US' J.Jill sees slight revenue dip and higher SG&A in Q3

The gross profit slipped to $106.7 million from $108 million, and gross margin edged down to 70.9 per cent from 71.4 per cent. Sales, general, and administrative expenses (SG&A) costs increased to $91.8 million from $88.6 million, representing 61 per cent of sales.

The operating income declined to $14.9 million from $19.2 million, while adjusted income from operations fell to $18.5 million from $21.4 million. Net income dropped to $9.2 million from $12.3 million, with diluted earnings per share at $0.60 versus $0.80 last year, J.Jill, said in a press release.

The adjusted diluted earnings per share (EPS) stood at $0.76. Adjusted EBITDA declined to $24.3 million from $26.8 million, with the margin easing to 16.1 per cent. The company opened two new stores, bringing its total to 249.

“In the third quarter we delivered better than expected earnings results with topline at the high end of our expectations. Looking ahead, while we have seen a softer start to the fourth quarter, we remain focused on the foundational work that will position J.Jill for long-term growth,” said Mary Ellen Coyne, CEO and president of J.Jill.

“We are encouraged by the initial efforts we have made to rebalance our marketing mix and in our refreshed imagery both in store and online. As we aim to expand our customer file we are executing on three strategic priorities—evolving our product assortment, enhancing the customer journey, and improving how we work,” added Coyne.

For the thirty-nine weeks period, net sales were down 2.1 per cent to $458.1 million, while comparable sales declined 2.6 per cent YoY. DTC revenue decreased 2 per cent. The gross profit fell to $322.4 million and gross margin dropped to 70.4 per cent.

SG&A costs rose to $271.5 million, representing 59.3 per cent of sales. Operating income stood at $50.8 million, down from $70.6 million, and adjusted operating income decreased to $59.6 million. Net income totalled $31.4 million, compared with $37.2 million, though last year’s figure included an $8.6 million expense tied to debt extinguishment.

Diluted EPS was $2.05, while adjusted diluted EPS reached $2.44. Adjusted EBITDA fell to $77.2 million from $92.6 million. The company ended the period with 249 stores, having closed five locations and opened two.

J.Jill’s board declared a quarterly cash dividend of $0.08 per share on December 3, 2025, payable on January 7, 2026, to shareholders of record as of December 24, 2025.

For the fourth quarter (Q4) of FY25, the company expects net sales to decline 5 to 7 per cent and comparable sales to fall 6.5 to 8.5 per cent, with adjusted EBITDA forecast between $3 million and $5 million. Guidance reflects an estimated $5 million incremental tariff impact after vendor offsets.

For full FY25, J.Jill anticipates net sales down about 3 per cent, comparable sales down 4 per cent, adjusted EBITDA of $80 to $82 million, capital expenditure of roughly $20 million, and net growth of four new stores.

ALCHEMPro News Desk (SG)