Fri, Aug. 26, 10:03 AM
- There are two positive trends working for J.C. Penney (JCP +0.9%) with rivals such as Macy's and Sears exiting from many malls.
- The company should see more leverage in in negotiating rent in certain malls and can lap up the extra sales from the reduced physical footprint of the department store group.
- Sephora, home furnishings, and appliances are three key areas of focus for JCP as it sticks to CEO Marvin Ellison's plan.
Thu, Aug. 25, 2:42 PM| Thu, Aug. 25, 2:42 PM | 5 Comments
Thu, Aug. 18, 9:33 AM
- J.C. Penney (JCP +0.2%) unveiled a detailed update on strategy and financial targets, but what it didn't do is announce more store closings like major retailers such as Macy's and Wal-Mart.
- The company, which closed 48 stores between 2015 and the first part of 2016, intends to use its real estate footprint to complement its e-commerce business. A larger focus on selling appliances also requires the brick-and-mortar presence.
- "The appliance market is expected to grow at 30 percent over the next three years," CEO Marvin Ellison noted to CNBC. "There's not many retail categories that have that type of growth predictions or trajectory over the next three years."
- Previously: J.C. Penney talks future strategy at Analyst Day (Aug. 17)
- More on JCP's Analyst Day at RetailDive.com.
Wed, Aug. 17, 5:01 PM
- J.C. Penney (NYSE:JCP) discloses a series of top priorities as part of its Analyst Day presentation.
- The company thinks it will have a strategic advantage in special sized apparel, home furniture/appliances, and beauty (Sephora/The Salon).
- On the e-commerce side, more stores are up to speed for same-day pickup and to process ship-to-store orders.
- Long-term financial targets were also set by the department store operator. Comparable sales growth of 3% is expected for 2017 to 2019 and EPS is seen rising to a range of $1.40 to $1.55 by 2019.
- JCP press release
- JCP is -0.28% AH to $10.72 or about 7X the top end of the long-term EPS target.
Wed, Aug. 17, 11:16 AM
- Soft earnings reports from Target, Lowe's, and Staples are tainting the retail sector today.
- A loose theme among the trio is that they are feeling the impact of general store traffic pressure on one front and under-performing Amazon on the e-commerce side (or Home Depot in the case of Lowe's).
- Notable movers include Office Depot (ODP -7%), Pier 1 Imports (PIR -2.7%), Haverty Furniture (HVT -1.1%), Sears Holdings (SHLD -6.5%), Stage Stores (SSI -3%), Nordstrom (JWN -2.4%), Tilly's (TLYS -0.8%), Zagg (ZAGG -2.7%), Party City (PRTY -1.3%), J.C. Penney (JCP -4.4%), Restoration Hardware (RH -4.1%) Bed Bath & Beyond (BBBY -1.9%), Williams-Sonoma (WSM -2.8%), and Kohl's (KSS -2.3%),
- Looking ahead, Wal-Mart (WMT -0.3%) reports earnings tomorrow before the bell. The same-store sales bar is relatively low after the company guided for a 1% gain for U.S. SSS and with the consensus estimate of analysts even lower at +0.9%. Perhaps more important than Q2 numbers will be the comments from Wal-Mart management on the Jet.com integration and the impact of higher base wages.
Mon, Aug. 15, 3:01 PM
- Moovweb CEO Ajay Kapur believes J.C. Penney (JCP +6.5%) could drive mobile sales higher through a partnership with Apple Pay.
- "It takes first-time shoppers 2:07 minutes to check out on J.C. Penney’s mobile site. Now imagine if that was reduced to 30 seconds, or required only a thumbprint? The results could be astronomical," notes Kapur.
- Shopping cart abandonment by consumers due to misbehaving mobile apps is considered a nagging issue across some parts of the retail sector. Moovweb thinks the lost opportunity could run as high as $4.8M for JCP this quarter.
- Previously: J.C. Penney on the move ahead of analyst day (Aug. 15)
Mon, Aug. 15, 10:35 AM
- J.C. Penney (NYSE:JCP) is up 5.03% to climb over the $11 level for the first time since March 31.
- A key point from the company's Q2 report issued last week was the backing of JCP's $1B FY16 EBITDA guidance. This week, J.C. Penney hosts its first analyst day since 2014 during which more details on EBITDA targets are expected to be revealed.
- Over the weekend, several Seeking Alpha contributors dived into J.C. Penney's financials to issue new outlooks for investors to digest.
