JC Penney (JCP) Improves Outlook
Shares of JC Penney Company Inc. (JCP) closed up +0.06 or +0.78 percent to $7.77 per share on Tuesday, after having traded as high as $8.24 intraday. The stock was affected by the company releasing some financial information ahead of its fiscal third quarter earnings results to be released next month. JC Penney stock has fallen drastically, losing over -40 percent in the last two weeks and -67.57 percent since October 8th, 2012.
The company is planning a secondary offering in the hopes of raising $1 billion; nevertheless, the stockâ s reaction to yesterdayâ s positive news was disappointing at best. Daily Chart
Plano, Texas based JC Penney Company Inc. is a holding company operating over 1,100 department stores in 49 of the United States and Puerto Rico. In addition, the company sells products over its Internet website at jcp.com. JC Penney is trying to rebound from a $985 million loss and return to profitability after a failed turnaround attempt was made by former Apple Inc. (AAPL
) executive, Ron Johnson. Johnson was ousted by Penneyâ s board in April after working as CEO for the company since November of 2011. Tuesdayâ s announcement revealed store revenues for outlets open at least one year fell by four percent in September versus one year ago. Nevertheless, the number was +5.8 percentage points better than the figure for August. The retailer also reported improvements in its online sales, with a +25.3 percent rise in September adding to a +10.8 percent August gain. For the companyâ s third quarter, total online sales have increased a total of +18.6 percent. . Two weeks ago, JC Penney announced a secondary offering with plans to sell as many as 96.6 million shares of common stock. The company now anticipates over $2 billion in yearend liquidity after a stock offering of 84 million shares that would bring in approximately $785 million, which was announced last week. In addition to the additional financing, JC Penney has recently filled several key positions inside the company including Jan Hodges to SVP, GMM of Home, Scott Laverty to EVP, chief information officer and Katheryn Burchett to SVP of Property Development. Mike Ullman, JC Penneyâ s CEO since April reiterated, â
Published on Oct 9, 2013
By Jay Hawk