J.Jill (JILL) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $150.5 million, down 0.5% year-over-year, with gross margin at 70.9% and net income of $9.2 million; direct to consumer sales grew 2% and represented 46.8% of total sales.

• Comparable sales decreased 0.9%, with positive customer response to new product assortments and digital marketing driving new customer growth.

• SG&A expenses increased due to non-recurring, shipping, and technology costs, impacting net income and operating margin.

• Opened two new stores in Chicago and Houston, ending Q3 with 249 stores and promising early results.

• Early Q4 trends showed increased price sensitivity and less resonance with holiday assortments.

Financial highlights

• Q3 gross profit was $106.7 million, with gross margin at 70.9%, down from 71.4% year-over-year, mainly due to $2.5 million in tariffs.

• SG&A expenses rose to $91.8 million (61.0% of sales), up from $88.6 million (58.6% of sales) year-over-year.

• Adjusted EBITDA was $24.3 million (16.1% margin), down from $26.8 million (17.7% margin) in the prior year.

• Net income for the quarter was $9.2 million, with adjusted net income per diluted share of $0.76.

• Cash and cash equivalents at quarter-end were $58.0 million, with $19 million cash from operations.

Outlook and guidance

• Q4 sales expected to decline 5%-7%, with comparable sales down 6.5%-8.5% and adjusted EBITDA guidance of $3 million-$5 million.

• Full-year sales expected to be down about 3%, comparable sales down about 4%, and adjusted EBITDA between $80 million and $82 million.

• Seven new stores to open in Q4; net new store growth of 4 stores anticipated for FY25.

• 2025 capital expenditures projected at $20 million.

• Management believes current liquidity and access to capital are sufficient for operational and strategic needs.