Q1 2026 J.Jill Inc Earnings Call
Operator: Please wait, the conference will begin shortly. Ladies and gentlemen, thank you for standing by.
Please wait the conference will begin shortly.
[music].
Christa: Ladies and gentlemen, thank you for standing by my name is Christa and I will be your conference operator today at this time I would like to welcome everyone to the J Jill first quarter 'twenty 25 earnings conference call.
Krista: My name is Krista and I will be your conference operator today.
Krista: At this time, I would like to welcome everyone to the J.Jill first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question, again, press star one.
All lines have been placed on mute to prevent any background noise.
The Speakers' remarks, there will be a question and answer session. If you would like to ask a question during that time simply press star followed by the number one on your telephone keypad.
If you'd like to withdraw that question I got and press Star one.
Krista: Before we begin, I need to remind you that certain comments made during these remarks may constitute forward-looking statements and are made pursuant to, and within the meeting, the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release and J.Jill's SEC filings.
<unk>, we begin I need to remind you that certain comments made during these remarks may constitute forward looking statements and are made pursuant to and within the meeting the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 as amended such forward looking statements are.
Christa: Subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.
Christa: These risks and uncertainties are described in the press release and J jealous SEC filings.
Krista: The forward-looking statements made on this recording are as of June 11, 2025, and J.Jill does not undertake any obligation to update these forward-looking statements.
Christa: The forward looking statements made on this recording or as of June 11 to 2025, and J Jill J Jill does not undertake any obligation to update these forward looking statements.
Krista: Finally, J.Jill may refer to certain adjusted or non-GAAP financial measures during these remarks. A reconciliation schedule showing the GAAP versus non-GAAP financial measures is available in the press release issued June 11, 2025.
Christa: Finally, a J Jill may refer to certain adjusted or non-GAAP financial measures. During these remarks, a reconciliation schedule showing the GAAP versus non-GAAP financial measures is available in the press release issued June 11th 2025.
Krista: If you do not have a copy of today's press release, you may obtain one by visiting the Investors Relations page of the website at jjill.com.
Christa: If you do not have a copy of today's press release, you may obtain one by visiting the investors relation page of the website at J Jill Dotcom.
Mary Ellen Coyne: And it is now my pleasure to turn today's conference over to Mary Ellen Coyne, Chief Executive Officer and President at J.Jill. Mary Ellen, the floor is yours. Good morning, and thank you for joining us.
Speaker Change: It is now my pleasure to turn today's conference over to Mary Ellen Cohen.
Speaker Change: Chief Executive Officer, and President at J, Jill Mary Ellen the floor is yours.
Speaker Change: Good morning, and thank you for joining us I'm very excited to be speaking with you today as the newest member of the J Jill executive team.
Mary Ellen Coyne: I am very excited to be speaking with you today as the newest member of the J.Jill executive team. Having spent the last three decades in retail, and specifically women's apparel and accessories, I understand what a special brand J.Jill is and the important role we play in serving a very loyal customer base. One that has grown over time and is often underserved but highly valuable. Throughout my career, I've learned that successful retail brands are built on authentic connections with customers, and J.Jill has that foundation in place. While we are navigating challenges today stemming from the current environment, increased uncertainty affecting consumer spending, and certain underperforming areas of the assortment, I strongly believe in this brand and the opportunities ahead.
Christa: Having spent the last three decades in retail.
Christa: Specifically women's apparel and accessory I understand what a special brands J Jill is and the important role we play in serving a very loyal customer base.
Christa: One that has grown over time and is often underserved but highly valuable.
Christa: Throughout my career I have learned that successful retail brands are built on authentic connections with customers.
Christa: And J Jill has the foundation in place.
Christa: While we are navigating challenges today stemming.
Christa: Stemming from the current environment.
Christa: Increased uncertainty affecting consumer spending.
Christa: And certain underperforming areas of the assortment.
Christa: We strongly believe in this brand and the opportunities ahead.
Mary Ellen Coyne: It was this belief and my passion for serving this customer that brought me to this role. I have a proven track record of building teams and growing businesses profitably. My background is rooted in products and merchandising, having spent 16 years at Ralph Lauren, before moving on to my most recent role as the CEO of J. McLaughlin. I not only have a deep understanding for the industry, but strong admiration for the customer J.Jill serves. In my previous roles, I have scaled businesses through multi-channel expansion. Elevating Product Offerings and Introducing New Categories. I see opportunities across all those areas here while maintaining the brand's core identity, which has supported such loyalty over the years.
Christa: It was this belief and my passion for serving this customer that brought me to this role.
Christa: I have a proven track record of building teams and growing businesses profitably.
Christa: My background is rooted in product and merchandising having spent 16 years at Ralph Lauren before moving on to my most recent role as the CEO of J Mclaughlin.
Speaker Change: Not only have a deep understanding for the industry, but strong admiration for the customer J Jill serves.
Speaker Change: In my previous roles I have scaled businesses through multichannel expansion elevating.
Speaker Change: Elevating product offerings and introducing new categories.
Speaker Change: I see opportunities across all of those areas here, while maintaining the brand's core identity, which has supported such loyalty over the years.
Mary Ellen Coyne: Over the past five weeks, I have immersed myself in the business, engaging with our teams, visiting stores, and talking with associates and customers. I am working diligently to assess all areas of the business. Where our strengths are, where there are opportunities, and how we can evolve and improve performance. This initial review will inform my views on our path forward. What is clear, however, is the inspiring dedication that I have seen across our organization to delivering customers the experience they value from J.Jill. I am energized by the opportunities ahead and will be working with the team to leverage the investments that have been made in stores, marketing, and systems. The fundamentals of this business are here.
Speaker Change: Over the past five weeks I have immersed myself in the business engaging with our teams visiting stores and talking with associates and customers.
Speaker Change: I am working diligently to assess all areas of the business.
Speaker Change: Where our strengths are where there are opportunities and how we can evolve and improve performance.
Speaker Change: This initial review will inform my views on our path forward.
Speaker Change: It is clear however is the inspiring dedication that I have seen across our organization to delivering customers the experience they value from J Jill.
Speaker Change: I am energized by the opportunities ahead, and we will be working with the team to leverage the investments that have been made in store marketing and systems.
Speaker Change: <unk> of this business are here we.
Mary Ellen Coyne: We have a loyal customer base, a lean operating model, and strengthening omni-channel capability.
Speaker Change: We have a loyal customer base, a lean operating model and strengthening omnichannel capabilities.
Mary Ellen Coyne: I look forward to providing more insights into our plans and initiatives on our September earnings call.
Speaker Change: I look forward to providing more insights into our plans and initiatives on our September earnings call.
