v3.26.1
Revenues
3 Months Ended
May 02, 2026
Revenue from Contract with Customer [Abstract]  
Revenues

3. Revenues

Disaggregation of Revenue

Net sales consist primarily of revenues, net of merchandise returns and discounts, generated from the sale of apparel and accessory merchandise through our retail stores (“Retail”) and through our website and catalog orders (“Direct”). Net sales also include shipping and handling fees collected from customers, royalty revenues and marketing reimbursements related to our private label credit card agreement. Retail revenue is recognized at the time of sale or upon shipment if the sale is not immediately fulfilled, and Direct revenue is recognized upon shipment of merchandise to the customer. The following table presents disaggregated revenues by source (in thousands):

 

 

For the Thirteen Weeks Ended

 

 

 

May 2, 2026

 

 

May 3, 2025

 

Retail

 

$

78,553

 

 

$

81,813

 

Direct

 

 

65,874

 

 

 

71,811

 

Net sales

 

$

144,427

 

 

$

153,624

 

Remaining Performance Obligations

As of May 2, 2026, the transaction price allocated to remaining performance obligations amounts to $0.4 million, which relates to the marketing and promotion of the Company’s private label credit card program. This amount will be recognized as revenue evenly through January 2031.

Contract Liabilities

The Company recognizes a contract liability when it has received consideration from the customer and has a future obligation to the customer. Total contract liabilities consisted of the following (in thousands):

 

 

May 2, 2026

 

 

January 31, 2026

 

Upfront payment (1)

 

 

385

 

 

$

405

 

Unredeemed gift cards (2)

 

 

6,175

 

 

 

7,370

 

Total contract liabilities

 

$

6,560

 

 

$

7,775

 

(1)
The current and noncurrent portions of the upfront payment received in connection with the private label credit card agreement are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in the Company’s condensed consolidated balance sheets.
(2)
The unredeemed gift cards balance is included in Accrued expenses and other current liabilities in the Company’s condensed consolidated balance sheets. Revenue recognized for the thirteen weeks ended May 2, 2026 and May 3, 2025 related to the contract liability balance at the beginning of each fiscal year was $1,921 and $2,020.

The Company recognized revenue related to gift card redemptions and breakage for the thirteen weeks ended May 2, 2026 of approximately $3.3 million and for the thirteen weeks ended May 3, 2025 of approximately $3.2 million. Revenue recognized consists of gift cards that were part of the unredeemed gift card balance at the beginning of the period as well as gift cards that were issued and redeemed during the period.

Practical Expedients and Policy Elections

The Company excludes from its revenue all amounts collected from customers for sales taxes that are remitted to taxing authorities.

Shipping and handling activities that occur after control of related goods transfers to the customer are accounted for as fulfillment activities rather than assessing these activities as performance obligations.

The Company does not disclose the transaction price allocated to remaining performance obligations for contracts with customers that have an expected duration of one year or less. The Company applies the optional exemption to not disclose the transaction price allocated to remaining performance obligations where revenue represents sales-or-usage-based royalty. This optional exemption applies to royalty payments received from allowing a third party to use the J.Jill brand in providing a private label credit card to its customers through January 31, 2031. These royalties are based on an agreed-upon percentage of sales generated through the use of the private label credit card.