J. Jill, Inc. shares are trading lower in the premarket session on Wednesday after the company missed first-quarter revenue estimates, posted weaker margins, and withdrew its FY25 guidance.

The apparel, footwear, and accessories company reported adjusted earnings per share of 88 cents, beating the analyst consensus estimate of 86 cents. Quarterly revenues of $153.62 million (down 4.9% year over year) missed the Street view of $158.70 million.

The first quarter of fiscal 2025 included an approximately $2 million headwind related to the OMS cutover.

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Total company comparable sales, which include comparable store and direct-to-consumer sales, decreased by 5.7% in the quarter under review.

Gross profit was $110.4 million, down from $117.7 million in the year-ago period. Gross margin was 71.8%, lower than 72.9% year over year.

Adjusted Income from Operations was $21.5 million, lower than $29.6 million a year ago. Adjusted EBITDA was $27.3 million in the quarter, down from $35.6 million in Q1 FY24, the margin declined to 17.8% from 22.1%.

The company closed three stores in the quarter under review, ending the quarter with 249 stores, up from 244 in the year-ago period.

The company ended the first quarter with a cash balance of $31.2 million and an inventory of $60.6 million.

On June 3, 2025, the board declared a cash dividend of $0.08 per share, payable on July 9.

Outlook: The company is withdrawing its prior guidance for fiscal 2025 and is temporarily suspending its practice of providing forward guidance. This is due to the “increased uncertainty” in the macroeconomic environment and the recent leadership transition.

For FY25, the company sees total capital expenditures of $20.0 million to $25.0 million, with new net store growth of 1 to 5 new stores.

Price Action: JILL shares are trading lower by 12.7% premarket to $14.70 at last check Wednesday.

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