Mark Webb: Now I will hand the call over to Mark to review our first quarter performance.
Speaker Change: Now I will hand, the call over to Mark to review, our first quarter performance Mark.
Mark Webb: Mark. Thank you, Mary Ellen, and good morning, everyone.
Mark: Thank you Mary Ellen and good morning, everyone I'd like to welcome Mary Ellen to her first earnings call. We are excited to have you leading J Jill and are energized by your passion for this customer and proven track record driving growth in this industry.
Mark Webb: I'd like to welcome Mary Ellen to her first earnings call. We are excited to have you leading J.Jill and are energized by your passion for this customer and proven track record driving growth in this industry. We look forward to sharing more on Mary Ellen's assessment of the business and strategies on our second quarter earnings call in September.
Speaker Change: We look forward to sharing more on Mary Ellen's assessment of the business and strategies on our second quarter earnings call in September but for now let me review our first quarter performance. We entered the first quarter with known challenges we experienced adverse weather in February and we cut over to our new <unk> system in March overall.
Mark Webb: But for now, let me review our first quarter performance. We entered first quarter with known challenges. We experienced adverse weather in February, and we cut over to our new OMS system in March. Overall, the OMS project went very well, and we are excited to now have a modern platform from which we can scale and grow. But the cutover did have a slightly larger impact on Q1 performance than anticipated. In addition to these known headwinds, we believe we had opportunities in the assortment and the macroeconomic environment continued to be volatile with uncertainty related to global trade policy impacting our customers' behavior, particularly in April and into May.
Speaker Change: All the RMS project went very well and we are excited to now have a modern platform from which we can scale and growth, but the cutover did have a slightly larger impact on Q1 performance than anticipated.
Speaker Change: In addition to these known headwinds we believe we had opportunities in the assortment and the macroeconomic environment continued to be volatile with uncertainty related to global trade policy impacting our customers' behavior, particularly in April and into May.
Mark Webb: Despite these challenges, we delivered EBITDA above the high end of our previously guided range, due primarily to disciplined expense management, and continue to deploy cash to shareholders through our quarterly dividend and share repurchase program. While we remain confident in the long-term resiliency of our loyal customer base and the opportunities to grow this business, we continue to navigate near-term uncertainty with respect to tariffs and the impact the ongoing volatility will have on our customer.
Speaker Change: Despite these challenges we delivered EBITDA above the high end of our previously guided range due primarily to disciplined expense management and continued to deploy cash to shareholders through our quarterly dividend and share repurchase program.
Speaker Change: While we remain confident in the long term resiliency of our loyal customer base and the opportunities to grow. This business. We continue to navigate near term uncertainty with respect to tariffs and the impact of the ongoing volatility will have on our customer.
Mark Webb: Because of this, and also to provide Mary Ellen with the necessary time to complete her assessment of the business, we are withdrawing our prior full-year guidance and temporarily suspending our practice of providing forward guidance on most metrics.
Speaker Change: As of this and also to provide Mary Ellen with the necessary time to complete her assessment of the business. We are withdrawing our prior full year guidance and temporarily suspending our practice of providing forward guidance on most metrics I will discuss more on this but first let me review more details on our first quarter performance.
Mark Webb: I will discuss more on this, but first let me review more details on our first quarter performance. Total company sales for the quarter were about $154 million, down 4.9% compared to Q1 2024, inclusive of total company comparable sales decline of 5.7%, which was partially offset by sales from new stores opened last year. Total company sales also reflected a $2 million negative impact from the OMS cutover. Store sales for Q1 were down about 4.4% compared to Q1 2024, and direct sales, which represented about 47% of total sales in the quarter, were down 5.4% compared to first quarter of fiscal 2024.
Speaker Change: <unk>.
Speaker Change: Total company sales for the quarter were about $154 million.
Speaker Change: Down four 9% compared to Q1 2024 inclusive of total company comparable sales decline of five 7%, which was partially offset by sales from new stores opened last year.
Speaker Change: Total company sales also reflected a $2 million negative impact from the O&M cutover.
Speaker Change: Store sales for Q1 were down about four 4% compared to Q1, 2024, and direct sales, which represented about 47% of total sales in the quarter were down five 4% compared to first quarter of fiscal 2024.
Mark Webb: As mentioned, weather impacted store traffic earlier in the quarter, while the OMS cutover had an outsized impact in our direct channel in March. In addition, our customer became more discerning with her spend in April, which was most pronounced in our direct channel, as she primarily shopped markdowns, which put pressure on average unit retails and gross margin. Q1 total company gross profit was about $110 million, down about $7 million compared to Q1 2024. Q1 gross margin was 71.8%, down 110 basis points versus Q1 2024, driven by higher mix of markdown sales, primarily in the direct channel, and higher full price promotional rates in both channels.
Speaker Change: As mentioned weather impacted store traffic earlier in the quarter, while the Oems Cutover had an outsized impact in our direct channel in March. In addition, our customer became more discerning with her spend in April which was most pronounced in our direct channel as she primarily shopped markdowns, which put pressure on average.
Speaker Change: Unit retails and gross margin.
Speaker Change: Q1 total company gross profit was about $110 million down about $7 million compared to Q1 2024 Q.
Speaker Change: Q1 gross margin was 71, 8% down 110 basis points versus Q1, 2024, driven by higher mix of markdown sales, primarily in the direct channel and higher full price promotional rates in both channels.
Mark Webb: SG&A expenses for the quarter were about $91 million compared to approximately $89 million last year. The increase was driven primarily by store expenses associated with five incremental new stores compared to prior year, OMS related costs which came in at $1.6 million versus $700,000 last year, and merit increases partially offset by lower management incentive accruals. Adjusted EBITDA was $27.3 million in the quarter, compared to $35.6 million in Q1 2024. Interest expense was $2.8 million in Q1 compared to $6.4 million last year. Adjusted net income per diluted share was $0.88 compared to $1.22 last year, which reflected a diluted share count of 15.4 million shares this year versus 14.4 million shares last year, as well as a benefit of about $0.01 per share related to repurchase activity in the quarter.
Speaker Change: SG&A expenses for the quarter were about $91 million compared to approximately $89 million last year. The increase was driven primarily by store expenses associated with five incremental new stores compared to prior year.
Speaker Change: Related costs, which came in at $1 $6 million.
Speaker Change: Versus $700000 last year, and merit increases, partially offset by lower management incentive accruals.
Speaker Change: Adjusted EBITDA was $27 $3 million in the quarter compared to $35 6 million in Q1 2024.
Speaker Change: Interest expense was $2 8 million in Q1 compared to $6 $4 million last year.
Speaker Change: Adjusted net income per diluted share was <unk> 88.
