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JC Penney Company's Stock Declines on Soft Holiday Sales
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Shares of J. C. Penney Company, Inc. declined 3.7% on Jan 6, 2017, following dismal holiday sales performance. The company’s comparable store sales declined 0.8% during the November and December period combined.
The decline was primarily due to the impact of challenging retail landscape, stiff competition from online retailers and waning store traffic. The company said that the first three weeks of November was especially challenging. During the holiday season the company saw robust performance from appliances, boots, outerwear, toys, fine jewelry and Sephora. However, sustained weakness in women’s apparel marred the company’s overall performance.
Meanwhile, J. C. Penney which is scheduled to report its fourth-quarter fiscal 2016 results on Feb 24, 2017, is quite confident of reporting fourth consecutive quarter of positive operating profit. The company reaffirmed its fiscal 2016 EBITDA target of $1 billion.
The company has taken up several strategic initiatives to drive traffic. J. C. Penney, in order to enhance customer shopping experience, has been focusing on remodeling, renovating and refurbishing its stores with special focus on enhancing high-margin center core department that houses handbags, fashion accessories, sunglasses and fashion jewelry.
The above mentioned strategic initiatives have helped the company to outperform the Zacks categorized industry in the past one year. The company’s shares have gained 3.7% in the past one year, whereas the Retail Regional Department Store industry has declined 19%.
Apart from J. C. Penney, Macy's, Inc. (M - Free Report) , Gap (GPS - Free Report) and Kohl’s (KSS - Free Report) came out with their holiday sales numbers. Macy’s comps, on an owned plus licensed basis, decreased 2.1% during the combined period of November and December; while on an owned basis, comparable sales fell 2.7%. We noted that Kohl’s Corporation comps declined 2.1%, whereas The Gap Inc’s comps rose 2% during the holiday season.
J. C. Penney currently carries a Zacks Rank #3 (Hold).
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JC Penney Company's Stock Declines on Soft Holiday Sales
Shares of J. C. Penney Company, Inc. declined 3.7% on Jan 6, 2017, following dismal holiday sales performance. The company’s comparable store sales declined 0.8% during the November and December period combined.
The decline was primarily due to the impact of challenging retail landscape, stiff competition from online retailers and waning store traffic. The company said that the first three weeks of November was especially challenging. During the holiday season the company saw robust performance from appliances, boots, outerwear, toys, fine jewelry and Sephora. However, sustained weakness in women’s apparel marred the company’s overall performance.
Meanwhile, J. C. Penney which is scheduled to report its fourth-quarter fiscal 2016 results on Feb 24, 2017, is quite confident of reporting fourth consecutive quarter of positive operating profit. The company reaffirmed its fiscal 2016 EBITDA target of $1 billion.
The company has taken up several strategic initiatives to drive traffic. J. C. Penney, in order to enhance customer shopping experience, has been focusing on remodeling, renovating and refurbishing its stores with special focus on enhancing high-margin center core department that houses handbags, fashion accessories, sunglasses and fashion jewelry.
The above mentioned strategic initiatives have helped the company to outperform the Zacks categorized industry in the past one year. The company’s shares have gained 3.7% in the past one year, whereas the Retail Regional Department Store industry has declined 19%.
Apart from J. C. Penney, Macy's, Inc. (M - Free Report) , Gap (GPS - Free Report) and Kohl’s (KSS - Free Report) came out with their holiday sales numbers. Macy’s comps, on an owned plus licensed basis, decreased 2.1% during the combined period of November and December; while on an owned basis, comparable sales fell 2.7%. We noted that Kohl’s Corporation comps declined 2.1%, whereas The Gap Inc’s comps rose 2% during the holiday season.
J. C. Penney currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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