Wed, Jan. 7, 9:20 AM
Tue, Jan. 6, 8:30 PM
- Shares of J.C. Penney (NYSE:JCP) reached as high as $7.90 in AH trading after the company topped the holiday same-store sales estimates of analysts.
- The stock hasn't traded over $8 since early December as short interest built up ahead of the holiday report.
- Per the norm, bulls and bears are battling it out on JCP. Bulls are lauding management for turning the retailer solidly in the right direction, while bears such as Imperial Capital's Mary Ross Gilbert claim margin-crunching promotions drove the sales gain.
- What to watch: JCP's free cash flow mark at the end of Q4 will be closely-analyzed.
- Sector fallout: Belus Capital's Brian Sozzi thinks the JCP result indicates other department store chains (JWN, KSS, DDS, M) are also poised to best consensus holiday SSS estimates.
- Previous on JCP: Sterne Agee warns, holiday sales report.
Tue, Jan. 6, 5:35 PM
Tue, Jan. 6, 4:35 PM
- J.C. Penney's (NYSE:JCP) comparable store sales rose 3.7% Y/Y in the nine-week November/December period.
- The retailer now expects to report FQ4 (ends in January) comps "at the upper end" of its 2%-4% guidance range, thereby putting the number above a 2.9% consensus.
- With 103.9M shares (36% of the float) shorted as of Dec. 15, major short-covering could be on tap.
Tue, Jan. 6, 11:35 AM| 24 Comments
Dec. 18, 2014, 7:01 AM
- Apparel prices fell 1.1% in the U.S. during November, according to yesterday's CPI report.
- The drop followed a 0.2% slide in apparel prices for October.
- Retail analysts note that a higher mix of e-commerce sales and the lingering promotional haze threaten margin expansion in the sector, despite overall tighter inventory control.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, RL, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, KORS, UA, GIII, SQBG, HBI, SKX, FL, VRA, ICON, NKE, WWW, DECK, CROX, SHOO, BWS, PERY, DXLG, SHLD, BONT, GPS, GES, URBN.
Dec. 12, 2014, 10:17 AM
- The S&P Retail ETF (XRT +0.5%) is out ahead of market averages again on enthusiasm over consumer spending forecasts.
- Today it's apparel/footwear sellers and department store chains with the broad set of gains.
- Gainers: Lululemon (NASDAQ:LULU) +2.7%, Ralph Lauren (NYSE:RL) +1.0%, Under Armour (NYSE:UA) +1.1%, Sequential Brands (NASDAQ:SQBG) +0.7%, Michael Kors (NYSE:KORS) +0.5%, Coach (NYSE:COH) +2.3%, Nike (NYSE:NKE) +0.7%, Deckers Outdoor (NYSE:DECK) +1.1%, Macy's (NYSE:M) +2.4%, Sears Holdings (NASDAQ:SHLD) +1.7%, J.C. Penney (NYSE:JCP) +1.5%, Nordstrom (NYSE:JWN) +0.8%.
Dec. 11, 2014, 9:30 AM
- Retail sales struck their biggest gain since March on broad strength.
- What's working: Strong growth was seen in auto parts (PBY, ORLY, AZO, AAP, MNRO) with the broad parts category showing year-over-year sale growth of over 8% in November. Sales were up 6.8% Y/Y for health and personal care stores (ULTA, SBH, CVS, WAG, RAD) during the month.
- What's not working: Department stores (DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN) went backwards with sales off 1.1% from a year ago. No surprise, but sales at gas stations (CASY, KR, PTRY) also fell off from a year ago.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK.
Dec. 10, 2014, 10:47 AM
- J.C. Penney (JCP -1.5%) says it plans to upgrade its mobile app.
- The investment would appear to be well-justified after J.C. Penney reported close to half of all its Cyber Monday sales were made via smartphone.
- What to watch: The recent trend of shoppers using mobile apps to compare prices has increased the need for sophisticated pricing algorithms on the back end.
Dec. 9, 2014, 10:33 AM
- J.C. Penney (JCP +2.4%) gets a lift after Piper Jaffray names it one of its top retail picks for 2015.
