- Channel checks from Deutsche Bank indicate J.C. Penney (JCP -2.5%) offered deeper discounts on its Mother's Day promotions this year than last.
- The read raises some concerns inventory backlog could be an issue at the company coming off of slow winter traffic.
- What to watch: JCP reports earning tomorrow with analysts forecasting a $1.25 per share loss on $2.71B in sales. Citi thinks comp sales growth will come in at 3% to 5% for the quarter. Guidance for Q2-Q3 comp growth of over 7% could give shares a lift. Q&A during the firm's earnings call on current inventory could also be a factor.