JC Penney Stock Down More Than 10% On Dismal Holiday Sales
Zacks Investment Research | Jan 09, 2020 08:48PM ET
J. C. Penney Company, Inc. (NYSE:JCP) joins the likes of Kohl’s (NYSE:KSS) and L Brands (NYSE:LB) that witnessed sluggish holiday season sales. Shares of this Texas-based company fell 10.8% during the trading session on Jan 9, 2020, following the department store retailer’s drab holiday sales numbers.
Analysts pointed that stiff competition from e-commerce players such as Amazon (NASDAQ:AMZN) and a persistent struggle to cope with rapidly changing consumer trends might have taken a toll on the performance.
We note that comparable store sales (comps) for the nine-week period ended Jan 4 dipped 7.5%. On an adjusted basis, comps for the same period fell 5.3% compared with a decline of 5.4% in the last year.
Well, the company has been in a spot of bother for some time, thanks to dismal sales. In the third quarter, net sales fell 10.1% year over year due to soft comps. Comps declined 9.3% due to the company’s exit from the major appliance and in-store furniture categories. Moreover, excluding these exits, comps fell 6.6%.
Nonetheless, management reaffirmed its guidance for fiscal 2019. It continues to expect a comps decline of 7-8%. Excluding the impact of the exit from the major appliance and in-store furniture categories, comps are still anticipated to decline 5-6%. Mounting sales decline have been hurting investors’ sentiments. The stock has lost 7% in the past six months compared with theZacks Investment Research
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