For the fiscal year, J.Jill's net sales decreased by 2.3%, amounting to $596.5 million compared to $610.9 million in the prior year. The company faced challenges with gross profit, which was reported at $409.7 million, down from $429.9 million the previous year, resulting in a gross margin decline from 70.4% to 68.7%. Operating income also saw a significant drop, falling to $50.6 million from $75.7 million in the prior year, with an operating income margin of 8.5% compared to 12.4%.
Mary Ellen Coyne, President and CEO, stated, "Throughout 2025, we deliberately embarked on a period of testing and learning to build the foundation for expanding our customer file. We are encouraged by the early progress on these initiatives and remain focused on the important work required to position the business for sustainable growth."
The company also reported a net loss of $3.5 million for the fourth quarter, compared to a net income of $2.2 million in the same quarter last year. This loss included $3.1 million in expenses related to debt refinancing. J.Jill's leadership remains optimistic about future growth, with plans to enhance operational capabilities and expand customer acquisition strategies. The company anticipates a decline in net sales of 5% to 7% for the first quarter of fiscal 2026, along with a comparable sales decline of 7% to 9%. J.Jill's outlook reflects a cautious approach to inventory investments and operational execution as it navigates the current market conditions.
