J.Jill (NYSE:JILL) reported second-quarter results that exceeded analyst expectations but provided a cautious sales forecast for the third quarter of fiscal 2025. Shares slipped slightly in premarket trading on Wednesday.
The retailer posted Q2 earnings of $0.81 per share, surpassing the average analyst estimate of $0.76, on revenue of $154 million, compared with the consensus of $149.46 million.
Comparable sales declined 1% year-over-year, while direct-to-consumer sales, which make up 46.4% of total revenue, fell 2.2%.
Adjusted EBITDA reached $25.6 million, down from $30.2 million a year earlier, with the margin narrowing to 16.6% from 19.4%. Gross margin also decreased to 68.4% from 70.5%.
The company closed two stores during the quarter, bringing its total footprint to 247, up from 244 in the prior-year period.
“During the second quarter we saw sequential improvement in sales trends each month as traffic improved and customers responded positively to the summer sale period,” said Mary Ellen Coyne, CEO and President of J.Jill.
“In line with our operating model disciplines, we took actions in season to enter the second half of the year with inventories more aligned with current trends, and we are pleased with how our teams are continuing to navigate a very dynamic environment.”
For the third quarter, J.Jill anticipates net sales to be flat to down low single digits year-over-year, with comparable sales down low to mid-single digits. Adjusted EBITDA is expected to range between $18 million and $22 million, factoring in roughly $5 million in incremental tariff-related costs, net of vendor offsets.
For the full fiscal year, the company reaffirmed its guidance for capital expenditures of $20 million to $25 million and net new store growth of one to five locations.
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