Speaker Change: Compared to a $1 22 last year, which reflected a diluted share count of $15 4 million shares this year versus $14 4 million shares last year as well as a benefit of about one <unk> per share related to repurchase activity in the quarter during.
Mark Webb: During the quarter, we repurchased 186,800 shares for approximately $3.5 million, and as of June 11, we have approximately $21 million remaining on the $25 million share repurchase authorization.
Speaker Change: During the quarter, we repurchased 186800 shares for approximately $3 $5 million and as of June 11th we have approximately $21 million remaining on the $25 million share repurchase authorization.
Mark Webb: Please refer to today's press release for reconciliations of non-GAAP financial measures to their most comparable GAAP financial measures, adjusted EBITDA, adjusted net income and adjusted net income per diluted share to net income and free cash flow to cash from operations. Turning to cash flow, for the quarter we generated about $5.3 million of cash from operations resulting in ending cash of about $31 million and zero borrowings against the ABL. Looking at inventory, total reported inventories were up about 14% at the end of the first quarter compared to end of first quarter last year, primarily due to an extra week in the supply chain we initiated last year in Q2 in response to Red Sea disruption.
Speaker Change: Please refer to today's press release for reconciliations of non-GAAP's financial measures to their most comparable financial.
Speaker Change: Financial measures adjusted EBITDA, adjusted net income and adjusted net income per diluted share to net income and free cash flow to cash from operations.
Speaker Change: Turning to cash flow for the quarter, we generated about $5 $3 million of cash from operations, resulting in ending cash of about $31 million and zero borrowings against the ABL.
Speaker Change: Looking at inventory total reported inventories were up about 14% at the end of the first quarter compared to end of first quarter last year, primarily due to an extra week in the supply chain. We initiated last year in Q2 in response to read see disruption <unk>.
Mark Webb: Excluding this extra week of inventory, normalized inventory was up about 5% consisting primarily of higher seasonal basic and basic full price inventory, which while less liable than fashion, will present margin pressure in Q2 as we take select markdowns and implement promotions. Capital expenditures for the quarter were $2.7 million compared to $2.3 million last year. Investments were focused primarily on stores as well as the completion of the OMS project including the initiation of work to enable ship and store capabilities in the back half of this year. With respect to store count, we closed three stores during the first quarter, including the two we discussed on our last call that shifted in from the fourth quarter of 2024.
Speaker Change: Excluding this extra week of inventory normalized inventory was up about 5%, consisting primarily of higher seasonal basic and basic full priced inventory, which while less liable and fashion will present margin pressure in Q2, as we take select markdowns and implement promotions.
Speaker Change: Capital expenditures for the quarter were $2 $7 million compared to $2 3 million last year.
Speaker Change: <unk>, we're focused primarily on stores as well as the completion of the <unk> project, including the initiation of work to enable ship from store capabilities in the back half of this year.
Speaker Change: With respect to store count we closed three stores during the first quarter, including the two we discussed on our last call that shifted from the fourth quarter of 2024, we did not open any new stores in the quarter, resulting in end of quarter store count of 249 stores compared to 244 stores.
Mark Webb: We did not open any new stores in the quarter, resulting in end of quarter store count of 249 stores compared to 244 stores at end of Q1 last year.
Speaker Change: At end of Q1 last year.
Mark Webb: Now for more on our outlook. As I mentioned, given the increased uncertainty with respect to the macro economic environment, along with our recent CEO transition, we are withdrawing our prior full year guidance and temporarily suspending our practice of providing forward guidance on most metrics. That said, our teams are diligently working to assess opportunities for improvement within the assortment, and we have taken swift actions to reduce inventory investments in floor sets beginning in the third quarter to better align with current demand trends. Quarter to date through May, total company sales are down mid-single digits compared to the prior year period.
Speaker Change: Now for more on our outlook.
Speaker Change: As I mentioned, given the increased uncertainty with respect to the macroeconomic environment along with our recent CEO transition we are withdrawing our prior full year guidance and temporarily suspending our practice of providing forward guidance on most metrics.
Speaker Change: That said our teams are diligently working to assess opportunities for improvement within the assortment and we have taken swift actions to reduce inventory investments and floor sets beginning in the third quarter to better align with current demand trends.
Speaker Change: Quarter to date through May total company sales are down mid single digits compared to the prior year period, while comparisons get easier as we move forward should sales continue to decline at this level, we would expect to see significant SG&A deleverage as well as further pressure on gross margin driven by actions taken to ensure.
Mark Webb: While comparisons get easier as we move forward, should sales continue to decline at this level, we would expect to see significant SG&AD leverage as well as further pressure on gross margin driven by actions taken to ensure the movement of inventory in sales. With respect to tariffs, in developing our financial models for the rest of the year, we have assumed tariffs will remain at 10% on all countries and 30% on China. While we expect to begin to see incremental product costs beginning toward the end of the second quarter from tariffs currently in place, we expect to mitigate most of these costs through a combination of vendor negotiations, on-order adjustments, and strategic price increases on select items in the assortment.
Speaker Change: The movement of inventory in season.
Speaker Change: With respect to tariffs and developing our financial models for the rest of the year. We have assumed tariffs will remain at 10% on all countries and 30% on China.
Speaker Change: While we expect to begin to see incremental product costs beginning towards the end of the second quarter from tariffs currently in place we expect to mitigate most of these costs through a combination of vendor negotiations on order adjustments and strategic price increases on select items in the assortment.
Mark Webb: However, any increases to current rates will result in additional margin headwinds for the year.
Speaker Change: However, any increases to current rates will result in additional margin headwinds for the year.
Mark Webb: We remain committed to operating the business with discipline. Tightly managing inventory buys and clearing goods as needed in season and our strong balance sheet and ongoing cash generation enable us to continue to support our strategic investments in marketing, new stores, and in systems capabilities such as Shiproom Store, which is in pilot now and will ramp through the back half of 2025. We are maintaining our current run rate marketing spend in support of the customer file, but are reviewing the mix and creative to ensure maximum impact and that's the broader market back We are investing in new stores but are evaluating non-essential capital spend.
Speaker Change: We remain committed to operating the business with discipline tightly managing inventory buys and clearing goods as needed in season, and our strong balance sheet and ongoing cash generation enable us to continue to support our strategic investments in marketing new stores and in systems capabilities, such as ship from store.
Speaker Change: <unk>, which is in pilot now and will ramp through the back half of 2025.
Speaker Change: We are maintaining our current run rate marketing spend in support of the customer file but are reviewing the mix and creative to ensure maximum impact amidst the broader market backdrop.
Speaker Change: We are investing in new stores, but are evaluating non essential capital spend we now expect to spend between 20 and $25 million during the fiscal year compared to prior guide of approximately $25 million.
