J.Jill, Inc. (JILL) Is “Irrelevant,” Says Jim Cramer

J.Jill, Inc. (NYSE:JILL) is one of the Jim Cramer Says People Are Getting “Happier” & Discusses These 11 Stocks.

J.Jill, Inc. (NYSE:JILL) is an American women’s apparel firm headquartered in Massachusetts. The firm’s shares are down by a whopping 50% year-to-date making it one of the worst-performing retail stocks this year. Over the year, J.Jill, Inc. (NYSE:JILL)’s stock has bled 58.8%. The recent bit of turmoil surrounding the stock came in June when the shares sank by 16%. The dip came after the firm released its earnings report for the first quarter. The results saw the firm post 88 cents in adjusted earnings which was higher than 86 cents in analyst estimates. J.Jill, Inc. (NYSE:JILL)’s revenue sat at $153.6 million which fell short of $156.8 million of analyst estimates. However, the major reason the stock dipped was the firm’s announcement that it would withdraw its full-year outlook. Cramer’s comments about J.Jill, Inc. (NYSE:JILL) were short:

“Yeah they’re [JILL] irrelevant.”

A busy street in a metropolitan scene, featuring the company omnichannel retail stores.

During its earnings call, J.Jill, Inc. (NYSE:JILL)’s management asserted that while it was pulling its outlook, teams were nevertheless working to drive sales:

“Now for more on our outlook. As I mentioned, given the increased uncertainty with respect to the macroeconomic environment, along with our recent CEO transition, we are withdrawing our prior full year guidance and temporarily suspending our practice of providing forward guidance on most metrics. That said, our teams are diligently working to assess opportunities for improvement within the assortment, and we have taken swift actions to reduce inventory investments in floor sets beginning in the third quarter to better align with current demand trends. Quarter-to-date through May, total company sales are down mid-single digits compared to the prior year period. While comparisons get easier as we move forward, should sales continue to decline at this level, we would expect to see significant SG&A deleverage as well as further pressure on gross margin, driven by actions taken to ensure the movement of inventory in season.”

While we acknowledge the potential of JILL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.