Core Viewpoint - J.Jill's stock fell nearly 40% following a reduction in guidance despite a slight growth in comparable sales, indicating concerns about future traffic trends and overall revenue performance [2][3]. Group 1: 2Q24 Results and Guidance - J.Jill reported a 0.9% year-over-year decline in revenues, but a 1.7% growth on a comparable basis, which is relatively positive in the current apparel market context [3]. - The company experienced a deceleration in growth from 3% in Q1 to 1.7% in Q2, with management warning of worsening traffic trends in July and August [3]. - Guidance for Q3 comparables has been reduced to a decline of 0.5%, with adjusted EBITDA expectations now down between 3% and 9% [3]. - Gross margins are expected to be challenged in the second half of 2024 due to declining sales and increased inventory levels, which rose 15% year-over-year [3]. - SG&A expenses increased by $2 million in Q2 due to wage inflation and other costs, with a total impact of $3.4 million for the year [3]. Group 2: Capital Structure and Financial Health - The company issued 1 million shares at $31 each to repay debts, reducing net debt from $94 million to $44.5 million [3][4]. - Despite reducing financial risk, the company still maintains leverage at high interest rates, with a term loan yielding 13% [4][5]. - The decision to implement a $0.07 quarterly dividend while holding debt has raised questions about capital allocation strategies [3][4]. Group 3: Valuation and Market Position - J.Jill's market capitalization is approximately $365 million, with an enterprise value of around $410 million, reflecting a decrease due to debt repayments [4]. - Expected adjusted EBITDA for the year is projected to be between $101 million and $108 million, leading to a net income range of $47 million to $52 million [4][5]. - The current EV/NOPAT is about 7.2x and P/E is approximately 7.3x, indicating a current earnings yield of 14%, which is considered reasonable but reflects the company's reliance on revenue growth [4][5].

Core Insights - J. Jill Inc reported better-than-expected earnings and sales results for Q2, but lowered its 2024 forecast [1][3] - The company experienced a 0.9% year-over-year decline in Q2 sales, totaling $155.24 million, which exceeded analyst expectations [1] - Comparable sales increased by 1.7%, with direct-to-consumer net sales rising by 3.6%, making up 47.1% of total sales [1] Financial Performance - Adjusted EPS for the second quarter was $1.05, surpassing the consensus estimate of $0.91 [1] - The company expects net sales for 2024 to be flat to up 1%, a revision from a prior growth estimate of 1% to 3% [3] - Adjusted EBITDA is projected to decline by 4% to 9%, compared to a previous forecast of a 1% to 3% decline [3] Analyst Ratings and Price Targets - Following the earnings announcement, J. Jill shares fell by 1.6% to $26.36 [3] - TD Cowen analyst Jonna Kim maintained a Hold rating and reduced the price target from $37 to $32 [5] - Telsey Advisory Group analyst Dana Telsey also maintained a Market Perform rating, cutting the price target from $38 to $31 [5] - The consensus price target for J. Jill is $38.17, with a high of $44 and a low of $31 from various analysts [6] - Recent analyst ratings suggest an average price target of $33.67, indicating a potential upside of 27% from current levels [6]

Core Viewpoint - J.Jill reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, but down from $1.10 per share a year ago, indicating an earnings surprise of 11.70% [1][2] Financial Performance - The company achieved revenues of $155.24 million for the quarter ended July 2024, slightly surpassing the Zacks Consensus Estimate by 0.07%, but down from $155.67 million year-over-year [2] - Over the last four quarters, J.Jill has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - J.Jill shares have increased approximately 25.1% since the beginning of the year, outperforming the S&P 500's gain of 15.9% [3] - The current Zacks Rank for J.Jill is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $153.73 million, and for the current fiscal year, it is $3.50 on revenues of $621.3 million [7] - The trend of estimate revisions for J.Jill is mixed, which may change following the recent earnings report [6] Industry Context - The Retail - Apparel and Shoes industry, to which J.Jill belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Viewpoint - J.Jill is expected to report a year-over-year decline in earnings and revenues for the quarter ended July 2024, which could significantly impact its near-term stock price depending on how actual results compare to estimates [1][3]. Earnings Expectations - The consensus estimate for J.Jill's quarterly earnings is $0.94 per share, reflecting a year-over-year decrease of 14.6% [3]. - Expected revenues for the quarter are $155.13 million, which is a slight decline of 0.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates during this period [4]. - The Most Accurate Estimate for J.Jill is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.33%, suggesting a bearish outlook from analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - J.Jill has beaten consensus EPS estimates in the last four quarters, including a surprise of +7.02% in the most recent quarter where actual earnings were $1.22 per share compared to an expected $1.14 [12][13]. Conclusion - J.Jill does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions related to the stock ahead of its earnings release [16].