Mark Webb: We now expect to spend between $20 and $25 million during the fiscal year compared to prior guide of approximately $25 million. We are now expecting to open between one and five net new stores this year versus prior guided range of net five to 10 new stores, as some new deals have pushed into 2026.
Speaker Change: We are now expecting to open between one and five net new stores this year versus prior guided range of net five to 10, new stores has some new deals have pushed into 2026.
Mark Webb: And lastly, we remain committed to executing on our total shareholder return strategies. As announced on June 3rd, we are maintaining our quarterly dividend of $0.08 per share payable on July 9th to shareholders of record on June 25th, and we will continue to opportunistically repurchase shares that will do so judiciously until trend visibility improves. The considerable actions we have taken the past few years to invest in our systems and strengthen our balance sheet will support us going forward. Our new OMS system is up and running, and teams are making progress on the next objective, which is to ramp the ship-from-store capability for benefit in the second half of this year.
Speaker Change: And lastly, we remain committed to executing on our total shareholder return strategies as announced on June 3rd we are maintaining our quarterly dividend of <unk> <unk> per share payable on July 19 to shareholders of record on June 25, and we will continue to opportunistically repurchase shares that we will do so.
Speaker Change: <unk> traditionally until trend visibility improves.
Speaker Change: The considerable actions we have taken in the past few years to invest in our systems and strengthen our balance sheet will support us going forward, our new Oss system is up and running and teams are making progress on the next objective, which is to ramp the ship from store capability for benefit in the second half of this year.
Mark Webb: With funded debt of $74 million and $31 million in cash, we have the necessary flexibility to navigate through this environment and enable us to be better positioned to capitalize on improvement when trends normalize for our customers. Despite near-term headwinds, we are fortunate to have a strong brand and a very attractive customer. Our teams have managed through challenges such as this before, and I look forward to working with Mary Ellen as she continues to assess and develop plans to position us for long-term success.
Speaker Change: With funded debt of $74 million and $31 million in cash we have the necessary flexibility to navigate through this environment and enable us to be better positioned to capitalize on improvement when trends normalize for our customer.
Speaker Change: Despite near term headwinds, we are fortunate to have a strong brand and a very attractive customer. Our teams have managed through challenges such as this before and I look forward to working with Mary Ellen as she continues to assess and develop plans to position us for long term success. Thank.
Mark Webb: Thank you.
Operator: I'll now hand it back to the operator. Thank you.
Speaker Change: Thank you I'll now hand, it back to the operator for questions.
Speaker Change: Thank you we will now begin the question and answer session.
Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. And if you'd like to withdraw your question, again, press star 1.
Speaker Change: To ask a question. Please press star one on your telephone keypad to raise your hand and join the queue and if you'd like to withdraw your question again Press Star. One. Your first question comes from Dana Telsey with Telsey Group. Please go ahead.
Dana Telsey: Your first question comes from Dana Telsey with Telsey Group. Please go ahead. Hi.
Dana Telsey: Good morning, everyone, and welcome, Mary Ellen, to J.Jill. As you, coming from Jay McLaughlin and Ralph Lawrence, you've had experience with this customer. Given the current macro environment, what did you put in place at Jay McLaughlin, for example, during CARES, and what do you see the opportunity for J.Jill? And then lastly, you mentioned certain underperforming parts of the assortment.
Dana Telsey: Hi, Good morning, everyone and welcome Mary Ellen to J Jill.
Speaker Change: Coming from J, Mclaughlin, and Ralph Lauren Nuc had experience with this customer given.
Dana Telsey: Given the current macro environment, what did you put in place at J Mclaughlin for example, during cash and what do you see the opportunity for J Jill and then lastly, you mentioned certain underperforming parts of the assortment what are those and how do you see the merchandise mix evolving through the upcoming holiday season.
Dana Telsey: What are those, and how do you see the merchandise mix evolving for the upcoming holiday season?
Dana Telsey: And lastly, Mark, on the OMS… Cutover that you had. Are there any other costs that go into this second or third quarter that we should be mindful of? And what magnitude of price increases are you talking and how promotional is it compared to where it could be? Thank you.
Dana Telsey: And lastly, mark on the Oems.
Dana Telsey: Cutover that you had are there any other cost that go into the second or third quarter that we should be mindful of and what magnitude of price increases are you talking and how promotional is it compared to where it could be thank you.
Mark Webb: Hi, Dana, it's Mark. I'm going to jump in if I can just on the tariff conversation. So we were speaking directly about J.Jill and what we've done around the tariff exposure. We mentioned in my remarks that the overall tariff assumption we're going with right now, though, as everybody knows, the final trade negotiations are not yet landed, and it's unclear when they will be or what potential news flow will be until they are. But we've assumed 10 percent. We've kind of assumed status quo here in the pods, 10 percent everywhere except China and 30 percent on China.
Dana Telsey: Hi, Dana, it's Mark I'm going to I'm going to jump in if I can just on the on the tariff conversation. So we're speaking directly about J.
Dana Telsey: J, Jill and what we've done.
Dana Telsey: Around.
Dana Telsey: Exposure, we mentioned in my remarks that the.
Dana Telsey: Overall tariffs assumption, we're going with right now, though as everybody knows the final trade negotiations are not yet landed and it's unclear when they will be or what potential news flow will be until they are but we've assumed 10% we've kind of assumed status quo here in the past 10%.
Dana Telsey: Everywhere, except China, and 30% on China as we've discussed previously we've made as a company great strides getting our China sourcing down below 5% that continues to be an opportunity for us and we've been.
Mark Webb: As we've discussed previously, we've made as a company great strides getting our China sourcing down below 5 percent. That continues to be an opportunity for us. And we've been looking at one of our strategies around mitigating tariffs is on order adjustments, which would include country migration and includes adjustments in quantities. We mentioned vendor negotiations. We have a very strong, longstanding relationship with our vendor community and our agents. So we're working on those levers and then very select and strategic price increases that the team has gone through and believe there's opportunity to price up strategically within the assortment.
Dana Telsey: Looking at one of our strategies around mitigating tariffs as an order adjustments, which would include country migration and that includes adjustments in quantities. We mentioned vendor negotiations we have a very strong.
Dana Telsey: Long standing relationship with our vendor community and our agents working on on those levers and then very selective strategic price increases that the team has gone through and believe there is opportunity to price up strategically within the assortment all of those things combined for US we believe at the current status quo.
Mark Webb: All of those things combined for us, we believe at the current status quo, while it does represent a headwind, just given that it's an incremental cost, are manageable within our current environment with respect to tariffs. You mentioned the assortment. I would say there's opportunity in the assortment around, I think, the teams, and I'll let Mary Ellen jump in on this, but around some newness, particularly in times like this, where the consumer is a little bit more uncertain. And then we did have some successes in the assortment as well.
