J.C. Penney: No Change To Its Trajectory Yet, For Better Or For Worse

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About: J. C. Penney Company, Inc. (JCP)
by: Elephant Analytics
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Summary

J.C. Penney remains on the same trajectory as before, with its holiday sales results making little case for a change in trajectory.

It does need to move to a new trajectory of rapidly improving comps soon, though, given that a large amount of first-lien debt becomes due in 2023.

Gross margin improvement isn't enough on its own, and J.C. Penney will probably need 3+% improvement in net sales by then as well.

2020 bonds are still pricing in a high likelihood of being repaid, and have not changed in price much recently.

J.C. Penney's 2020 guidance should have a significant effect on the price of its securities.

J.C. Penney's (JCP) holiday sales performance wasn't strong, but one couldn't really say that its performance has fallen off of its previous trajectory. The problem for J.C. Penney is that there is no