J.Jill, Inc. Announces Third Quarter 2025 Results

Core Insights - J.Jill, Inc. reported better than expected earnings results for the third quarter of fiscal year 2025, with net sales at the high end of expectations despite a slight decline compared to the previous year [2][5] - The company is focusing on long-term growth through strategic priorities such as evolving product assortment, enhancing customer journey, and improving operational efficiency [2] Financial Performance - Net sales for Q3 2025 decreased by 0.5% to $150.5 million compared to $151.3 million in Q3 2024 [5] - Comparable sales decreased by 0.9% in Q3 2025 [5] - Direct to consumer net sales, which accounted for 46.8% of total net sales, increased by 2.0% year-over-year [5] - Gross profit was $106.7 million, with a gross margin of 70.9%, down from 71.4% in Q3 2024 [5] - SG&A expenses rose to $91.8 million, representing 61.0% of total net sales, compared to 58.6% in Q3 2024 [5] - Operating income fell to $14.9 million, with an operating income margin of 9.9%, down from 12.7% in Q3 2024 [5] - Net income was $9.2 million, or $0.60 per diluted share, compared to $12.3 million, or $0.80 per diluted share in Q3 2024 [5][25] Year-to-Date Performance - For the thirty-nine weeks ended November 1, 2025, net sales decreased by 2.1% to $458.1 million compared to $468.0 million for the same period in 2024 [11] - Total company comparable sales decreased by 2.6% for the same period [11] - Direct to consumer net sales represented 46.7% of total net sales and decreased by 2.0% year-over-year [11] - Gross profit for the thirty-nine weeks was $322.4 million, with a gross margin of 70.4%, down from 71.6% in the prior year [11] - SG&A expenses increased to $271.5 million, representing 59.3% of total net sales, compared to 56.4% in the previous year [11] - Operating income for the thirty-nine weeks was $50.8 million, with an operating income margin of 11.1%, down from 15.1% in the prior year [6][11] Share Repurchase and Cash Flow - The company repurchased 115,612 shares for approximately $2.0 million during Q3 2025 and 370,852 shares for about $6.5 million during the thirty-nine weeks [9][10] - As of November 1, 2025, J.Jill had approximately $18.0 million remaining under its $25.0 million share repurchase program [10] - Net cash provided by operating activities for Q3 2025 was $19.1 million, unchanged from the prior year [11] - Free cash flow for Q3 2025 was $15.7 million, compared to $13.6 million in the prior year [11] Outlook - For the fourth quarter of fiscal 2025, the company expects net sales to decline approximately 5% to 7% compared to fiscal 2024 [18] - Comparable sales are anticipated to decrease by approximately 6.5% to 8.5% compared to fiscal 2024 [18] - The company expects adjusted EBITDA to be between $3.0 million and $5.0 million for the fourth quarter [18]