J.Jill Inc (JILL) delivered a mixed bag of results in its second-quarter earnings report, exceeding analysts’ expectations for both earnings and sales but lowering its 2024 forecast. Despite a slight 0.9% year-over-year decline in total sales, reaching $155.24 million, the company outperformed the analyst consensus estimate of $154.23 million. J.Jill’s comparable sales across all channels increased by 1.7%, with direct-to-consumer net sales climbing 3.6% year-over-year, now accounting for 47.1% of total sales. The company also reported adjusted earnings per share of $1.05, surpassing the consensus estimate of 91 cents.
However, the company’s positive results were tempered by a cautious outlook for the remainder of the year. J.Jill attributed the lowered forecast to changes in consumer behavior during the summer months, which have continued into the third quarter. Despite the challenges, J.Jill remains committed to operating with financial discipline, maintaining healthy margins, and generating significant cash flow.
In its revised guidance, J.Jill expects net sales to be flat to up 1% for the full year 2024, compared to its previous forecast of 1% to 3% growth. Adjusted EBITDA is projected to decline by 4% to 9%, compared to the prior view of a 1% to 3% decline.
Following the earnings announcement, several analysts adjusted their price targets for J.Jill. TD Cowen analyst Jonna Kim maintained a Hold rating but lowered her price target from $37 to $32. Telsey Advisory Group analyst Dana Telsey also maintained a Market Perform rating but reduced her price target from $38 to $31.
