J.Jill, Inc. (NYSE:JILL) reported third-quarter earnings on Tuesday that surpassed Wall Street expectations, but the retailer’s cautious fourth-quarter outlook weighed on investor sentiment. Shares were down 2.97% in premarket trading following the announcement.
The company delivered adjusted earnings of $0.76 per share, well above analyst forecasts of $0.59. Revenue totaled $150.5 million, slightly ahead of the $148.37 million consensus estimate, though it slipped 0.5% from the same quarter last year. Comparable sales also edged down 0.9% year over year.
Despite outperforming expectations, the market’s attention shifted to management’s warning of a “softer start to the fourth quarter.” J.Jill now anticipates a 5% to 7% drop in Q4 net sales versus fiscal 2024, with comparable sales expected to fall between 6.5% and 8.5%.
“In the third quarter we delivered better than expected earnings results with topline at the high end of our expectations,” said Mary Ellen Coyne, Chief Executive Officer and President of J.Jill. “Looking ahead, 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.”
The company’s direct-to-consumer channel continued to perform well, with sales rising 2.0% year over year and making up 46.8% of total revenue. However, gross margin narrowed slightly to 70.9%, compared with 71.4% in the prior-year period.
For fiscal 2025, J.Jill expects net sales to fall around 3% from fiscal 2024 levels, with comparable sales down about 4%.
J.Jill held its quarterly dividend steady at $0.08 per share, payable January 7, 2026, and repurchased 115,612 shares for roughly $2.0 million during the quarter.