J.Jill (JILL) Stock Forecast & Price Target

J.Jill Inc. demonstrated a positive financial performance with direct sales rising by 2.0% year-over-year, largely driven by increased online traffic and the effective utilization of ship-from-store capabilities. The company's gross margin contraction was more favorable than anticipated, along with SG&A leverage aligning closely with forecasts, contributing to enhanced earnings flow-through. Additionally, J.Jill's strategic focus on inventory management, even amidst rising costs due to tariffs, and their efforts to expand their customer base through strong margins and free cash flow, position the company favorably as it heads into the holiday season and fiscal year 2026.

J.Jill Inc. is experiencing significant financial challenges, as evidenced by a decline in third-quarter adjusted EBITDA margin to 16.1%, representing a year-over-year drop of 160 basis points. The company's operating margin also contracted to 12.3%, reflecting lower gross margins coupled with stable selling, general, and administrative expenses, contributing to an overall downward trend in profitability. Furthermore, J.Jill's revenue guidance indicates a potential low-single-digit decline, compounded by tariff pressures that are expected to worsen gross margin performance and lead to adjusted EBITDA expectations falling below prior consensus estimates.