JC Penney Co Inc

Appliances used to be a huge part of the JCPenney shopping experience. After so many years, does the retailer still sell home appliances?

JCPenney filed for bankruptcy in May 2020 and emerged from it after seven months of reorganization. Many people still wonder, is JCPenney out of business?

This series on JCPenney will provide insight into the company’s business and its turnaround strategy, key growth initiatives, stock price movement, and valuation.

After a bankruptcy, a buyout, and hundreds of store closures, will JCPenney department stores survive?

As of September 4, department store stocks for Macy’s fell by 11.1% since the start of 2015. Despite 1H15 sales growth, Nordstrom’s stock also fell by 7%.

Macy’s (M) stock price has fallen a whopping 46.7% this year. On December 21, 2015, Macy’s share price fell to $35.02. It touched its 52-week low of $34.50 on December 17.

In this article, we’ll use the 12-month forward PE (price-to-earnings) ratio to assess Macy’s current valuation and compare it with its peers’.

DE Shaw increased its position in specialty retailer Sears Holdings (SHLD) from 0.01% to 0.07% in 4Q 2013.

In the first six months of fiscal 2016, HomeGoods accounted for 12.2% of the consolidated net sales of TJX Companies. That’s up from 11.2% in the comparable period of the previous year.

JCPenney (JCP) considers its private brands as key sales drivers. Some of the company’s popular private brands are St. John’s Bay, Arizona, Okie Dokie, Total Girl, and Xersion.

As we mentioned in Part 1 of this series, JCPenney’s (JCP) stock has risen 24.7% since the start of the year to $8.69 as of June 28.

Some ETFs with holdings in Macy’s include one of the most popular ETFs in this category, the Consumer Discretionary Select Sector SPDR Fund (XLY).

Target has just announced a partnership with Toys R Us parent company Tru Kids Brands to manage online sales and order fulfillment.

On February 2, 2017, 19 out of 22 analysts covering Macy’s (M) stock had “hold” recommendations, and three analysts had “buy” recommendations.

Macy’s (M) is gearing up for further international expansion with its plan to open its first Bloomingdale’s store in Kuwait.

As of July 13, 15 analysts covering JCPenney (JCP) stock have a “hold” rating. Seven analysts have a “buy” rating, while two analysts have a “sell” rating.

Macy’s has decided to close 125 stores over the next three years. The company will also reduce 10% of its staff, which is around 2,000 corporate jobs.

TJX Companies (TJX) reported better-than-expected earnings results for the third quarter of fiscal 2020, which ended on November 2.

Mid-tier department store chain JCPenney (JCP) impressed investors by reporting a lower-than-anticipated loss for the third quarter of fiscal 2019.

Macy’s (M) stock fell 4.2% on October 18 after Credit Suisse downgraded its rating. Credit Suisse downgraded the rating to “underperform” from “neutral.”

Kohl’s (KSS) stock was down 6.3% as of 12:35 PM ET today as the company lagged analysts’ sales forecast for the second quarter.

Currently, analysts expect JCPenney’s revenue to decline in fiscal 2019.

Nordstrom’s (JWN) revenue grew 6.7% to $7.6 billion in the first half of fiscal 2018. In the second quarter, which ended on August 4, the company’s revenue grew 7.2% on a year-over-year basis to $4.1 billion.

JCPenney (JCP) has been undertaking several strategic actions to improve its sales amid a challenging retail environment.

Ulta Beauty (ULTA) stock fell 9.1% to $212.36 on August 25, 2017, in reaction to the company’s results for fiscal 2Q17, which ended on July 29, 2017.

Silicon Valley startups with promising technologies have been pulling in money from surprising new sources.

Macy’s (M) gross margin remained flat in fiscal 2Q16 ended July 30, 2016. However, the company’s operating margin declined on a year-over-year basis.

Macy’s adjusted EPS (earnings per share) fell by 28.6% on a year-over-year basis in 1Q16. Analysts expect Macy’s earnings to fall in 2Q16 also.

2Q15 marked the 26th consecutive quarter of positive same-store sales growth for Ross Stores. Its last fall in same-store sales growth was in the 4Q08.

In fiscal 2014, women’s apparel accounted for 29% of Ross Stores’ sales of $11 billion. Home accents is also a key category at 24% of total sales.

The year 2014 marked 100 years of JCPenney’s (JCP) first private brand Marathon Hats. One of the major focus points of JCPenney’s turnaround strategy was to bring back its private brands.

JCPenney (JCP) sells merchandise and provides certain services to consumers through its department stores. The company also sells its products through its website at jcpenney.com.

Let’s take a look at some product categories that benefit from the back-to-school season. They include clothing and accessories, electronics or computer, shoes, and school supplies.

The growth in TJX Companies’ same-store sales slowed down in fiscal 2015, growing by 2.0% compared to 3.0% in fiscal 2014.

Only two of the top 12 US retailers, Macy’s and Nordstrom, managed to witness a rise in market share over the period 2009–2014.

Before being appointed Best Buy CEO, Hubert Joly was credited with turning around two other companies. Best Buy’s stock has appreciated by 111% since.

George Soros’ Soros Fund Management added a new position in Marathon Petroleum (MPC) that accounts for 0.45% of the fund’s 1Q 2014 portfolio.