Jefferies analyst Corey Tarlowe maintained a Buy rating on JJill today and set a price target of $18.00.
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Corey Tarlowe has given his Buy rating due to a combination of factors including the positive performance of JJill’s direct sales channel and the promising traction of new product lines. The direct sales channel saw a 2% increase in net sales, supported by positive traffic and ship-from-store initiatives, which helped maintain average unit retail prices despite lower conversion rates. Additionally, the introduction of new fashion items such as denim, faux suede, and faux leather outerwear, along with small capsules in sleep and cashmere, have shown strength in full-price sales, suggesting a positive consumer response to these offerings.
Despite some challenges, such as increased promotional pressure during the holiday season and softer store traffic, the company has made progress with new store openings, updating its guidance to open seven new locations in the fourth quarter. Although there are anticipated headwinds in the fourth quarter, including tariff impacts and elevated promotions, the overall strategic initiatives and product innovations provide a solid foundation for future growth, justifying the Buy rating.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $21.00 price target.