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Investing.com - TD Cowen raised its price target on J.Jill Inc. (NYSE:JILL) to $17.00 from $16.00 on Wednesday, while maintaining a Hold rating on the women’s apparel retailer. According to InvestingPro data, analyst targets for the stock range from $16 to $26, with the company currently trading at an attractive P/E ratio of 7.2x.
The firm characterized J.Jill’s second-quarter fiscal 2025 results as "mixed," noting that better performance was primarily driven by increased clearance activities rather than core business strength. Despite challenges, the company maintains impressive gross margins of 70% and generated $34.1 million in free cash flow over the last twelve months.
TD Cowen pointed to a relatively weaker third-quarter outlook compared to consensus expectations, which reflects ongoing uncertainty in consumer spending patterns and the potential impact of tariffs.
Despite these challenges, the research firm highlighted several positive factors for J.Jill, including cleaner inventory positions for the second half of the fiscal year and enhanced omni-channel capabilities.
The analyst also noted improvements in store and brand presentation, along with J.Jill’s renewed focus on growing its customer base, as key positives for the retailer’s outlook.
In other recent news, J.Jill Inc reported stronger-than-expected earnings for the second quarter of 2025. The company achieved an earnings per share of $0.81, surpassing the forecasted $0.76, which represents a 6.58% positive surprise. Total revenue was reported at $154 million, slightly above the anticipated $149.46 million. Despite these positive results, the company’s stock experienced a decline in pre-market trading due to investor concerns about future guidance and market conditions. Jefferies has lowered its price target for J.Jill to $20, citing the impact of tariffs and elevated promotions on profit margins, while maintaining a Buy rating. Similarly, BTIG reduced its price target to $26 from $30, also maintaining a Buy rating, following J.Jill’s reliance on promotions to clear inventory in the second quarter. These recent developments highlight the challenges J.Jill faces amid promotional pressures and tariff impacts.
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