Why Is JILL Stock Rising Today?

• J.Jill’s Q2 net sales rose 0.5% to $154.8 million, while comparable sales also increased 0.5%.
• Adjusted diluted EPS was $1.24, including the benefit of net tariff refunds, versus a $0.57 consensus estimate.
• J.Jill raised its FY26 outlook, now expecting flat to 2% net sales growth and $75 million to $80 million of adjusted EBITDA.

J.Jill Inc. (JILL) stock surged nearly 11% in Wednesday’s premarket, on track to post its best single-day gain since May 2024, after the apparel retailer reported better-than-expected second-quarter results and raised its fiscal 2026 outlook. 

The company reported second-quarter net sales of $154.8 million, up 0.5% from $154.0 million a year earlier and compared to analysts’ expectation of $151.26 million, according to Fiscal.ai consensus data. Adjusted earnings per share (EPS) stood at $1.24 compared to an estimated $0.57.

Total company comparable sales, which include comparable-store and direct-to-consumer sales, also increased by 0.5%.

JILL’s Comparable Sales Return To Growth

J.Jill’s Direct-to-consumer net sales increased 1.9% year over year and accounted for 47.1% of total sales during the quarter. The firm ended the period with 255 stores, compared with 247 a year earlier. CEO Mary Ellen Coyne said sales exceeded the company's expectations, while underlying profitability came in at the high end of its outlook before the benefit from tariff refunds.

Gross profit increased to $119.0 million from $105.4 million, with gross margin rising to 76.8% from 68.4%. However, the quarter included $13.3 million of net tariff refunds; excluding that benefit, gross margin was 68.3%.

Tariff Refunds Lift Q2 Profitability

The company's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $32.8 million from $25.6 million. Both figures included the benefit from net tariff refunds. 

Excluding net tariff refunds, deployment of those refunds toward strategic initiatives and elevated fuel costs, adjusted EBITDA was $20.1 million.

J.Jill Raises Fiscal 2026 Outlook

J.Jill raised its full-year outlook and now expects net sales to range from flat to up 2% versus fiscal 2025 and comparable sales to range from down 1% to up 1%. The retailer expects full-year adjusted EBITDA of $75 million to $80 million, free cash flow of approximately $40 million, and a 100- to 150-basis-point increase in gross margin. 

For the third quarter, the company expects net sales to increase 3% to 5%, comparable sales to rise 1% to 3%, and adjusted EBITDA of $20 million to $22 million.

What Retail Investors Think About JILL?

Retail sentiment on Stocktwits surrounding JILL stock turned ‘extremely bullish’ from 'bullish' a day earlier amid extremely high message volume. 

So far this year, JILL stock has surged about 44%, outperforming the benchmark S&P 500, which has risen 11.9% over the same period.

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