J Jill reported a modest drop in sales for the third quarter despite an improved performance in its direct-to-consumer segment (DTC).

The lifestyle brand’s net sales for the quarter ended November 1 decreased 0.5 per cent year-on-year to $150.5 million. This follows a 0.8 per cent decline in the second quarter.

Direct-to-consumer net sales, which represented 46.8 per cent of net sales, were up 2 per cent during the period.

Comparable sales, which include comparable store and direct-to-consumer sales, decreased by 0.9 per cent. 

On the bottom line, operating income fell from $19.2 million a year ago to $14.9 million, and net income decreased from $12.3 million to $9.2 million.

“We delivered better than expected earnings results with topline at the high end of our expectations,” said CEO Mary Ellen Coyne.

“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,” Coyne added.

The company expects net sales to decrease 5-7 per cent in the fourth quarter and approximately 3 per cent for the full year.