Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  J C Penney Company Inc    JCP

Delayed Quote. Delayed  - 01/19 10:05:22 pm
6.69 USD   -1.76%
01/19DJHoliday Sales Sap Target -- WSJ
01/19 MACY : Film/Video
01/17 NIKE : Jcpenney underscores commitment to activewear with launch of ..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

J.C. Penney stock has worst fall ever

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/17/2012 | 02:04am CET

J.C. Penney Co Inc (>> J.C. Penney Company, Inc.) shares plunged nearly 20 percent on Wednesday, their worst decline ever, wiping away $1.43 billion in market value a day after the retailer shocked Wall Street with a much worse-than-expected drop in sales and by scrapping its dividend.

J.C. Penney Co Inc (>> J.C. Penney Company, Inc.) shares plunged nearly 20 percent on Wednesday, their worst decline ever, wiping away $1.43 billion in market value a day after the retailer shocked Wall Street with a much worse-than-expected drop in sales and by scrapping its dividend.

A number of leading Wall Street firms also lowered their price targets on the company.

Penney shares closed down $6.57 at $26.75 on the New York Stock Exchange. The decline was the worst percentage decline since the company listed its shares on the exchange in 1929, according to Center for Research in Security Prices at the University of Chicago Booth School of Business.

The move pushed the stock well below the $30.11 closing price on June 13, the day before it named Apple Inc (>> Apple Inc.) retail store head Ron Johnson as chief executive.

The retailer said on Tuesday after the stock market close that sales at stores open at least a year fell 18.9 percent in the first quarter, which coincided with the kickoff of its multi-year overhaul, and reported a loss, missing Wall Street estimates on both counts by a wide margin. The company also scrapped its dividend.

JP Morgan cut its price target on Penney's shares to $40 from $49, Goldman cuts its target to $31 from $35, and Citi lowered its target to $40 from $50.

Option turnover was 6.7 times the average daily levels with 129,000 puts and 67,000 calls traded in Penney, according to option analytics firm Trade Alert.

Investors often turn to equity puts, granting them the right to sell shares at a fixed price any time until expiration, to speculate on potential weakness in the stock or to protect an existing long position in the shares.

Penney is in the process of a multi-year transformation, beginning with a new pricing strategy that eschews the use of coupons and sales events in favor of everyday lower prices on most items.

Johnson told analysts at a meeting on Tuesday that the company had not adequately conveyed to shoppers, accustomed to discounts, the benefits of its pricing strategy.

Deutsche Bank analyst Charles Grom said in a research note that Johnson "strongly believes that same store sales will be positive by February 2013."

Barclays analyst Robert Drbul lowered his full year profit estimates, citing the efforts Penney will need to exert "to re-educate the JCP consumer away from coupons and discounts."

Johnson faulted the company's advertising.

"It is not doing the hard work we need it to do right now," Johnson conceded.

Penney's ad campaign has featured comedienne Ellen DeGeneres and been designed to entertain and change the chain's image, rather than emphasize merchandise.

But in April, Penney started running ads called "Do the Math," which uses a summer dress to illustrate how its everyday lower price comes out to less for a shopper than a sale and a coupon.

The next phase of the transformation will come in August when the first of the 100 boutiques each store will house are unveiled. At Tuesday's analyst meeting, Penney announced deals with designers like Vivienne Tam, Betsey Johnson and Michael Graves.

Penney's largest shareholder, William Ackman, on Tuesday reiterated his support for Penney's efforts during its multi-year turnaround.

(Reporting by Phil Wahba in New York, additional reporting by Doris Frankel and Brad Dorfman in Chicago; Editing by Leslie Gevirtz and Phil Berlowitz)

Stocks treated in this article : Apple Inc., J.C. Penney Company, Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on J C PENNEY COMPANY INC
01/19DJHoliday Sales Sap Target -- WSJ
01/19 MACY : Film/Video
01/17 NIKE : Jcpenney underscores commitment to activewear with launch of nike® shops
01/16 IN THE WORKS : JC Penney plans beauty center expansion
01/15 THOM ANDERSON : Sears arrived at a good time for Florence
01/14 J.C. PENNEY INVESTIGATION INITIATED : Kahn Swick & Foti, LLC Investigates the O..
01/12 MACY : Film/Video
01/10 J C PENNEY : What's going into closed J.C. Penney is first of its kind in area
01/08 J C PENNEY : What's going into closed Rancho Cucamonga J.C. Penney is first of i..
01/06DJIn-Store Declines Drag Down Traditional Retailers
More news
Sector news : Department Stores - NEC
01/19DJAPPLE : Amazon, Apple End Exclusivity Deals for Audiobooks -- 3rd Update
01/19DJAPPLE : Amazon, Apple End Exclusivity Deals for Audiobooks -- 2nd Update
01/19DJMACY : Shopping Mall's Woes Ripple Through an Ohio Town
01/19DJAPPLE : EU Says Amazon, Apple End Exclusivity Obligations for Audiobooks -- Upda..
01/19 APPLE : EU antitrust regulators welcome Amazon, Apple audiobook deal
More sector news : Department Stores - NEC
News from SeekingAlpha
01/18 MACY'S : An Undervalued Stock With 30% Upside
01/18 J.C. PENNEY COMPANY : Looks Like Easy Money
01/18 More Severe Pain Coming For Retail Stores This Month?
01/18 Credit Suisse positive on JWN, downgrades for JCP and KSS
01/17 J.C. Penney adds Nike in-store shops
Advertisement
Financials ($)
Sales 2017 12 574 M
EBIT 2017 389 M
Net income 2017 0,20 M
Debt 2017 3 690 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 12,31
EV / Sales 2017 0,46x
EV / Sales 2018 0,40x
Capitalization 2 063 M
More Financials
Chart J C PENNEY COMPANY INC
Duration : Period :
J C Penney Company Inc Technical Analysis Chart | JCP | US7081601061 | 4-Traders
Full-screen chart
Technical analysis trends J C PENNEY COMPAN...
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 10,3 $
Spread / Average Target 53%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Marvin R. Ellison Chairman, President & Chief Executive Officer
Edward J. Record Chief Financial Officer & Executive Vice President
Therace Risch Chief Information Officer & Executive VP
Robert Gerald Turner Independent Director
Leonard H. Roberts Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
J C PENNEY COMPANY INC-19.49%2 063
WESFARMERS LTD-1.28%35 477
KERING7.88%30 925
AEON CO LTD0.78%12 680
EL PUERTO DE LIVERPOOL..-7.70%9 911
ZHEJIANG CHINA COMMODI..-6.01%6 354
More Results