J.Jill, Inc. Leases Disclosure
13. Operating Leases
As of January 31, 2026, the Company leases all of its retail stores, a distribution center, and office space. As of that same date, the Company did not have any financing leases and no operating leases contained any material residual value guarantees or material restrictive covenants. Certain of the Company’s retail operating leases include variable rental payments based on a percentage of retail sales over contractual levels.
Some retail leases include one or more options to renew, with renewal terms that can extend the lease term from to fifteen years. The Company’s distribution center has renewal terms that can extend the lease term up to twenty years. The exercise of lease renewal options is at the Company’s sole discretion.
The Company maintained a tenant incentive liability of $0.1 million and $0.2 million as of January 31, 2026 and February 1, 2025, respectively, related to certain variable retail leases.
The components of lease expense were as follows (in thousands):
|
|
|
|
For the Fiscal Year Ended |
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|||||||||
Lease Cost |
|
Classification |
|
January 31, 2026 |
|
|
February 1, 2025 |
|
|
February 3, 2024 |
|
|||
Operating lease cost |
|
SG&A Expenses |
|
$ |
43,492 |
|
|
$ |
39,866 |
|
|
$ |
39,102 |
|
Variable lease cost |
|
SG&A Expenses |
|
|
2,382 |
|
|
|
3,675 |
|
|
|
3,089 |
|
Total lease cost |
|
|
|
$ |
45,874 |
|
|
$ |
43,541 |
|
|
$ |
42,191 |
|
For Fiscal Year 2025, noncash impairment charges related to certain operating lease right-of-use ("ROU") assets of $0.3 million were recorded. The Company reduced the carrying value of the related ROU assets to their estimated fair value, which was determined using a fair market rent analysis.
For Fiscal Year 2024, noncash impairment charges related to ROU assets of $0.3 million were recorded. The impairment charges related primarily to a ROU asset which arose from the revised sublease assumptions relating to one floor of the corporate headquarters located in Quincy, Massachusetts that was vacated in July 2019. There were no impairments recorded in Fiscal Year 2023.
For Fiscal Years 2025, 2024, and 2023, Selling general and administrative expenses included common area maintenance expense of $13.7 million, $12.2 million and $13.2 million, respectively.
For Fiscal Years 2025, 2024, and 2023, the total cash paid for amounts included in the measurement of operating lease liabilities was $47.9 million, $43.2 million and $45.1 million, respectively.
The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
Lease Term and Discount Rate |
|
January 31, 2026 |
|
|
Weighted-average remaining lease term (in years) |
|
|
|
|
Operating leases |
|
|
5.1 |
|
Weighted-average discount rate |
|
|
|
|
Operating leases |
|
|
6.9 |
% |
Maturities of lease liabilities as of January 31, 2026 were as follows (in thousands):
Fiscal Year |
|
Operating Leases(1) |
|
|
2026 |
|
|
43,800 |
|
2027 |
|
|
40,047 |
|
2028 |
|
|
30,215 |
|
2029 |
|
|
23,777 |
|
2030 |
|
|
14,307 |
|
Thereafter |
|
|
29,958 |
|
Subtotal |
|
|
182,104 |
|
Less: Imputed interest |
|
|
30,614 |
|
Present value of lease liabilities |
|
$ |
151,490 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 31, 2026 | Showing above |
| 2025 | Apr 1, 2025 | |
| 2024 | Apr 4, 2024 | |
| 2023 | Mar 30, 2023 | |
| 2022 | Apr 13, 2022 | |
| 2021 | Apr 12, 2021 | |
| 2020 | Jun 15, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.