Dana Telsey: While it does represent a headwind just given that it's an incremental costs are manageable within our current environment with respect to tariffs.
Speaker Change: You mentioned the assortment.
Speaker Change: I would say there is opportunity in the assortment around I think the teams I'll, let Mary Ellen jump in on this but around some newness, particularly in times like this where the consumer it is a little bit more uncertain.
Speaker Change: And then we did have some successes in the assortment as well I know this is an area that Mary Ellen as diving into with the teams.
Mary Ellen Coyne: I know this is an area that Mary Ellen is diving into with.
Mary Ellen Coyne: Good morning, Dana. It's nice to meet you. I'll start with your first question, which was around customer. And yes, in my experience, both my time at Ralph Lauren and at Jay McLaughlin, what I have learned is that the most important thing you can do is to create meaningful relationships with your customer. And J.Jill has done that in spades. This is a very valued segment. It is traditionally an underserved segment. And so we're very excited that we have her here. And it's a customer that I'm very familiar with. So thrilled about that. What we know about this customer, in addition, is when there are times of uncertainty, she pulls back.
Mary Ellen: Thanks, Mark Good morning, Dana it's nice to meet you.
Speaker Change: I'll start with your first question, which was around customer and yes in my experience. Both my time at Ralph Lauren ended J Mclaughlin.
Speaker Change: What I have learned is that the most important thing you can do is to create meaningful relationships with your customer.
Speaker Change: Hey, Joe has done that in Spain.
Speaker Change: This is a very valued segment. It is traditionally an underserved segment.
Speaker Change: And so we're very excited that we.
Speaker Change: We have her here.
Speaker Change: And it's a customer that I'm very familiar with so thrilled about that what we know about this customer. In addition is.
Speaker Change: There are times of uncertainty she pulls back she is a smart engaged consumer one who is more discerning with spend and that is what we saw and to Mark's comment.
Mary Ellen Coyne: She is a smart, engaged consumer, one who is more discerning with her spend. And that is what we saw. And to Mark's comment.
Mary Ellen Coyne: You know, we did not have enough newness in the assortment, and that will be a focus as we move forward. In my experience, this customer always returns and returns to the brands that she knows and that she trusts, and we are confident that that will happen here. With regard to your question about the holiday season, our product line is bought through the end of the year. But that being said, there is always more that we can do to win share of wallet. And that is my immediate focus with the team right now. We can impact presentations in store and online.
Speaker Change: We did not have enough newness in the assortment and that will be a focus as we move forward.
Speaker Change: In my experience this customer always returns and returns to the brands that she knows and that seed crop and we are confident that that will happen here.
Speaker Change: With regard to your question about the holiday season.
Speaker Change: Our product line has bought through the end of the year, but that being said there is always more that we can do to win share of wallet and that is.
Speaker Change: My immediate focus with the team right now.
Speaker Change: We can impact presentations in store and online we can impact marketing efforts, we can impact the way that we show up for her as we work through the balance of the year.
Mary Ellen Coyne: We can impact marketing efforts. We can impact the way that we show up for her as we work through the balance of the year.
Mark Webb: Great, thanks, and I'll just lastly, Dana, you mentioned OMS, thanks for that question. First of all, I would say we're extremely excited to have our new OMS system in and stable, and we mentioned that there was slightly more negative impact in the cutover than we had anticipated. We had provided guidance that we expected, a million and a half, we came in at two. I'll tell you the extra 500 and 2 million in total for a project as far-reaching and important as OMS in the grand scheme of things is a pretty good cutover for us from our perspective.
Speaker Change: Great. Thanks, and just lastly.
Speaker Change: Danny you mentioned Oems.
Speaker Change: Thanks for that question first of all I would say, we're extremely excited to have our new Oss system in and stable and we.
Speaker Change: We mentioned that there was slightly more.
Speaker Change: Negative impact in the cutover than we had anticipated we had provided.
Speaker Change: Guidance that we expected 1 billion and a half we came in at two I'll tell you the extra $502 million in total for a project as far reaching.
Speaker Change: An important as LMS in the Grand scheme of things is pretty good.
Speaker Change: Cutover for us from our perspective, the teams have worked really hard in what we call hyper care, which are the weeks following the cutover to address some unforeseen issues that werent caught in testing.
Mark Webb: The teams have worked really hard in what we call hypercare, which are the weeks following the cutover to address some unforeseen issues that weren't caught in testing, the million and a half we guided to we expected, and the 500 that we didn't really came out of some customer-facing issues, some glitches with checkout on a website, some glitches with stored credit cards on a website that were quickly diagnosed, addressed, and fixed, so are now behind us. We'll continue to learn the new systems, and as we continue to get every day behind us with the new system, we're excited about it.
Speaker Change: <unk> guided to we expected in the 500 that we didn't really came out of some customer facing issues. Some glitches with checkout on our website. Some glitches with store credit cards on our web site that were quickly diagnosed addressed and fixed so are now behind us we will continue to learn the new systems and as we continue.
Speaker Change: Get every day behind us with the new system, but are excited about it. It was a very large project the cutover went very well.
Mark Webb: It was a very large project. The cutover went very well. A very large team was dedicated to it, and they did a fantastic job of getting it to where we are today.
Speaker Change: Very large team was dedicated to it and they did a fantastic job of getting it to where we are today and at the same time, we're excited that we're bringing up ship from store, which we've talked before was.
Mark Webb: At the same time, we're excited that we're bringing up Shiproom Store, which we talked before was the primary first Omni capability that we were going to deploy. We're in pilot. We're in about 10% of the fleet. We're learning. We're fine-tuning, and we'll be ramping that through the back half of the year, which should, as we previously discussed, provide value as we ramp it.
Speaker Change: Primary first omni capability that we were going to deploy we're in pilot run about 10% of the fleet. We're learning we're fine tuning and we'll be ramping that through the back half of the year, which should as we can.
Speaker Change: Previously discussed provide value.
Speaker Change: As we ramp it.
Speaker Change: Okay.
Jonna Kim: Your next question comes from Jonna Kim with TD Cowan. Please go ahead. Thank you for taking my question.
Speaker Change: Your next question comes from John Kim with TD Cowen. Please go ahead.
John Kim: Thank you for taking my question just curious on one unit.
Jonna Kim: I'm just curious on the MUNIS comment, how are you thinking about rolling out MUNIS in the second half and juggling that with also how the tariff dynamics are and how do you feel about the inventory excursion in the fall and also the holiday season? I would love any color around ticket and traffic during the quarter if you can provide any details. Thank you very much. Great. Thank you for the question.
