JILL · J.Jill, Inc.

J.Jill, Inc. announced financial results for the fourth quarter and fiscal year ended January 31, 2026, revealing a decline in sales and profitability. Net sales for the fourth quarter decreased 3.1% to $138.4 million, with total company comparable sales falling 4.8%. The company cited a deliberate period of testing and learning throughout 2025 to build a foundation for customer file expansion, with management noting early progress on product assortment and customer acquisition strategies. Gross margin contracted 320 basis points to 63.1%, primarily attributed to approximately $4.5 million in incremental tariff costs net of vendor mitigation. Consequently, the company reported an operating loss of $0.2 million compared to operating income of $5.1 million in the prior year quarter. Net loss for the quarter was $3.5 million, or $0.23 per diluted share, which included $3.1 million in expenses related to debt refinancing. On a positive note, direct-to-consumer net sales increased 2.6% and represented 53.5% of net sales. The company successfully refinanced its credit agreement in December 2025 with a new $75 million senior secured five-year term loan facility. Looking ahead, management provided fiscal 2026 guidance projecting net sales to be flat to down 2%, with Adjusted EBITDA expected in the range of $70 million to $75 million. The outlook incorporates anticipated incremental tariff cost impacts of approximately $15 million for the full year. The Board declared a quarterly dividend of $0.09 per share, representing a 12.5% increase, signaling confidence in the company's cash generation capabilities despite near-term headwinds.