J.C. Penney Comparable Sales Up 2%

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Feb. 26 (Bloomberg) –- Bloomberg’s Julie Hyman reports on J.C. Penney earnings. She speaks with Matt Miller, Trish Regan and Olivia Sterns on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Quarter after quarter we have been seeing the sales falling and big decreases to boot.

This two percent increase in sales is in line with estimates, they are now saying that in the first quarter their comparable sales will rise again.

You are coming from a really low base here where they lost a lot of customers and traffic and sales.

So, that is what they are coming out with on that side of the company.

They are also saying that they are losing more than was estimated, coming in at $.86. you know that matt and i always talk about companies managing expectations, but the traffic trends really are important.

Good companies manage expectations, right?

Sales in the mid-single digits, i think i will keep going to see if we have numbers in terms of liquidity and cash position, because that is key here.

The company's business has to turn around enough so that is not out of cash by the end of the year.

That is the big concern.

If you get a two percent number, is that enough?

You need to see an acceleration.


But in the first quarter they say they will be picking up a low base on the first quarter sales.

What were the numbers like?

How could you not do better, seriously?

Two percent?

From such a horrible year last year?

Three percent of five percent?

The comps were down early two percent last year.

To see a two percent rise after that kind of a plunge, you are looking at a progression that we have seen getting better.

They say that the liquidity is going to be over $2 billion by the end of the year.

In theory, if people take them seriously, that is better than analysts have been looking for.

You can see the stock benefiting from these headlines coming out.

By the way, just this year the stock, not even two months of 20, down 37%. we have seen a plunge bumping up the end of the day.

Think about that, that is the plunge we have seen, the pessimism baked into this retail.

The question is -- is there a place for jcpenney in the american landscape?

A place for sears, which comes out tomorrow morning, in the american landscape?

There could have been.

You have the luxury on the lower end with everything else being the online trend.

If you are that middle-of-the-road retailer?

There isfor you to be there.

Array was on earlier and he was saying -- would customers really be devastated if sears or jcpenney disappeared?

Absolutely not.

I like sears.

You can buy tools there.

But you can buy those at home depot.

One of our cameramen went out today to take some footage of the sears in new jersey.

It was a smaller format store.

He went into the store, did not hear -- see any people but heard a clicking sound.

There was a man working out on the workout equipment in the store.

Working out because no one is around.

He went to the front of the stores, there was one saleswoman.

Those were the two living human beings.

Not even enough salespeople to police the fact that people are working out on -- on their exercise equipment.

Which kind of says it all, right?

Jcpenney is sort of in the same boat.

It brings up a whole other issue, by the way, on activism.

Did bill ackman put the nail in the coffin with this one?

Let's be clear about something having to do with jcpenney, jcpenney was in trouble before ron johnson came in.

Maybe he exacerbated -- not maybe, he exacerbated the troubles, but it was already troubled when he came in.

We should make that clear as well.

All right, let's talk about another retailer that is having some troubles moving packs their

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


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