Fri, Aug. 12, 11:50 AM
- J.C. Penney (NYSE:JCP) is at a multi-month high after today's earnings report and yesterday's Macy's store-closing reveal pushes shares back over $10.
- Sephora and JCP's new online pickup program helped drive the company to the only positive comparable sales growth mark in the department store sector this quarter.
- Previously: J.C. Penney slips in early trading after earnings (Aug. 12)
Fri, Aug. 12, 7:43 AM
- J.C. Penney (NYSE:JCP) reports same-store sales rose 2.2% in Q2.
- The best performing categories during the quarter were Sephora, home, footwear, and handbags.
- Gross margin rate improved 10 bps to 37.1%.
- SG&A expenses fell 210 bps to 29.2% of sales as corporate overhead was lowered and more store costs reined in.
- The company ended the quarter with an inventory position of $2.981B, down 1% from a year ago.
- J.C. Penney expects comparable-store sales to increase 3% to 4% for the full year. The company expects EPS to be positive for 2016. Looking ahead to next year, J.C. Penney sees $1B in EBITDA being generated.
- Previously: J.C. Penney beats by $0.10, revenue in-line (Aug. 12)
- JCP -2.41% premarket to $9.70.
Fri, Aug. 12, 7:35 AM
Thu, Aug. 11, 5:30 PM
Thu, Aug. 11, 11:21 AM
- Macy's (M +15.5%) CEO Terry Lundgren delivered some very direct analysis on the overcapacity of physical department stores in the U.S. during his round of media appearances today following the company's store-closing announcement.
- "In the U.S. there's 7.3 square feet per human being of retail space. That's just ridiculous when you consider in U.K. it's 1.3 in France it's 1.7 in Japan its 1.7." noted Lundgren.
- "We have 5.5 times the number of retail physical locations in America per capita than any country in the world and so there has to be a rationalization," he added.
- Another obvious point from the exec was the bottom line benefit of removing the most unprofitable stores from the base.
- Earlier today, Bloomberg Gadlfy posted a very revealing bar graph showing how many stores would need to be closed for certain retailers to achieve their sales per square foot level of 2006 (h/t Shelly Banjo). Shareholders of Bon-Ton Stores (BONT +1.7%), Dillard's (DDS +6.1%), Nordstrom (JWN +6.6%), J.C. Penney (JCP +6.8%), and Sears Holdings (SHLD +2.9%) may want to sneak a peek.
Thu, Aug. 11, 9:15 AM
Thu, Aug. 11, 8:44 AM
- The department store sector is on watch for volatility after stronger-than-expected results are posted at both Kohl's and Macy's.
- Beyond the earnings numbers, the headline story may be the plan by Macy's to close 15% of its full-line stores.
- J.C. Penney (NYSE:JCP) is up 5.14% premarket, while Nordstrom (NYSE:JWN) is 5.13% higher. Dillard's (NYSE:DDS), Sears Holdings (NASDAQ:SHLD), Stage Stores (NYSE:SSI), Bon-Ton Stores (NASDAQ:BONT) are inactive in the premarket session.
- Previously: Kohl's rallies after earnings and guidance impress (Aug. 11)
- Previously: Macy's soars after earnings beat and store trimming plan fires up investors (Aug. 11)
Wed, Aug. 3, 9:58 AM
- Shares of J.C. Penney (JCP -5.4%) are lower after OTR Global downgrades the department store stock to Negative.
- Weak earnings reports from Crocs and Kate Spade are also adding an element of distrust in retail stocks today.
- J.C. Penney is due to report Q2 earnings on August 12. If investors are looking for a sliver of good news, last week a Jefferies survey tipped off that JCP was adding market share in the back-to-school season.
Fri, Jul. 22, 9:38 AM
- The Dallas Morning News has pictures of what the new appliances section at J.C. Penney (JCP) looks like at eight stores around the Dallas-Ft. Worth area.
- J.C. Penney is adding appliance sections to 500 stores by this fall in an effort to turbocharge home department sales. Early tests of the initiative have been positive.
- Appliance selling fell by the wayside during the Ron Johnson era when the department store chain veered into a strategy to divides its stores by brands and dial back promotions.
- Sector watch: Sears (NASDAQ:SHLD) and Kmart stores could feel an impact from the appliances bet by JCP, Best Buy (NYSE:BBY) is also increasingly active in the appliances category.
J. C. Penney Co., Inc. operates department stores, which consist of selling merchandise and services to consumers through its department stores. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings. The... More
Industry: Department Stores
Country: United States