J.Jill (JILL) Q4 2026 earnings summary

Executive summary

• Fiscal 2025 net sales were $596.5 million, down 2.3% year-over-year, with Q4 sales at $138.4 million, a 3.1% decline; comparable sales fell 3.1% for the year and 4.8% in Q4.

• Gross margin rate for FY25 was 68.7%, impacted by $7.5 million in incremental tariff costs; Q4 gross margin was 63.1%, down 320 bps year-over-year.

• Adjusted EBITDA for FY25 was $84.3 million (14.1% margin), down from $107.1 million in FY24; Q4 adjusted EBITDA was $7.2 million, down from $14.5 million.

• Q4 net loss was $3.5 million (vs. net income of $2.2 million prior year); full year net income was $27.9 million (down from $39.5 million).

• Leadership strengthened with new hires in merchandising and growth roles to drive transformation.

Financial highlights

• Adjusted net income per diluted share for FY25 was $2.44 (vs. $3.47 prior year); Q4 adjusted net loss per diluted share was $0.02 (vs. $0.32 income prior year).

• Free cash flow for FY25 was $23.2 million (41% FCF conversion rate); Q4 free cash flow was $(11.7) million.

• FY25 capital expenditures were $19 million (3% of revenue); year-end debt was $73 million, with $41 million in cash.

• Inventory at year-end was $70.1 million, including $9.0 million in incremental net tariff costs; up 14% year-over-year including tariffs.

• Nine new stores opened and five closed in FY25, ending with 256 stores; 94% of the store fleet was profitable.

Outlook and guidance

• FY26 net sales expected to be flat to down 2%, with comparable sales down 1–3%; adjusted EBITDA projected at $70–$75 million.

• Q1 FY26 net sales expected to decline 5–7%, with adjusted EBITDA of $15–$17 million and gross margin to decline ~400 bps due to $5 million incremental tariff impact.

• FY26 gross margin expected to decline ~50 bps, with $15 million incremental tariff impact; free cash flow projected at $20 million and capital expenditures at $25 million.

• Net store count expected to grow by about five, with half of new openings in re-entry markets; long-term fleet target is ~300 stores.

• Continued investment in technology, including a new merchandise planning system expected to go live in late 2026.