Summary:
J. C. Penney delivered impressive comparable-store sales performance for the crucial holiday season. Comps for the combined November and December period grew 3.7%. Management now expects fourth-quarter fiscal 2014 comps to be at the higher end of its previously provided guidance of 2%-4%. J. C. Penney's endeavors to recoup and give itself a major facelift seem to be paying off well, and are not shoddy as perceived when it reported flat comps for the third quarter after registering growth of 6%, 6.2% and 2% in the trailing three quarters. The company has brought back promotions, and is focusing on improving assortments, better marketing strategy and rewards program to drive sales. However, management was tight lipped about margins, which draws some concern as the holiday season was a highly promotional one. Currently, we stay Neutral on the stock.
Overview:
Founded in 1902 and based in Plano Texas, J. C. Penney Company, Inc. through its wholly-owned subsidiary J. C. Penney Corporation, Inc. offers merchandise and services to customers through its department stores, catalogs and website. The company operates stores at both mall and off-mall locations. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora shops (located inside J. C. Penney stores), and home furnishings. The company began opening Sephora departments in October 2006. The company's department stores also offer a variety of services, which include styling salon, optical, portrait photography, and custom decorating. Through its integrated channels, the company provides a wide range of national and private brands.
One of the America's leading retailers, J. C. Penney, currently operates approximately 1,060 department stores. The company also operates one of the largest apparel and home furnishing sites, jcp.com, and general merchandise catalog business.
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