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Stock Market & Financial Investment News

News Breaks
August 15, 2014
10:30 EDTKSS, JWN, M, JCPJ.C. Penney falls despite posting a narrower than expected Q2 loss
Shares of retailer J.C. Penney (JCP) are lower this morning despite posting a narrower than expected loss for the second quarter. WHAT'S NEW: J.C. Penney's Q2 adjusted earnings per share was a loss of 75c per share, which was better than analysts' consensus of a 93c loss. The company's Q2 revenue came in at $2.8B, which narrowly beat analysts' consensus of $2.79B. Same store sales for the quarter increased 6% and online sales were up 16.7% compared to the same period last year. Chief Executive Myron Ullman said that the company's turnaround initiatives continued to produce improved financial results. WHAT'S NOTABLE: Looking ahead, J.C. Penney forecast third quarter SSS to be up mid-single digits, while Q3 gross margins are expected to fall in line with Q2. SG&A expenses are anticipated to be slightly above last year's levels. For fiscal year 2014, the company expects SSS to be up mid-single digits, while gross margin is seen to improve significantly compared to last year. The retailer is expecting profitable sales this back-to-school season. ANALYST REACTION: Maxim analyst Rick Snyder said that while J.C. Penney had a quarter which surpassed expectations, he still feels that difficult comps lie ahead. Snyder said that even though the company guided free cash flow to be positive, the projection is a one-time inflow and is not likely to be repeated in the coming years. He is modeling free cash flow to be up only modestly even past the end of the year. The firm maintains a Hold rating on the stock. Piper Jaffray analyst Neely Tamminga said that a company turnaround is "very much underway" and that it is poised to regain $2B-$3B of its $6B revenue loss after a management shift. He continues to feel that the retailer is positioned to improve cash flow, sales and margins over time. Tamminga believes that the retailers' positive outlook for Q3 comps indicate an optimistic outlook for back-to-school season. The firm keeps an Overweight rating on the shares with a price target of $12. Wells Fargo analyst Paul Lejuez said that even though gross margin comps proved notably and gross profit dollars increased by 25%, he feels that there isn't any reason why anyone should "get too excited" about J.C. Penney since they lost 73c per share excluding the gain on sale of land. He maintains his opinion that the current valuation is stretched and keeps an Underperform rating on the company's shares with a $5-$6 price target. PRICE ACTION: In morning trading, J.C. Penney fell 26c, or 2.67%, to $9.48, reversing earlier gains. The stock has lost approximately 32% over the past twelve months. OTHERS TO WATCH: J.C. Penney peer Macy's (M), which reported its earnings earlier this week, is down almost 1% this morning, while Nordstrom (JWN), which reported in-line results yesterday, is down almost 4%. Kohl’s (KSS) is down 0.7%.
News For JCP;JWN;KSS;M From The Last 14 Days
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January 23, 2015
09:02 EDTMMacy's Sacramento fulfillment center to relocate to larger facility
Macy’s announced it plans to relocate its West Sacramento, CA, direct-to-consumer fulfillment center to a larger facility in a nearby location in Sacramento County to support continued sales growth driven by Macy’s omnichannel strategy. Contingent on approvals by the Sacramento County Board of Supervisors, Macy’s will begin operations in summer 2015 at a 385,000-square-foot facility at 6200 Franklin St., creating approximately 100 new jobs. The current 92,000-square-foot fulfillment center is located about 10 miles away at 3919 Channel Drive in West Sacramento. The current workforce of 72 associates is planned to grow to more than 175 after the move. Macy’s multi-million-dollar upgrade to the new fulfillment center will include building modifications and the latest technology in material handling equipment and warehouse management systems.
January 21, 2015
12:12 EDTJCP, MBest Buy, home retailers seen getting biggest bump from Sears demise
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06:59 EDTMMacy's sues Strategic Marks in brand dispute, NY Post says
Macy's is suing Strategic Marks after the company attempted to acquire certain Macy's brand names, including Abraham & Straus, Marshall Field’s, and Filene’s, reports the New York Post. Strategic Marks laid claim to the "dormant" brands, saying Macy's acquired then abandoned them in order to eliminate regional competition, and trial is set for March 2. The Post notes that Strategic is readying "its own launch of new merchandise and pop-up stores." Reference Link
06:52 EDTMMacy's sues Strategic Marks in brand dispute, NY Post says
Macy's is suing Strategic Marks after the company attempted to acquire certain Macy's brand names, including Abraham & Straus, Marshall Field's, and Filene's, reports the New York Post. Strategic Marks laid claim to the "dormant" brands, saying Macy's acquired then abandoned them in order to eliminate regional competition, and trial is set for March 2. The Post notes that Strategic is readying "its own launch of new merchandise and pop-up stores." Reference Link
January 20, 2015
09:44 EDTMSupreme Court denies appeal of 'swipe fee' ruling, Reuters reports
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06:22 EDTJCPJ.C. Penney to bring back 120-page catalog, WSJ reports
J.C. Penney has decided to resurrect its catalog in the form of a 120-page book that will mark the first catalog the chain has sent out since 2010, The Wall Street Journal reports. The retailer, which quit the catalog amid a broader pullback caused by the recession and the rise of e-commerce, now believes the catalog can help drive web sales. Reference Link

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