J.Jill Inc. raised its fiscal 2025 fourth‑quarter outlook after a stronger‑than‑anticipated holiday season, signaling confidence in the brand’s resilience amid tariff pressures and a modest rebound in consumer demand.
The updated Q4 guidance now projects net sales to decline 4% to 6%, comparable sales to fall 6% to 8%, and adjusted EBITDA to range from $5.0 million to $6.0 million. The company attributes the improvement to a $5.0 million incremental tariff impact that has been largely offset by vendor negotiations, allowing it to maintain profitability despite a sales decline.
For the full year, J.Jill now expects net sales to decline about 3%, comparable sales to decline roughly 4%, and adjusted EBITDA to fall between $82.0 million and $83.0 million. The company maintains a capital‑expenditure plan of approximately $20 million and a net‑new store growth target of four new locations, underscoring its commitment to expanding its footprint while managing costs.
The stronger holiday season was driven by robust demand in core apparel categories, a successful marketing push, and a shift toward online sales. Vendor negotiations helped mitigate the impact of tariffs, and the company’s full‑price strategy and operational efficiencies are expected to protect margins in a challenging retail environment.
In Q3 FY25, J.Jill reported net sales of $150.5 million, a 0.5% year‑over‑year decline, and an EPS of $0.76 that beat analyst expectations by $0.17. The company’s margin expansion was largely due to disciplined cost control and a favorable mix shift toward higher‑margin product lines.
Investors welcomed the guidance raise; the market had an 8% gain over the past week, driven by the Q3 earnings beat and a recent credit‑agreement refinancing that is expected to save the company $2 million. The guidance lift signals management’s confidence in the company’s ability to navigate tariff headwinds and sustain profitability.
CEO Mary Ellen Coyne said, “We are pleased to raise our fourth‑quarter outlook following a stronger‑than‑anticipated finish to the holiday season. Looking ahead, we will continue to execute our strategic initiatives focused on unlocking future growth and expanding our customer base.”
The guidance raise indicates that J.Jill is resilient amid ongoing tariff pressures and a modest retail slowdown. By focusing on profitability, maintaining a disciplined capital‑expenditure program, and opening a modest number of new stores, the company positions itself for steady, long‑term growth while managing short‑term headwinds.
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