J.Jill (JILL) Stock Forecast & Price Target

J.Jill Inc has demonstrated a positive operational outlook, as evidenced by improved sales and traffic trends sequentially throughout the second quarter, bolstered by effective promotional activities. The company has strategically enhanced its inventory management in response to consumer demand, leading to a better alignment with sales trends as it entered the second half of the year. Furthermore, the introduction of ship-from-store capabilities and a loyal customer base that is relatively insulated from inflation provides a robust foundation for future growth, particularly with anticipated developments around AI in 2026.

J.Jill Inc. is facing notable challenges, reflected in its anticipated revenue guidance of low single-digit declines to flat year-over-year growth, attributed to comparable store sales declines in the low to mid-single-digit range. The company’s gross margin is projected to decrease significantly, with a year-over-year decline of approximately 200 basis points attributed to increased tariff pressure and elevated selling, general, and administrative costs, which includes expenses related to a new order management system. Furthermore, J.Jill is adjusting its store expansion plans downward, now expecting only 1-5 net new stores for fiscal year 2025, a reduction from previously anticipated figures, signaling potential limitations on future revenue growth.