J.Jill reported fourth‑quarter and full‑year 2025 results, showing net sales of $138.4 million for the quarter, a 3.1% year‑over‑year decline, and total annual sales of $596.5 million, down 2.3% from $612.8 million. The company posted an adjusted loss per share of $0.02, beating the consensus estimate of a $0.11 loss.
Gross margin contracted to 63.1% in the quarter from 66.3% a year earlier, driven by a 15‑percentage‑point increase in tariff costs that added roughly $7.5 million to the cost of goods sold. Full‑year gross margin fell to 68.7% from 70.4%, reflecting the same tariff pressure.
Management highlighted that the direct‑to‑consumer channel grew, offsetting weakness in the brick‑and‑mortar segment. CEO Mary Ellen Coyne said the company is “testing and learning” to build its customer file, noting that early holiday assortment did not resonate and that price‑sensitive shoppers were drawn to promotional competitors.
The company guided for fiscal 2026 net sales to decline 5%‑7% and adjusted EBITDA to $15‑$17 million for the first quarter, with full‑year guidance of flat to down 2% sales and $70‑$75 million EBITDA. The outlook signals caution amid tariff headwinds and a competitive retail environment, while the dividend increase to $0.09 per share—12.5% higher than the prior quarter—shows confidence in cash generation.
Market reaction was muted, with the stock trading near its 52‑week low after the earnings release, reflecting investor concern over the cautious guidance and margin compression.
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