Is JCPenney Still On Its Death Bed?
JCPenney (JCP) is still working to emerge from the weak retail landscape to let its 25% market coverage of shoppers in America know, that the retailer's brand is still going strong. In July, Mandy Ginsberg, the chief executive officer of The Princeton Review, was elected to its board of directors. It is positive news for the department-store chain's omni-channel retail growth. Shares of JCPenney closed at $8.20 as of Wednesday. Now check out some fundamentals:
- EPS is $-1.92.
- Total market capitalization of $2.78 million and a total of 305.43 million outstanding shares.
- Volume of 931,771 shares.
"JCPenney is a leader in omnichannel retail, and understands the importance of adapting the shopping experience to cater to today's digitally savvy customer," said Thomas Engibous, chairman of the JCPenney board of directors.
The company also introduced a dedicated Juniors Plus assortment to 200 of its stores.
Weak results are still the blame for retail.
Retail sales at U.S. retailers dropped unexpectedly last June, leaving investors questioning the strength of consumer purchases for the following quarter. Purchases decreased 0.3 percent after a 1 percent advance in May that was smaller than previously reported, according to the U.S. Commerce Department.
Zacks Analyst report indicates looking on the brighter side. Zacks Ranked JCPenney as #1 (Strong Buy) on Friday. J.C. Penney operates 1,020 apparel and home furnishing stores across the United States. It also operates jcpenney.com web site. The stock is expected to grow earnings by the double digits both this year and next.
For fiscal 2015, Zacks indicated that the estimate jumped to a loss of $1.30 from a loss of $1.50 in the last 90 days. JCPenney's earnings growth of 51.3% as it lost $2.67 in fiscal 2014. For fiscal 2016, the estimate has jumped to a loss of $0.63 from a loss of $0.76 in the last 3 months, according to the Investment Research firm.
After some glimpses of recent indications of progress improvements and business turnarounds, investors should still not give up that JCPenney has yet to win the race for winning the hearts of Middle America shoppers. The retailer is still poised to move in the right directions with its losses getting fewer.