J.Jill Q3 earnings beat but provides cautious Q4 outlook

J.Jill, Inc. reported financial results for the third quarter of fiscal year 2025, with net sales decreasing slightly by 0.5 percent to 150.5 million dollars, while total company comparable sales saw a 0.9 percent decline. Notably, direct-to-consumer net sales, representing 46.8 percent of total net sales, increased by 2 percent. Adjusted net income per diluted share in the third quarter was 76 cents above the analyst estimate of 59 cents.

Commenting on the third quarter results, CEO and president Mary Ellen Coyne said: “In the third quarter we delivered better than expected earnings results with topline at the high end of our expectations."

Gross profit fell to 106.7 million dollars, resulting in a gross margin of 70.9 percent. Operating income decreased to 14.9 million dollars (a 9.9 percent margin), and net income dropped to 9.2 million dollars, translating to diluted earnings per share of 60 cents, compared to 80 cents last year. Adjusted EBITDA for the quarter was 24.3 million dollars.

Ellen acknowledged a "softer start" to the fourth quarter but emphasized the company's focus on long-term growth through evolving product assortment, enhancing the customer journey, and improving operations.

The company declared a quarterly cash dividend of 8 cents per share. Looking ahead, J.Jill provided a cautious outlook for the fourth quarter, projecting net sales to be down approximately 5 percent to 7 percent with comparable sales to be down approximately 6.5 percent to 8.5 percent and adjusted EBITDA between 3 million dollars and 5 million dollar, with the guidance reflecting an approximately 5 million dollars impact from tariffs. For the full fiscal year 2025, the company expects net sales to be down around 3 percent with comparable sales to be down approximately 4 percent and adjusted EBITDA between 80 million dollars and 82 million dollars.