Jefferies lowers J.Jill stock price target to $20 on tariff impact

Published 03/09/2025, 18:56
Jefferies lowers J.Jill stock price target to $20 on tariff impact

Investing.com - Jefferies has lowered its price target on J.Jill Inc (NYSE:JILL) to $20.00 from $22.00 while maintaining a Buy rating on the stock. The company currently trades at $16.59, with analyst targets ranging from $16 to $30.

The firm cited better-than-expected results from the women’s apparel retailer, despite tariffs and elevated promotions negatively impacting profit margins. InvestingPro data shows the company maintains impressive gross profit margins of 70%, with multiple positive indicators available to subscribers.

Jefferies noted that J.Jill’s management provided a clear outline for future growth drivers, including new product initiatives, customer acquisition strategies, e-commerce development, and additional unspecified measures.

The research firm expressed confidence in J.Jill’s loyal customer base and strategic initiatives, which it believes position the brand for growth despite near-term headwinds.

The price target reduction reflects Jefferies’ lowered estimates to account for what it described as "more significant tariff impacts" on the company’s business.

In other recent news, J.Jill Inc reported stronger-than-expected earnings for the second quarter of 2025. The company’s earnings per share (EPS) reached $0.81, surpassing the forecasted $0.76, which represents a 6.58% positive surprise. Total revenue for the quarter came in at $154 million, slightly above the anticipated $149.46 million. Despite these positive results, concerns about future guidance and market conditions were reflected in investor reactions. Additionally, BTIG adjusted its price target for J.Jill to $26.00 from $30.00, although it maintained a Buy rating on the company. This adjustment was attributed to the company’s reliance on promotions to clear inventory ahead of the third quarter, despite exceeding expectations in top-line results. These developments highlight the ongoing challenges and opportunities facing J.Jill in the current market environment.

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