J.C. Penney (JCP): Q1 EPS of -$0.25 misses by $-0.15. Revenue of $3.15B misses by $0.3B....


J.C. Penney (JCP): Q1 EPS of -$0.25 misses by $-0.15. Revenue of $3.15B misses by $0.3B. Discontinues $0.20 quarterly dividend. Shares -14.5% AH. (PR)
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Comments (9)
  • BlueCollarBlueDog
    , contributor
    Comments (107) | Send Message
     
    Excellent. A few more points and I'm on it.
    Yes, the middle class retailer is taking it on the chin,
    while the uppper end and lower end are getting the business.
    But, when it settles, the middle class are still the red cells
    in the blood stream. On-line Levis purchases? Nope, been
    screwed, I go to Penneys. James Cash had the right idea,
    markets will peak and trough, but JC Penneys is my kinda store.
    15 May 2012, 05:43 PM Reply Like
  • $CLU
    , contributor
    Comments (264) | Send Message
     
    The questions is:
    Does this represent the results of actions by the new CEO?
    (Eliminating sales and confusing customers who were used to timing their buying habits.)
    Needs further study on the issue and comment by the company.
    15 May 2012, 06:31 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
     
    It's still in transition, but I am wondering if the commercials were not too confusing themselves? I didn't get it until the one about 15.99 pence, then I was like, ohhh its a round number on prices.
    16 May 2012, 01:38 AM Reply Like
  • sydneyrollock
    , contributor
    Comments (102) | Send Message
     
    The new strategy may be right, however the execution was not fully integrated across the marketing mix. The new advertising campaign was too much like a Target ad and was not breakthrough in communicating the new Penny.

     

    The new campaign did not leverage the icon JC Penny, but instead subtlety rebranded the company as JCP in the logo.

     

    Still early in the transition, but strategy needs be more integrated communicating the key "Whys" to their primary target and heavy users.

     

    Did not help that they cut the dividend without an adequate integrated communication strategy tied to the transition.
    16 May 2012, 05:36 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
     
    Initial ad campaign was terrible...the humor wasn't there, but Ellen did help later on. the Apple marketing genius is not translating.
    16 May 2012, 05:47 AM Reply Like
  • Market Trends Investor
    , contributor
    Comments (1266) | Send Message
     
    They better hold on to the mid-line consumer. That was their niche. They will get creamed if they aim the customer base too low. Target and the others will kill them. Lower margins down in the lower end too. I think they are making a big mistake in the long run.
    16 May 2012, 08:30 AM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    J.C. Penney , the staid conservative U.S. Retailer went with the "lower-case font, bright colors with little substance gay spokesperson" model.

     

    It didn't work - go figure.
    16 May 2012, 10:57 AM Reply Like
  • TomL99
    , contributor
    Comments (8) | Send Message
     
    It's always fascinating to see the type of expertise that companies hire in their CEO's. I'm not in retail, but it would seem to be almost a necessity that the new CEO of JCP would have come from the world of soft goods. There are some nuances here that might not be apparent to him. The merchandise, the customers, the sales staff -- they're all different from Apple.
    16 May 2012, 11:44 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
     
    Remember how investors rewarded this stock when the guy got hired. Even Cramer was skeptical that he could translate the marketing of AAPL with JCP retail, its not working. JCP is know as cheap as dirt, you go there for your weekend or at home clothes, not fashion.
    16 May 2012, 02:40 PM Reply Like
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