J.Jill (JILL) Stock Forecast & Price Target

J.Jill Inc. has demonstrated effective inventory management through increased promotional activities, enabling the company to better align inventory with sales trends as it enters the second half of the year. The company reported sequential improvement in sales and traffic throughout the second quarter, particularly benefiting from positive consumer responses to promotional activities in July. Additionally, J.Jill's recently launched ship-from-store capabilities and the anticipated developments related to AI in 2026 position the company favorably in a market segment characterized by a loyal customer base, providing resilience against inflationary pressures.

J.Jill Inc is facing a challenging financial outlook as evidenced by its guidance for Q3, indicating low-single-digit decline to flat year-over-year growth due to a comparable comp decline in the low-single to mid-single digit range. The company's gross margin is projected to decrease further, with a notable decline of over 210 basis points driven by escalating tariff pressures, following a significant 200 basis point drop in 2025. Additionally, J.Jill's plans to open only 1-5 new retail locations in FY25, revised down from an earlier forecast of 5-10, suggest a cautious approach to growth amid current revenue and margin pressures.