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.
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.
