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J. Jill’s fourth quarter net sales dropped 3.1% year over year to $138.4 million, according to a Tuesday press release. The retailer’s total comparable sales decreased 4.8%.

The company’s direct-to-consumer net sales increased 2.6% for the quarter, but dropped for the full fiscal year 2025 by 0.8%. J. Jill reported a Q4 net loss of $3.5 million, compared to a $2.2 million net income in the year-ago period.

Full-year net sales dropped 2.3% to $596.5 million. For fiscal year 2026, net sales are expected to be flat to down by 2% and comparable sales are expected to drop 1% to 3%.

The holiday quarter reinforced why J. Jill is continuing to focus on its turnaround efforts, President and CEO Mary Ellen Coyne said on an earnings call Tuesday.

“We had an early assortment that did not resonate as hoped,” the executive said. “We came up against earlier and deeper competitive holiday promotions and we watched our direct customer continue to migrate toward the promotional end of the spectrum.”

The first quarter of the new fiscal year has been challenged, particularly driven by price sensitivity, Coyne added. The retailer is using learnings from the start of this year to inform the rest of 2026, and views this year as another period of change.

“We are confident in our strategic direction while being realistic about the current consumer environment, the impact of tariffs and the work ahead,” Coyne told analysts.

The retailer is focused on expanding its customer file and piloted new customer acquisition strategies in the second half of the year, the CEO said in a statement.