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  - 05/26 10:02:08 pm
4.71 USD   +1.07%
05/26 J C PENNEY : JCPenney lays off more than 100 workers in Ohio
05/26 J C PENNEY : May 26 Bless Your Heart
05/26 The squeeze is on at area's malls
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 CEST

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
05/26 J C PENNEY : JCPenney lays off more than 100 workers in Ohio
05/26 J C PENNEY : May 26 Bless Your Heart
05/26 The squeeze is on at area's malls
05/25 J C PENNEY : hires Charlotte retail exec to help revitalize its brand
05/25 J C PENNEY : Top UHV MBA Teams Recognized for Business Analysis
05/24 J C PENNEY : Announces Successful Early Tender Offer Results
05/24DJRatings Companies Give Closer Scrutiny To Shopping Malls -- WSJ
05/24 MACY : Film/Video
05/23DJRatings Firms Issue Downgrades for Mall-Backed Debt
05/23 J C PENNEY : Jcpenney appoints marci grebstein as chief marketing officer
More news
Sector news : Department Stores - NEC
05/27DJCompanies Quit Share Splits -- WSJ
05/26DJAmazon's Brush With $1,000 Signals the Death of the Stock Split
05/26DJBEST BUY : Defies Slump in Retail -- WSJ
05/25DJBEST BUY : Defies Retail Doldrums, Posting Higher Sales -- 3rd Update
05/25 Abercrombie's same-store sales beat on demand for Hollister brand
More sector news : Department Stores - NEC
News from SeekingAlpha
05/26 COSTCO : Heading To $200
05/26 REALTY INCOME'S INCOME IS ON SALE : Will You Buy Any?
05/25 Uplifting day in retail sector
05/25 14 Stocks For 2017 And Beyond - May Update
05/24 Will J.C. Penney File For Bankruptcy And When?
Advertisement
Financials ($)
Sales 2018 12 191 M
EBIT 2018 418 M
Net income 2018 22,4 M
Debt 2018 3 630 M
Yield 2018 -
P/E ratio 2018 -
P/E ratio 2019 10,23
EV / Sales 2018 0,42x
EV / Sales 2019 0,40x
Capitalization 1 454 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 HOLD
Number of Analysts 24
Average target price 6,77 $
Spread / Average Target 44%
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-43.32%1 454
KERING38.21%41 609
WESFARMERS LTD1.14%35 975
AEON CO LTD-0.39%12 919
EL PUERTO DE LIVERPOOL..-0.71%10 866
LOTTE SHOPPING CO LTD--.--%7 779
More Results