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics to uncover potential opportunities [2][3]. Company Analysis: J.Jill (JILL) - J.Jill currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong market interest [4]. - The stock has a Forward P/E ratio of 9.12, significantly lower than the industry average of 15.05, suggesting potential undervaluation [4]. - Over the past 52 weeks, J.Jill's Forward P/E has fluctuated between a high of 11.07 and a low of 7.17, with a median of 8.66 [4]. - The P/CF ratio for J.Jill stands at 6.73, which is also below the industry average of 13.39, further indicating undervaluation based on cash flow [5]. - J.Jill's P/CF has ranged from a high of 7.94 to a low of 4.99 over the past year, with a median of 6.51 [5]. - These metrics suggest that J.Jill is likely undervalued, combined with a strong earnings outlook, making it an attractive value stock at present [6].

The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. J.Jill (JILL) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors. However, it's not enough to look at the price change for around t ...

J.Jill is a national women's retailer that provides apparel, footwear and accessories. It operates 244 stores in the United States and an e-commerce platform. It's a small cap company with a market cap of just $399 million. On June 7, 2024, J. Jill reported its fiscal first quarter 2024 results and beat on the Zacks Consensus by $0.08, or 7%. Earnings were $1.22 versus the Zacks Consensus of $1.14. Sales rose 7.5% to $161.5 million from $150.2 million in the year ago period. The company also has its direct- ...

Market Overview - European shares experienced a decline, with the eurozone's STOXX 600 falling by 1.31%, Germany's DAX dipping by 1.96%, and France's CAC 40 tumbling by 1.99% [1] - In the U.S., initial jobless claims rose by 13,000 to 242,000, exceeding market estimates of 225,000 [4] - U.S. producer prices fell by 0.2% month-over-month in May, contrary to market expectations of a 0.1% gain [4] - The Dow decreased by 0.21% to 38,629.82, while the NASDAQ rose by 0.26% to 17,654.01, and the S&P 500 gained 0.13% to 5,428.07 [14] Company Performance - A company reported a first-quarter FY25 sales decline of 9.5% year-on-year to $1.510 billion, missing the analyst consensus estimate of $1.514 billion, but adjusted EPS of $1.11 beat the consensus estimates of 85 cents [7] - Signet Jewelers Limited saw its shares fall around 16% during Thursday's session following mixed first-quarter earnings, including an 8.9% drop in same-store sales [23] Sector Performance - In trading, industrials shares fell by 0.9% [6] - Information technology shares increased by 1.1% on Thursday [15] Notable Stock Movements - J.Jill, Inc. shares dropped 18% to $32.35 after pricing its public offering of 2 million common stock at $31 per share [8] - Nuburu, Inc. shares fell 36% to $0.0933 following the announcement of a 1-for-40 reverse stock split [8] - BioRestorative Therapies, Inc. shares surged 33% to $1.77 after announcing advanced discussions for a ThermoStem license [17] - Zapp Electric Vehicles Group Limited shares increased by 275% to $2.68 after signing a memorandum of understanding for contract manufacturing in India [17] - Sharps Technology, Inc. shares rose by 12% to $0.3351 after securing a $30 million purchase order from Nephron Pharmaceuticals [17]

I started covering JILL in March 2024 with a Hold rating. Despite some of the company's positive characteristics (relatively premium offer, good post-pandemic margins, good SG&A control), I was worried about management's compensation, third-party relations, and a high level of debt. The valuation multiples assuming a return to gross margins below 70% didn't seem attractive. Good 1Q24 results J Jill (NYSE:JILL) is an apparel retailer. The company has 244 stores in the US and focuses on a high-income, adult w ...

For the full year, J.Jill forecasts net sales growth in the range of 1-3%. The company projects adjusted EBITDA to decrease in the band of 1-3%. This guidance considers the negative impact of the loss of the 53rd week in fiscal 2023, amounting to $7.9 million in net sales and $2.2 million in adjusted EBITDA. Additionally, operating expenses of $3 million associated with the OMS project are also factored into this guidance. .Jill, Inc. (JILL) reported strong first-quarter 2024 results, wherein the top and bo ...