J.Jill's 2Q24 results show a slight revenue growth on a comparable basis, but traffic trends in July and August raised concerns, leading to reduced guidance.
The company's capital structure is less leveraged due to issuing 1 million shares, but high leverage rates and questionable capital allocation remain issues.
Despite a fair current yield of 12-14%, I maintain a Hold rating due to decreased revenue guidance, high leverage, and unsatisfactory management policies.
Gross margins and profits are expected to be challenged in 2H24, with increased SG&A due to wage inflation and potential inventory promotions impacting financial performance.
Kathrin Ziegler
J.Jill (NYSE:JILL) posted 2Q24 results last week, with the stock cratering almost 40% after the company reduced guidance. The quarterly sales were good on a comparable basis (growing in a challenging context), but the company was wary about traffic trends in July
