J. C. Penney gave out the earnings and the stock rose by a small amount. Some analysts said the dealership was not doing as well as expected. The observation didn't mean much. Penney said sales of the same store for the year would be 7 to 8% for the fiscal year, which is no less than a disaster for a company that has closed sales for many years.
J.C. Penney shares are down 84% over the last five years and have been trading below $ 1 lately. Once among the nation's largest retailers, it has no compatibility to compete with powerful retail leaders such as Walmart, Target and even troubled Macy's. Penney's store count is only 850 now, having shot locations for over half a decade. By contrast, Walmart has over 5,000 in the United States
Penney's revenue is crashing as well. It fell 8.5% last quarter to $ 2.5 billion for the quarter. Net losses improved to $ 93 million from $ 1
The fictional view of Penney's possible success is that the results will not be worse. Jill Soltau, CEO of JCPenney, said when the earnings were released, "Going forward, I am confident that delivering our strategy, along with our ongoing discipline and commitment to improving the core elements of our business, will lead JCPenney to its "The rightful place" was overused by more powerful retailers a long time ago. In a retail world where store counts coincide with e-commerce muscle, Penney has no way back. Commenting on the numbers, said Neil Saunders, CEO of GlobalData, "However, the question is whether it has the resources and energy to complete the journey. There is a small chance that it can do so if it manages to improve the underlying trading enough to stabilize losses and makes a gradual reinvention of the brand by using online to boost sales. Unfortunately, in our view, the odds are stable against it. "
Penney is about to embark on a holiday that may be the last before it becomes a financial reorganization that will hack the store to count more and squeeze many of 95,000 employees without a job. Holidays mean discounts, to pull people through the door to retailers. Given that these people often buy items that are profitable while on the same visit, either to a store or an e-commerce site. Penney has very little resources to be in the loss management business. The balance is too badly damaged. However, it already offers 50% or more off some items.
Despite a little bit of optimism when Penney announced the revenue, the industry has seen this type of show again. It almost always ends badly.