Is Best Buy’s Turnaround a Lesson for J.C. Penney?

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Nov. 20 (Bloomberg) -- Bloomberg Industries retail analyst Poonam Goyal examines third-quarter results for J.C. Penney. She speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Jcpenney and the different efforts to turn themselves around, is there any enduring lesson for jcpenney from best buy?

One key takeaways jcpenney had the -- jcpenney did not have the higher end customer where is best buy did.

Jcpenney, third-quarter adjusted loss of $1.81 a share.

Does not compare with the consensus estimate of a loss of $1.74. comparable sales in terms of an outlook -- it season increase versus the third quarter.

But in the third-quarter comparable sales did fall 4.8%. you are looking at gross margin.

Jcpenney said fourth-quarter gross margin will improve versus the third quarter.

In general comments about gross margin.

It had already fallen to below 30%. on a nine percent last quarter and it has fallen 600 basis point the first half of the year -- 29% last quarter.

Gross margins were 23% last year so there is no doubt we should the expansion the fourth quarter.

Gross margin for the quarter, 29.5%. sales were positive but you have to assume some of the comps in october had to come at the expense of margins.

Four q -- 4q will be easy, 3q not so great.

We will see if there is sustainability for margins and growth at the level.

You see in the earnings report what you don't see normal companies putting out.

$1.2 billion in cash and cash equivalents.

They expect about $2 billion in liquidity at the year end.

Worried about cash burn.

The end it 2q and 1.5 billion -- at 1.5 billion, now they are at 1.2. around $2 billion -- they estimated it to be over $2 billion so it is quite a very -- it is a little bit of a downtick.

A quick data check.

Markets are not taking the earnings reports we have had today as an indicator one way or another.

S&p you just, as you can see, off just a little bit -- s&p futures, as you can see, off just a little bit.

10-year note yield little change.

The dollar at the moment is

This text has been automatically generated. It may not be 100% accurate.


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