Wells Fargo says some J.C. Penney customers gone for good

|About: J.C. Penney Company Inc. (JCP)|By:, SA News Editor

"Taking a step back, this is a company selling product at lower margins than a year ago, and they still can't drive traffic or conversion (both were down), which tells us many of the customers they lost are gone for good," Wells Fargo's Paul Lejuez says, taking a decidedly downbeat stance on J.C. Penney's (JCP +3.7%) quarter.

Lejuez also thinks the company's plans to invest in marketing and store payroll may mean the beleaguered retailer will need "additional liquidity next year to funding working capital" if the situation doesn't turn around in relatively short order.

Underperform rating maintained. Price target is $10-11.

Earlier: Earnings, earnings highlights, heard on the JCP conference call