Seeking Alpha

J.C. Penney reports first positive comp since 2011

  • J.C. Penney (JCP) reports a 2% increase in same-store sales during FQ4.
  • It's the first time the retailer pulled off a positive comp for a quarter since Q2 of 2011.
  • On liquidity, J.C. Penney says it ended the fiscal year north of the $2B mark.
  • JCP +4.1% premarket
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Comments (14)
  • DeepValueLover
    , contributor
    Comments (9793) | Send Message
     
    So much for that impending bankruptcy.

     

    All JCP needed to do was to get back to its sub-par pre-Johnson operating performance to squeeze the shorts. No amazing turnaround necessary to jack up the stock price.

     

    I knew the options market screwed this one up.

     

    Disclosure: Short $3 AUG14 puts.
    4 Feb 2014, 08:45 AM Reply Like
  • like chocolate
    , contributor
    Comments (13) | Send Message
     
    Bravo JCP. I have been shopping JCP.com so hopefully I helped push it over the top! Any positive is a plus for this stock.
    4 Feb 2014, 08:47 AM Reply Like
  • the_value_vulture
    , contributor
    Comments (245) | Send Message
     
    I really wouldn't applaud a 2% increase. This does not bode well for a quick turnaround which this company desperately needs to stay alive.
    4 Feb 2014, 08:54 AM Reply Like
  • Stan Ackman
    , contributor
    Comments (1238) | Send Message
     
    With all the clearance, SSS of 2% is hardly an improvement. I will not be surprised to see JCP report lower gross profit compared to a year ago.
    4 Feb 2014, 08:59 AM Reply Like
  • fuzzymc
    , contributor
    Comments (176) | Send Message
     
    Beating comps is good, beating Ron Johnson comps not very hard!!
    4 Feb 2014, 09:00 AM Reply Like
  • NoBrainer101
    , contributor
    Comments (5) | Send Message
     
    Any positive turnaround is good. Hope they can build up the momentum to accelerate the improvement.
    4 Feb 2014, 09:08 AM Reply Like
  • horsemanure
    , contributor
    Comments (20) | Send Message
     
    not surprised at the report as our local stores are busier since the changes, the cashiers tell us they are working more than a few years ago
    4 Feb 2014, 09:11 AM Reply Like
  • bebopr
    , contributor
    Comments (530) | Send Message
     
    WOW....query for the naysayers: Is there NOTHING positive about the Penney Q4 results? How about the 26% improvement in dot com sales.....not good?
    4 Feb 2014, 09:35 AM Reply Like
  • Qniform
    , contributor
    Comments (3475) | Send Message
     
    2% improvement on a truly disastrous comp? No mention of margin? Oh yes, that's just great. Really, it's hard to make a silk purse out of this sow's ear. But I'm sure that there a few here on SA who will try. Pre-market amateur hour reaction is already upside down.
    4 Feb 2014, 09:58 AM Reply Like
  • Hector V
    , contributor
    Comments (475) | Send Message
     
    >> Pre-market amateur hour reaction is already upside down.

     

    Bingo. Same thing happened when they announced the Nov comp.
    4 Feb 2014, 10:49 AM Reply Like
  • Qniform
    , contributor
    Comments (3475) | Send Message
     
    And the bull argument on a Q4 "positive" comp is now in pixel print here on SA. Every excuse in the book does not make a losing trade better. We really have a negative post Black Friday result despite having the very worst period in JCP history last year. It's astounding what denial can exist, but it is what is making my trade very profitable, I guess.
    4 Feb 2014, 01:48 PM Reply Like
  • Stan Ackman
    , contributor
    Comments (1238) | Send Message
     
    Fortunately, I made my bearish comment at 8:59 am when the JCP was up 4% premarket, showing I am not an amateur. Lol
    4 Feb 2014, 01:17 PM Reply Like
  • sfinvestor
    , contributor
    Comments (1239) | Send Message
     
    I absolutely love the creativity of the IR department

     

    "For the combined, nine-week November and December period, the Company reported comparable store sales growth of 3.1 percent over the same period last year. For the full quarter, comparable store sales - which exclude the 53rd week of fiscal 2012 - rose approximately 2.0 percent,"

     

    Very nice way to avoid negative numbers, but simple algebra and facts tells us
    November 10.1%
    Dec -1.1%
    Jan -2.4%

     

    based on 30%, 50% and 20% weighting for Nov-Jan respectively.

     

    investors are seeing "no turnaround" progress for JCP
    4 Feb 2014, 01:38 PM Reply Like
  • Hawkmkittie
    , contributor
    Comments (3) | Send Message
     
    I am a former Penney Company Associate with a total of 40 years in the retail industry. The few Penney stores I saw this past holiday season did not have enough merchandise to show a large sales gain. The stores all looked good, clean, good presentation and well staffed. They have to start somewhere and build for the for days ahead.
    4 Feb 2014, 09:53 PM Reply Like
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