Speaker Change: How are you thinking about rolling out.
Speaker Change: Okay.
Speaker Change: Coupling that with alcohol.
Speaker Change: California in fall and how do you feel about the inventory position in that in the.
Speaker Change: Fall and after the holiday season.
Speaker Change: Would love any color around ticket and traffic during the quarter.
Speaker Change: You can provide any details thank you very much.
Speaker Change: Great. Thank you for the question I'll start with the question around noon again.
Mark Webb: I'll start with the question around newness. Again, as I had just said, the line is bought through the end of the year. That being said, we're able to make small adjustments, but really the impact of that will really come as we head into 2026. And John, I would add, and I apologize if we missed some of your questions. It was a little hard to hear.
Speaker Change: As I had just said the line is.
Speaker Change: Bought through the ended the year.
Speaker Change: That being said, we're able to make small adjustments, but really the impact of that.
Speaker Change: The impact of that will really come as we head into 2026.
Speaker Change: And John I would I would add and I apologize if we missed some of your questions. There was a little hard to hear please follow up with US if you can and operator, if you can allow that I heard the question on inventory positioning going into fall and holiday one of one of the.
Mark Webb: Please follow up with us if you can, and operator, if you could allow that. I heard the question on inventory positioning going into fall and holiday. One of the immediate things or the nearer term things that we can impact are orders that are coming. So we did take our Q3, which is really that fall and forward buys down more in line with the current demand trends that we've seen, which is sort of the first part of that. We exited Q1 with normalized inventories. Remember, our balance sheet inventories reflect about an extra week. of InTransits and OnHands now related to the extra week we put into the supply chain last year when the Red Sea issues began.
Speaker Change: Immediate things are the nearer term things that we can impact or orders that are coming. So we did take our Q3, which is really thats fall in forward buys down more in line with the current demand trends that we've seen which is sort of the first part of that we exited Q1 with normalized inventories.
Speaker Change: Remember, our our balance sheet inventories reflect about an extra week.
Speaker Change: In transit and on hands now related to the extra week, we put into the supply chain last year when the Red Sea issues began we'll lap those at the end of Q2, but we're still showing that in our balance sheet. So when we normalize that out we're up about 5%, which.
Mark Webb: We'll lap those at the end of Q2, but we're still showing that in our balance sheet. So when we normalize that out, we're up about 5%, which is, you know, mostly, and we have made some investments in some key basic items, some bottoms that actually did well during the quarter.
Speaker Change: Is mostly and we have made some investments in some key basic items, some bottoms that actually did well during the quarter, but once you get into Q2, having inventories up five we will do what's necessary to clear our inventories given that we are going to be entering summer sales periods in July and want to exit Q2 clean with those new buyers.
Mark Webb: But as you get into Q2, having inventories up 5, we will do what's necessary to clear our inventories, given that we're going to be entering summer sale periods in July and want to exit Q2 clean with those new buys bought more appropriately with demand.
Speaker Change: Bought more appropriately with demand.
Mark Webb: And this is, yeah, the second question just was additional color on ticket versus traffic during the quarter. and Opportunities to Drive. More traffic to the store as well. Thank you.
Speaker Change: And then the second question just with additional color on ticket versus traffic during the quarter.
Speaker Change: An opportunity to drive.
Speaker Change: More traffic to the store as well thank you.
Mark Webb: Yeah, so through the quarter, and Q1 for us was choppy, it had weather, which we had spoken about on our last call in February, which impacted traffic in stores, we had the OMS cutover, which impacted direct in, in March, and that primarily is a conversion type impact, just a little bit of traffic, because we brought the site down to cut over. And then really, when April and some of the global trade policy announcements kicked off, we saw overall, a pullback in demand, and that was traffic, it was also a migration, which we tend to see a migration to markdown selling and promo selling, which impacted AURs, maybe even a little more than traffic.
Speaker Change: Yes, so through the quarter in Q1 for US was choppy it was weather, which we had spoken about on our last call in February which impacted traffic in stores, we have the Oems cutover, which impacted direct.
Speaker Change: <unk>.
Speaker Change: In March and that primarily is a conversion type impact.
Speaker Change: Impact just in a little bit of traffic because we brought the site down to cutover.
Speaker Change: And then really when April and some of the global trade policy announcements kicked off we saw overall.
Speaker Change: A pullback in demand and that was traffic. It was also migrate.
Speaker Change: Migration, which we tend to see a migration to markdown selling and promo selling which impacted AUR is maybe even a little more than traffic.
Mark Webb: The opportunities, we mentioned that we remain committed to and are fortunate to have the financial model of the business and a strong balance sheet to be able to maintain our strategic investments. One of those in a primary area is marketing, and also stores and systems, and the marketing effort will look at mix and creative just in light of the current state of the consumer. And that's as much about near term, as it is really about supporting the file for the long term, which we're still very excited about when the customer does come back, and we fully expect her to, that we can get back to driving profit.
Speaker Change: The opportunities we mentioned that we remain committed to and are fortunate to have the financial.
Speaker Change: Model of the business and a strong balance sheet to be able to maintain our strategic investments one of those in a primary area is marketing and also stores in systems and the marketing effort will look at mix and creative just in light of the current state of the consumer and.
Speaker Change: It's as much about near term as it is really about supporting the file for the long term, which we're still very excited about when the customer does come back and we fully expect or two that we can get back to driving profitable growth.
Mark Webb: Credit. Thank you so much.
Speaker Change: Got it thank you so much.
Speaker Change: Yes.
Corey Tarlowe: Your next question comes from Corey Tarlowe with Jeffreys. Please go ahead. Great, thanks.
Speaker Change: Your next question comes from Cory <unk> with Jefferies. Please go ahead.
Cory: Great. Thanks.
Corey Tarlowe: Mary Ellen, could you maybe talk a little bit about what drew you to J.Jill, some of the characteristics that you see of strength that you think are likely to continue going forward for the business? Any categories where maybe you see Opportunities or Green Shoe.
Speaker Change: Mary Ellen could you maybe talk a little bit about.
Speaker Change: What drew you to J Jill characteristics.
Speaker Change: Characteristics that you see.
Speaker Change: The strength that you think are likely to continue.
Speaker Change: Going forward for the Boswell any categories, where maybe you see some.
Speaker Change: Opportunities or green shoots.
Mary Ellen Coyne: And then, Mark, just on the quarter-to-date momentum, is there any way to put into context Thanks so much. Sure. Thanks for the question. You know, for me, as I looked at J.Jill, the opportunity to build upon this brand's strong history while driving future growth was irresistible for me, right? This is what I love to do is scale profitable businesses. In my past experiences, I've done that through multi-channel expansion. You know, I'm a big believer in stores, but the balance here of the e-commerce business to the brick and mortar business is really healthy and both able to scale.
