J.Jill, Inc. reported third‑quarter 2025 results that surpassed analyst expectations, with net sales of $150.5 million and a gross margin of 70.9%. The company’s adjusted earnings per share were $0.76, beating the consensus estimate of $0.59 by $0.17, a 28.8% upside. Revenue also exceeded the $148.37 million consensus estimate by $2.13 million.
The quarter’s top line was essentially flat compared with the same period a year earlier, falling 0.5% to $150.5 million from $151.3 million in Q3 2024. Direct‑to‑consumer sales, which now account for 46.8% of total net sales, grew 2.0%, underscoring the strength of the company’s e‑commerce channel. Gross margin slipped 0.5 percentage points to 70.9% from 71.4% in the prior year, reflecting modest pricing pressure and higher cost inputs, while adjusted EBITDA fell from $26.8 million to $24.3 million as operating leverage was partially offset by increased SG&A expenses.
Management highlighted that the full‑price strategy and operational efficiencies from the new Order Management System and ship‑from‑store capabilities helped contain costs. The company also noted an estimated $5 million incremental tariff impact that is factored into its guidance. "In the third quarter we delivered better than expected earnings results with topline at the high end of our expectations," CEO Mary Ellen Coyne said. "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."
Guidance for the fourth quarter and the full fiscal year 2025 remains cautious. Management expects net sales to decline 5% to 7% versus fiscal 2024, with comparable sales down 6.5% to 8.5%. Adjusted EBITDA for the quarter is projected between $3.0 million and $5.0 million. For the full year, net sales are forecast to be down about 3% from fiscal 2024, with comparable sales down roughly 4%, and adjusted EBITDA is expected to range from $80.0 million to $82.0 million. The guidance incorporates the $5 million tariff impact and signals management’s concern about near‑term demand softness while maintaining confidence in cost discipline and operational improvements.
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