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Why Shares of J.Jill Are Popping Today

By Daniel Miller – Apr 17, 2018 at 12:45PM

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J.Jill investors are more optimistic after insider buying, but challenges remain.

What happened

Shares of omnichannel women's apparel retailer J.Jill, Inc. (JILL -0.85%) are popping today, up more than 11% as of 11:05 a.m. EDT, following an insider share purchase.

So what

Per a legal filing with the SEC, J.Jill director Travis Nelson purchased 100,000 shares of company stock in a set of transactions dated Friday, April 13 for an average cost of $5.00 per share and a total value of $500,000. The bullish signal from an insider buying is a welcome relief for investors, who have watched the stock shed nearly 60% of its value over the past 12 months.

Middle-aged woman wearing glasses and a blazer sitting at an office desk

Image source: Getty Images.

Now what

J.Jill still faces challenges getting its new e-commerce platform performing up to expectations, and management believes its direct business segment will weigh on comparable-store sales during the 2018 fiscal first quarter. Management also slightly lowered earnings-per-share estimates from $0.22 down to $0.18-$0.20 for the first quarter. While today's 11% pop is a welcome change of pace for investors, the insider buy alone doesn't affect the retail challenges J.Jill is currently working through.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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