Speaker Change: And then Mark just on the quarter to date momentum is there any way to put into context.
Speaker Change:
Speaker Change: Kind of some of the drivers or maybe how that compared relative to what you saw in the first quarter. Thanks, so much.
Speaker Change: Sure. Thanks for the question.
Speaker Change: For me as I looked at J, Jill the opportunity to build upon this brand's strong history, while driving future growth was irresistible for me right. This is what I would love to do is scale profitable businesses in my past experiences I have done that through.
Speaker Change: Multichannel expansion I'm, a big believer in stores, but the balance here.
Speaker Change: The e-commerce business to the brick and mortar business is really healthy and both able to scale.
Mary Ellen Coyne: But I've also elevated product assortments, introduced new categories, and I see tremendous potential to do all of those things here, continuing to serve the very loyal customer that we have and to acquire new ones.
Speaker Change: But I've also elevated product assortments introduce new categories.
Speaker Change: I see tremendous potential for could you all of those things here.
Speaker Change: Continuing to serve the very loyal customer that we have and to acquire new ones.
Mark Webb: And Corey, I would put context around the Q1 performance into the into the May trend in this manner. The quarter I mentioned before was choppy. So we had, you know, weather in February and the OMS cut over in March. It really was that slowdown once we were through those issues in April that seemed to very much coincide with the uncertainty that started to swirl out in the global trade arena. And so that trend, we honestly didn't anticipate. And the May comment with down mid single digits is indicating that some of that trend in April continued, as I mentioned in my remarks.
Corey: And Corey I would.
Corey: Put context around the Q1 performance.
Corey: Into the into the May trend in this manner.
Corey: Third quarter I mentioned before was choppy. So we had weather in February and the OLS cutover in March it really was that slowdown once we work through those issues in April that seems very much coincide with the uncertainty that starting to swirl out in the.
Corey: The global trade arena, and so that trend we.
Corey: Honestly didn't anticipate and May comment was down mid single digits is indicating that some of that trend in April continued as I mentioned in my remarks.
Mark Webb: The uncertainty that is out there is, and as Mary Ellen mentioned, with respect to our customer, just creates, in our world, uncertainty in the planning and is a primary reason why we are temporarily suspending our practice of providing guidance.
Speaker Change: The uncertainty that is out there as an as Mary Ellen mentioned with respect to our customer.
Speaker Change: Just creates in our world uncertainty in the planning and is the primary reason why we are temporarily suspending our practice of providing guidance, but that also coupled with having Mary Ellen as new CEO and making sure. She has the time to assess and develop plans on the business, which we would plan to come back and share.
Mark Webb: But that also coupled with having Mary Ellen as new CEO and making sure she has the time to assess and develop plans on the business, which we would plan to come back and share more on in the Q2 call. Great, thank you so much.
Speaker Change: More on in the Q2 call in September.
Speaker Change: Great. Thank you so much impossible.
Speaker Change: Thanks.
Marni Shapiro: Your next question comes from Marni Shapiro from The Retail Tracker. Please go ahead. Hey guys and welcome, Mary Ellen. I feel terrible that you have to start and then tariffs happen. Not a fun way to start, but welcome aboard. We're excited to have you.
Speaker Change: Your next question comes from Marni Shapiro from the retail tracker. Please go ahead.
Speaker Change: Hey, guys welcome Mary Ellen we feel terrible that you have to start and then tariffs happen not a front weighted.
Speaker Change: Welcome aboard we're excited to have you.
Marni Shapiro: I'm just curious, just to follow up on the conversation about trends and what's happening out there. You know, May was not a great weather month in the Midwest and the Northeast as well. The stock market was all over the place. I know your customer pays attention to those kinds of things. Have you seen any improvements in areas where the weather was more seasonal? Were the trends different in those areas or any improvement as we got towards, you know, a little bit away from that noise or was May down across the board?
Speaker Change: I'm just curious just a thought.
Speaker Change: Just to follow up on the conversation about trends and what's happening out there.
Speaker Change: May was not a great weather month in the Midwest and the northeast as well stock market was.
Speaker Change: All over the place I know your customer pays attention to those kinds of things have you seen any improvement in areas, where the weather was more seasonal weather trends different in those areas or any improvement as we got towards.
Speaker Change: A little bit away from that noise, our was may down across the board.
Mark Webb: And then just one other quick question. I know you keep talking about ramping up ship from stores. It's very exciting, but will you be careful, I guess, about split shipments, which other retailers, you know, have called out as being very costly and prohibitive? Is that something that's already on your mind?
Speaker Change: And then just one other quick question I know you keep talking about ramping up ship from stores, it's very exciting, but will you be careful I guess about split shipments, which other retailers have.
Speaker Change: <unk> called out as being very costly prohibitive.
Speaker Change: Something that's already on your mind.
Mark Webb: Hey Marni, it's Mark. Thanks for the questions. I'll start with the second one. Ship from store, shipping complete is a big objective. So we're well aware of the shipping costs per unit, etc. And that is, as we're rolling out and piloting and ramping, one of those knobs you can turn and rules you can engage to make sure you're managing it appropriately. So very much aware of that. Very excited about the opportunity to fulfill what was previously unfulfillable demand within our business. So but applying learnings as we do so.
Speaker Change: Hey, Marni, it's mark Thanks for the questions I'll start with the second one.
Speaker Change: Chip from store shipping complete is a big objective so we're well aware.
Speaker Change: Shipping cost per unit et cetera, and that is as we're rolling out and piloting and ramping.
Speaker Change: One of those knobs, you can turn an <unk> rule as you can engage to make sure you're managing it appropriately so very much aware of that.
Speaker Change: Very excited about the opportunity to fulfill what was previously unfulfilled demand within our business, so but applying learnings as we do so and then you mentioned the weather honestly whether as is.
Mark Webb: And then you mentioned the weather. Honestly, weather is, you know, It's becoming the new norm, I guess. I would say that across the country, there hasn't really been any major impacts that we would say. February was widespread, which is why we called it out. And I think at the time we mentioned it was everywhere except for the Southwest and Colorado, which seemed to be the only bubbles of protected from the weather areas. The weather in May, no big call-outs. We've also been tracking from the political landscape, red states, blue states, we don't see any real major call-outs across any of those differences as we look at them.
Speaker Change: It is becoming the new norm I guess I would say that across the country there hasnt really been.
Speaker Change: Any major.
