Stock Price Plunges More than 51%
After the close of trading on Wednesday, October 11, 2017, J.Jill announced that it experienced a lower than expected sales trend across both its retail and direct channels, and that it anticipates same-store sales will fall 3% to 5% in the third quarter. Prior guidance for J.Jill called for comparable sales to increase in the high single digits.
Following this news, on October 12, 2017, J.Jill’s stock price plunged by more than 51% to close at $4.86, causing significant harm to investors.
"Something May Have Gone Very Wrong"
This news comes just seven months after the company’s initial public offering, priced at $13 per share on March 9, 2017.
According to an analyst at Wells Fargo:
The real issue is that following their recent IPO, the J.Jill story was predicated on sustainable, steady mid-single-digit-to-high-single-digit comp growth and margin expansion, meaning that something may have gone very wrong over the past six months.
Our investigation focuses on the Company’s IPO and the accuracy of information disclosed to investors in the Offering Materials.
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