J.Jill 2026 Q3 Earnings Misses Expectations as Net Income Dips 25.5%

J.Jill reported fiscal 2026 Q3 earnings on Dec. 10, 2025, with adjusted EPS of $0.76, beating estimates of $0.59 but trailing the prior-year $0.81. The stock fell 2.97% pre-market as weak Q4 guidance overshadowed the beat. Management cited softer holiday sales and margin pressures, forecasting Q4 net sales down 5-7%.

Revenue

Retail revenue stood at $80.06 million, while the Direct segment contributed $70.47 million, bringing total net sales to $150.53 million—a 0.5% decline from $151.26 million in 2025 Q3. The Direct channel accounted for 46.8% of total sales, though overall revenue fell amid a promotional market and inventory challenges.

Earnings/Net Income

J.Jill’s EPS dropped 24.7% to $0.61, and net income fell 25.5% to $9.21 million. The decline underscores margin compression from tariffs, elevated promotions, and a challenging retail environment.

Post-Earnings Price Action Review

The strategy of buying JILL when earnings beat and holding for 30 days delivered strong results, with a 164.78% return, vastly outperforming the benchmark return of 86.69%. The strategy’s excess return of 78.09% and CAGR of 21.63% highlight its potential, though a maximum drawdown of 60.11% and a Sharpe ratio of 0.36 indicate high volatility and moderate risk-adjusted returns.

CEO Commentary

Mary Coyne, CEO, highlighted “solid” Q3 performance, noting better-than-expected earnings and strong cash generation. She emphasized progress in new product categories like jackets and bottoms but acknowledged holiday assortment challenges. Strategic priorities include localized merchandising, digital and TV advertising, and operational efficiency.

Guidance

Q4 sales are expected to decline 5-7%, with comparable sales down 6.5-8.5%. Adjusted EBITDA is projected at $3-5 million, reflecting $5 million in tariff costs and margin pressures. Full-year sales are anticipated to fall ~3%, with $80-82 million in adjusted EBITDA. The company plans to open 7 new stores in Q4 and maintain $25 million in buybacks.

Additional News

J.Jill appointed Viv Rettke as Chief Growth Officer to lead e-commerce and AI initiatives, signaling a focus on digital innovation. The company also announced a $0.08 quarterly dividend and $2.0 million in share repurchases. Meanwhile, Q4 sales guidance disappointed investors, with net sales projected to fall 5-7% amid heightened promotions and inventory markdowns.