- JILL is a clothing retailer with a strong online presence and sales momentum, trading at 8x adjusted historic earnings.
- Recent results have been strong, and 2022 could be a good year as normality resumes and customers buy clothes for back to work and travel.
- However, operational leverage cuts both ways, and should the U.S. consumer weaken or the company see fashion misses, then earnings could turn negative.
- If the company can execute in 2022, the upside is significantly convex, though downside risks cannot be eliminated.
- JILL offers a favorable risk/reward to investors, assuming the U.S. consumer remains robust and business execution remains strong.
For further details see:
J.Jill Likely To Outperform In 2022 If Growth Can Be Sustained