Please ensure Javascript is enabled for purposes of website accessibility

Why J.Jill Stock Jumped Wednesday

By Daniel Sparks – Updated Apr 11, 2019 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The women's apparel retailer's "cleaner, leaner inventories" helped drive a better-than-expected profit.

What happened

Shares of specialty women's apparel retailer J.Jill (JILL 0.48%) jumped on Wednesday, rising as much as 15.3%. As of 11:47 a.m. EST, the stock was up 13.2%.

The stock's gain follows J.Jill's fourth-quarter and full-year update and is likely due to the company's better-than-expected earnings per share and the announcement of a special dividend.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

J.Jill reported net sales of $170.9 million. That was down from $188.7 million in the year-ago quarter (which included an extra week) but in line with analysts' consensus forecast. J.Jill's Q4 EPS came in at $0.05, beating analysts' average estimate for $0.02.

"I am especially pleased by our year-over-year gross margin improvement for the quarter driven by cleaner, leaner inventories and reduction in promotional activity," said CEO Linda Heasley in the company's fourth-quarter earnings call.

Check out the latest earnings call transcript for J.Jill.

Now what

For its fiscal 2019, J.Jill expects total comparable sales to be about flat. In addition, management said it expected full-year earnings per share to be $0.66 to $0.70, including a $0.09-$0.10 impact related to technology investments. This compares to earnings per share of $0.69 in fiscal 2018.

Daniel Sparks 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.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.