US-based speciality retailer J.Jill reported weaker fourth-quarter (Q4) and full-year results, with lower sales, margin pressure and a shift to a quarterly net loss.
For the quarter ended 31 January 2026, net sales declined 3.1% to $138.4m from $142.8m a year earlier, while total company comparable sales dropped 4.8%.
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Gross profit fell to $87.3m from $94.8m, and gross margin narrowed to 63.1% from 66.3%, reflecting approximately $4.5m in additional tariff-related costs.
The company recorded an operating loss of $0.2m, compared with an operating income of $5.1m in the prior-year period.
Net loss for the quarter was $3.5m versus net income of $2.2m a year earlier, including $3.1m in expenses linked to debt refinancing.
Adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation] declined to $7.2m from $14.5m.
J.Jill ended the quarter with 256 stores after opening seven new locations.
For the full year, net sales decreased 2.3% to $596.5m from $610.9m, while comparable sales fell 3.1%.
Gross profit totalled $409.7m, down from $429.9m, with gross margin slipping to 68.7% from 70.4%, including approximately $7.5m in incremental tariff costs.
Operating income declined to $50.6m from $75.7m, with the operating margin reducing to 8.5% from 12.4%.
Net income came in at $27.9m compared with $39.5m in the previous year while adjusted EBITDA decreased to $84.3m from $107.1m.
During fiscal 2025, the company opened nine stores and closed five, ending the year with a total of 256 locations.
The board declared a quarterly cash dividend of $0.09 per share, payable on 28 April 2026 to shareholders of record as of 14 April 2026, marking a 12.5% increase and implying an annualised dividend of $0.36 per share.
J.Jill president and CEO Mary Ellen Coyne said: “Throughout 2025, we deliberately embarked on a period of testing and learning to build the foundation for expanding our customer file. As we moved into the second half of the year, we validated new opportunities within our product assortment, piloted customer acquisition strategies, and implemented enhanced operational capabilities.”
Looking ahead, J.Jill expects first-quarter fiscal 2026 net sales to decline between 5% and 7%.
For the full year, the company forecasts net sales to be flat to down 2%, with comparable sales expected to decline 1% to 3%.
It projects adjusted EBITDA of $70m to $75m, capital expenditure of $25m, net new store growth of around five locations, and free cash flow of approximately $20m.
