by increases in other noncurrent assets and liabilities of $4.3 million driven by capitalized cloud based software implementation costs, inventory of $3.0 million due to seasonal inventory build and higher tariff costs, accounts receivable of $1.6 million reflecting the timing of credit card receivable collections, and $0.8 million in prepaid expenses and other current assets.
Current wording
Net cash provided by operating activities decreased by $3.6 million during the thirteen weeks ended May 2, 2026 compared to the thirteen weeks ended May 3, 2025. The decrease during the thirteen weeks ended May 2, 2026 was driven by a decrease in net income of $7.0 million, offset by adjustments to reconcile net income of $1.7 million and changes in operating assets and liabilities of
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, 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 2, 2026 was $1.7 million. Key elements of cash provided by operating activities were (i) net income of $4.7 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 $10.6 million for net operating assets and liabilities.
Previous wording
Net cash provided by operating activities during the thirty-nine weeks ended November 1, 2025 was $43.7 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 $23.2 million, primarily driven by depreciation and amortization, changes in deferred taxes, and equity-based compensation, and (iii) uses of cash totaling $10.9 million for net operating assets and liabilities driven by higher merchandise and in-transit inventory, increased prepaid balances from annual payments and project spend, lower accrued expenses reflecting reduced incentive and gift card liabilities, and lease-related timing impacts.
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 used in investing activities during the thirty-nine weeks ended November 1, 2025 and November 2, 2024 was $8.8 million and $10.0 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 2, 2026 and the thirteen weeks ended May 3, 2025 was $2.8 million and $2.7 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 $12.4 million for the thirty-nine weeks ended November 1, 2025 compared to $70.3 million for the thirty-nine weeks ended November 2, 2024. Net cash used in financing activities for the thirty-nine weeks ended November 1, 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 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.
Current wording
Net cash used in financing activities was $3.6 million for the thirteen weeks ended May 2, 2026 compared to $6.8 million for the thirteen weeks ended May 3, 2025. Net cash used in financing activities for the thirteen weeks ended May 2, 2026 consisted primarily of the quarterly cash dividend paid to shareholders, share repurchase costs, net of commission and fees, surrender of shares to pay withholding taxes, and principal repayments on the 2025 Term Loan. 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.
Previous wording
During the thirteen weeks ended November 1, 2025, the Board declared a quarterly cash dividend payment of $0.08 per share of common stock (the “Dividend”). The Dividend was payable on October 1, 2025 to stockholders of record of issued and outstanding shares of the Company’s common stock as of September 17, 2025. During the thirteen and thirty-nine weeks ended November 1, 2025, the Company paid $1.2 million and $3.7 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 in the condensed consolidated balance sheets.
Current wording
During the thirteen weeks ended May 2, 2026, the Board declared a quarterly cash dividend payment of $0.09 per share of common stock (the “Dividend”). The Dividend was payable on April 28, 2026 to stockholders of record of issued and outstanding shares of the Company’s common stock as of April 14, 2026. During the thirteen weeks ended May 2, 2026, the Company paid $1.3 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 1, 2025, the Board declared a quarterly cash dividend of $0.08 per share, payable on January 7, 2026 to stockholders of record of issued and outstanding shares of the Company’s common stock as of December 24, 2025.
Current wording
Subsequent to May 2, 2026, on June 3, 2026, the Board declared a quarterly cash dividend of $0.09 per share, payable on July 8, 2026 to stockholders of record of issued and outstanding shares of the Company’s common stock as of June 24, 2026.
Previous 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.
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
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.
Current wording
During Fiscal Year 2025, the Company revised its methodology for estimating the sales returns reserve. See Note 2 - Summary of Significant Accounting Policies for additional information.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Additionally, our outbound shipping costs may fluctuate due to surcharges from shipping vendors based on demand for shipping services.
Previous report — wording carried elsewhere
For the thirteen weeks ended November 1, 2025 and November 2, 2024, the Company earned interest on cash of $0.6 million and $0.5 million, respectively.
Previous report — wording carried elsewhere
The following table summarizes our condensed consolidated results of operations for the periods indicated:
Previous report — wording carried elsewhere
Net sales for the thirty-nine weeks ended November 1, 2025 decreased $9.9 million, or 2.1%, to $458.1 million from $468.0 million for the thirty-nine weeks ended November 2, 2024. At the end of those same periods, we operated 249 and 247 retail stores, respectively. The decrease in net sales was primarily due to total company comparable sales decrease of 2.6%. The decrease in total company comparable sales was primarily driven by a decline in unit sales partially offset by an increase in the average unit retail price compared to the thirty-nine weeks ended November 2, 2024.
Previous report — wording carried elsewhere
Gross Profit and Costs of Goods Sold
Previous report — wording carried elsewhere
The Company’s income tax provision was $12.6 million for the thirty-nine weeks ended November 1, 2025 compared to $13.8 million for the thirty-nine weeks ended November 2, 2024, while our effective tax rates for the same periods were 28.6% and 27.1%, respectively. The effective tax rate during the thirty-nine weeks ended November 1, 2025 is higher primarily due to the impact of state and local income taxes and executive compensation limitations. The tax provision declined compared to the prior year as a result of lower pre-tax income.