Is J.C. Penney's Turnaround Plan Working?

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Aug. 20 (Bloomberg) -- Bloomberg's Poonam Goyal reports on J.C. Penney's second-quarter sales. She speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Welcome back.

I am emily chang.

Coming, 3 p.m. specific -- pacific, ugo mavs is integrating update -- google maps is integrating update today.

That is at 3 p.m. pacific.

And it is 56 past the hour which means bloomberg television is on the markets with olivia sterns.

Let's get you caught up on how the markets are trading right now.

U.s. stocks are climbing.

The s&p bouncing back from a six-week low.

All of the main indices are in the green.

The nasdaq is up 31 points.

The dow up about it the two points and the s&p is by about 11 points.

Strong results from retailers this morning really boosting sentiment.

With that in mind, stocks we are watching, they see penny, the numbers showing -- j.c. penney, the numbers showing declines are selling.

That is a sign mike ullman may be undoing the damage from the former ceo, ron johnson.

Another company, tjx, the chain is raising its full-year earnings forecast after earnings this morning topped estimates.

And those retailers are the focus of today's sector report.

Let's start with jcpenney.

What is your take away from today?

Is this proof the turnaround plan is working?


We saw they had a 5.5% decline in traffic, which is down from double digits earlier.

A definite improvement in terms of traffic coming into the stores.

Sales, 11.9%. you have not even see the private grants come into play.

You have not seen the home business turnaround.

Is there room for improvement?


They definitely have shown they have improved from where they were.

It is incredible.

Sales down five percent.

The big question around jcpenney right now, for many, is there cast position.

Talk to me about that.

Jpmorgan said they might have to ask for more credit by the end of the year.

It does not seem like they are hesitant to ask for more.

They ended the quarter with 1.5 billion dollars, just a little bit over that in cash.

They will and with $1.5 billion in liquidity.

Which is roughly a little more than a billion dollars in cash.

As long as sales continue to move upwards in terms of the trend, even though they do not get positive gains, they should be sound.

If sales deteriorate, we do not have a great holiday season, if it is time back to go and ask for more money.

Shares are up 10% since last week when we found out to bill ackman was leaving jcpenney's

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


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