- The mini-rally has only gone part of the way to make up for yesterday's slide after Maxim Group analyst Rick Snyder took some shots at the department store chain.
- Snyder on JCP: "J.C. Penney had little traffic, so little that if one was unaware of the calendar, it would be difficult to guess that it is the holiday season."
- Piper's take on JCP centers on the levers it can pull to improve fundamentals and cash flow.
Dec. 4, 2014, 10:31 AM
- Shares of Destination Maternity (DEST -7.8%) slide after the company misses earnings estimates.
- A frank assessment from the company on a misfire with its assortment to millennial-aged moms-to-be strikes a bit of a chord across the apparel and department store sector.
- Many of the earnings hits and misses this quarter have been tied to on-trend or off-trend assortments. A millennial group which is hard to nail down is becoming a bigger part of that puzzle.
- Apparel stocks: KATE, ANN, LULU, RL, PVH, VNCE, CRI, UA, HBI, VFC, COLM, KORS, GIL, SQBG, JCP, KSS, DDS, M, JWN, RL, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, KORS, UA, GIII, SQBG, HBI, SKX, FL, VRA, ICON, NKE, WWW, DECK, CROX, SHOO, BWS, PERY, DXLG, SHLD, BONT, GPS, GES, URBN, TJX.
Dec. 3, 2014, 10:37 AM
- Shares of J.C. Penney (JCP -3.8%) fall after Goldman Sachs cuts its rating on the department store operator to Sell from Neutral.
- The retailer's comp sales and e-commerce trail rivals despite bumping up against soft comparables, notes GS.
- Pressure from discounters appears to be hampering the JCP turnaround.
- A gloomy $5 price target on JCP is set by the investment firm.
Dec. 3, 2014, 9:09 AM
Dec. 2, 2014, 1:05 PM
- A technical breakdown on the performance of retail e-commerce sites for Black Friday and Cyber Monday reveals some winners and losers.
- Sears (NASDAQ:SHLD), Costco (NASDAQ:COST), Office Depot (NASDAQ:ODP), REI, Saks and NewEgg drew high marks for using responsive web design to create a seamless mobile experience for users.
- Costco and Sears were also on a list of fastest sites - along with Barnes & Noble (NYSE:BKS), W.W. Grainger (NYSE:GWW), Williams-Sonoma (NYSE:WSM), and Hennes & Mauritz (OTCPK:HMRZF).
- The extended holiday was more uneven for Best Buy (NYSE:BBY), Staples (NASDAQ:SPLS), Cabela's (NYSE:CAB), and Forever 21 which had painful outages or slow performance times.
- J.C. Penney (NYSE:JCP) was reported to have had a temporary mobile glitch which caused a slowdown, but also ended up on a list of top website performers.
Dec. 1, 2014, 7:50 AM
- Comscore estimates e-commerce spending rose 32% on Thanksgiving Day to $1.01B and 26% on Black Friday to $1.51B.
- Most retail analysts are sticking with their forecast for 4.0%-4.5% growth for holiday sales this year, with early shopping and e-commerce making up for a dip in store traffic on Black Friday.
- Apparel sellers in particular came out with a stronger online push this year.
- Related stocks: OTCPK:AMZZ, EBAY, AEO, ANF, JCP, JNY, JWN, KSS, LB, M, URBN, PSUN, BKE, WTSL, GPS, FDX, UPS, DKS, BBY, LULU, KATE, VRA, SPLS.
Nov. 28, 2014, 12:07 PM
- J.C. Penney (JCP +3.7%) says a strong start to the Black Friday shopping weekend leaves it "well-positioned" to compete for the duration of the holiday period.
- The company struck more sales than a year ago with its 5:00 p.m. opening time on Thanksgiving an obvious significant factor.
- Hot categories included kitchen electrics, towels, fine jewelry, sleepwear, and Disney toys and apparel (a common theme across retail).
- Some independent channel checks are less rosy, citing JCP as having only moderate traffic compared to some peers.
JCP vs. ETF Alternatives
JC Penney Co Inc sells merchandise and services to consumers through department stores and website at jcpenney.com. Its products include family apparel and footwear, accessories, fine and fashion jewelry, beauty products and home furnishings.
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