Speaker Change: Impacts that we would say February was widespread which is why we called it out and I think at the time, we mentioned it was everywhere, except for the southwest and Colorado, which seem to be the only bubbles of this has been from the weather areas.
Speaker Change: The weather in May no big Callouts, we've also been tracking from.
Speaker Change: From the political landscape Red State Blue State, we don't see any major call outs across any of those differences as we look at them, we see general pullback in our.
Mark Webb: We see general pullback in our customer segment when things like the stock market volatility increases and uncertainty and worry tend to enter the mindset. So that's kind of how we're looking at things right now and a little bit of that rationale again behind the decision to suspend our guidance for right now. But comfortable that we've got the strength to manage through it.
Speaker Change: Our customer segment, when things like the stock market volatility increases and uncertainty and worrying tend to enter the mindset. So that's kind of how we're looking at things right now.
Speaker Change: And a little bit of that.
Speaker Change: That rationale adjourn behind the <unk>.
Speaker Change: The decision to suspend our guidance for right now but comparable.
Marty: <unk> managed through it thanks Marty.
Mark Webb: Thanks, Barney. Thank you, guys.
Marty: Thank you guys.
Janine Stichter: Your next question comes from Janine Stichter with BTIG. Please go ahead.
Marty: Your next question comes from Jane <unk> with BP.
Marty: Please go ahead.
Janine Stichter: Good morning and welcome, Mary Ellen. I want to get your thoughts on these store openings. I saw you lowered the number this year. It seems mostly due to timing, but is there any change in the view for plans to net add stores over the next few years? And then just curious how the newer stores are performing. Thanks, Janine. Hi, Janine. I'll take that. So the question on new stores, we ended up, as we mentioned last quarter, we had a couple of store closures that pushed from last year into this year, which was part of the closure activity in Q1.
Jane: Good morning, and welcome Mary Ellen.
Speaker Change: I wanted to get your thoughts on new store openings Thats. All you lowered the number this year. It seems mostly due to timing, but is there any change in the view for plants in that over the next two years and then just curious how the newer stores are performing.
Speaker Change: Thanks, Jeanine, Hi, Julien I'll take that.
Marty: Question on new stores.
Marty: We ended up as we mentioned last quarter, we had a couple of store closures that pushed from last year into this year, which was part of the closure activity in Q1 overall the store the portfolio of stores. We've opened we've opened nine in the last little over a year are performing in line with where we would expect they are.
Mark Webb: Overall, the portfolio of stores that we've opened, we've opened nine in the last little over a year, are performing in line with where we would expect. They are subject to the macro as well, so we're watching that. A couple of learnings in smaller markets where it's a single-store market that the ramp may be a little longer than we had expected, but working on that, part of the marketing investments will be to support those markets. But overall, remain very excited about the store growth opportunity. The store growth guidance for this year really represents available spaces, and we will not compromise on the quality of the space.
Marty: Subject to the macro as well so we're watching that a couple of learnings in smaller markets, where it's a single store.
Marty: <unk> that the ramp maybe a little longer than we had expected, but but working on that part of the marketing investments will be to support those markets.
Speaker Change: But overall very remain very excited about the store growth opportunity.
Speaker Change: The store growth guidance for this year really represents available spaces, and we will not compromise on the quality of the space, We talked a lot about the economics required we're getting visibility too.
Mark Webb: We talked a lot about the economics required. We're getting visibility to a void list and a potential opening list that we're very comfortable with. The guide this year was more about some slippage that has already occurred with the available spaces we're looking at that are likely to push into 2026. And then we're also, in a couple of areas, working with some uncertainties around planning commissions and FEMA and whether or not the centers that we're in clear those hurdles, and then we can work through them. So that's primarily why we guided the stores down a little bit.
Speaker Change: Boyd list and a potential opening list that we're very comfortable with the guide. This year was more about some slippage that has already occurred with the available spaces. We're looking at that are likely to push into 2026 and then we're also in a couple of areas.
Speaker Change: Working with some uncertainties around planning commissions, and FEMA and whether or not the centers that we're in clear those hurdles and then we can.
Speaker Change: Worked through them. So that's primarily why we guided the stores down a little bit.
Mary Ellen Coyne: We still feel comfortable in the 50-store opportunity by the end of 2029, and we'll likely speak more about shorter-term objectives at a later point.
Speaker Change: We still feel comfortable in that 50 store opportunity by the end of 2029.
Speaker Change: And will likely speak more about shortly.
Speaker Change: Short term objectives at a later point.
Mary Ellen Coyne: And I'll just add to that, that, you know, as I said earlier, J.Jill is in an enviable position, having a balanced mix with room to scale both channels, you know, in-store and online, but I feel very strongly about brick-and-mortar retail. I think stores are the best way you can tell your brand story and build authentic customer connections and really grow brand awareness. So we're excited about the growth that's planned into the model as we move forward. Great.
Speaker Change: And I'll just add to that.
Speaker Change: As I said earlier in J Jill is in an enviable position, having a balanced mix with room to scale both channels in store and online, but I feel very strongly about brick and mortar retail stores are the best way you can tell your brand story and build authentic customer connections.
Speaker Change: And really grow brand awareness.
Speaker Change: So we're excited about the growth that's planned into the model as we move forward.
Mary Ellen Coyne: And then just one more. I think Mary Ellen, you alluded to some white space or potential new categories. Anything more you can share there? Is that something we'll hear more about in September? We are working on that right now and we will be sharing all of that in September. Sounds good. Thank you.
Speaker Change: Great and then just one more I think Mary Ellen you alluded to some white space or potential new categories anything more you can share there or is that something you will hear more about in September.
Speaker Change: We are working on that right now and we won't be sharing all of that in September.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Mary Ellen Coyne: So that concludes our question and answer session, and I will now turn the conference back over to Mary Ellen Coyne for closing comments. Thank you. And thank you all for joining us. As I said earlier, I am energized by the opportunities ahead. While we are navigating a challenging backdrop, we know there is always more that we can do to win our share of wallet. And that is where we are focused. I look forward to sharing more on our plans and my overall assessment of the business on our next earnings call. Thank you.
Speaker Change: So that concludes our question and answer session and I will now turn the conference back over to Mary Ellen Cohen for closing comments.
Speaker Change: Thank you and thank you all for joining us as I said earlier I am energized by the opportunities ahead.
Speaker Change: While we are navigating a challenging backdrop. We know there is always more than we can do to win our share of wallet and that is where we're focused I look forward to sharing more on our plans and my overall assessment of the business on our next earnings call. Thank you.
Operator: Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation and you may now disconnect.
Speaker Change: Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation and you may now disconnect.
Operator: Please wait, the conference will begin shortly.
Speaker Change: Please wait the conference will begin shortly.
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