JC Penney Co Inc

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

Kohl’s (KSS) reported its third-quarter results for fiscal 2018 on November 20. The third-quarter adjusted EPS came in at $0.98, easily beating analysts’ estimate of $0.96.

Treasury yields fell across the yield curve for the week ended October 16, as US industrial production for September declined. Demand for safe-haven assets rose amid global uncertainty.

Burlington Stores’ (BURL) off-price model helped it deliver same-store sales growth for the 19th consecutive quarter in fiscal 3Q17.

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%.

In April 2016, Nordstrom announced certain operating model improvements to generate savings of about $60 million in fiscal 2016.

Though the recent tensions in the South China Sea seem to have gathered much attention, the markets don’t seem to have factored in the conflict.

The stock price of leading off-price retailer TJX Companies (TJX) was up 1.8% as of 10:53 AM EST today. The company announced its results for the first quarter of fiscal 2019.

JCPenney (JCP) expects its same-store sales growth in fiscal 2017 to range from -1.0% to 1.0%.

Currently, most analysts covering JCPenney (JCP) stock recommend “hold.”

On August 2, 2016, Nordstrom’s (JWN) stock price had fallen by 18.7% to $40.74 on a YTD (year-to-date) basis.

Lululemon Athletica (LULU) stock was up over 3.0% in pre-market trading today after the company raised its guidance for the fourth quarter of fiscal 2018.

The department store index performed the worst of all retail subsector indexes in November, falling by 12.3%.

JCPenney’s (JCP) same-store sales declined by 0.4% in 1Q16 ended April 30, 2016.

Macy’s is expanding its beauty business through the opening of Bluemercury shops within its stores. Macy’s acquired the luxury beauty product and spa services retailer for $210 million in March 2015.

As of March 6, 2018, JCPenney (JCP) stock has risen 19% to $3.76 on a YTD (year-to-date) basis.

As of February 4, 2016, 14 of the 24 analysts covering Kohl’s have a “hold” recommendation for the stock, eight analysts have a “buy” recommendation, and two analysts gave a “sell” recommendation.

According to data released by the NRF (National Retail Federation) on December 14, 2016, retail sales rose 5.0% on a year-over-year basis in November.

13 out of 24 analysts have “hold” recommendations on Kohl’s. Eight analysts have “buy” recommendations, and three analysts have “sell” recommendations.

Most of the analysts who have provided recommendations on Kohl’s (KSS) have maintained “buy” ratings on its stock.

As of May 22, Kohl’s (KSS) was trading at a 12-month forward PE ratio of 11.2x. After the announcement of its first-quarter results on May 22, its valuation multiple has fallen 8.3%.

The Consumer Sentiment Index for March 2015 declined to 93 from 95.4 in the month of February due to slightly higher gas prices and bad weather.

In fiscal Q1 2018, JCPenney’s (JCP) gross margin declined about 240 basis points on a year-over-year basis to 33.8%.

Kohl’s (KSS) peer Macy’s (M) announced better-than-expected fiscal 2018 fourth quarter results on February 26, which led to a rise in stock prices for key players in the department store sector.

JCPenney’s (JCP) sales grew 1.8% in fiscal 4Q17 but missed analysts’ consensus estimate by 0.4%.

Most department stores, including JCPenney (JCP), Macy’s (M), Nordstrom (JWN), and Kohl’s (KSS), have consensus “hold” ratings for their respective stocks.

JCPenney reported lower-than-expected adjusted EPS of -$0.38 in the second quarter of fiscal 2018 compared to analysts’ expectation of -$0.06.

JCPenney’s (JCP) gross margin fell by 200 basis points to 35.1% in fiscal 2Q17—compared to 37.1% in fiscal 2Q16.

Department stores’ results for fiscal 3Q15, which ended October 31, 2015, conveyed mixed signals to investors. Macy’s reported a 5.2% fall in 3Q15 sales.

George Soros’ Soros Fund Management added a new position in Devon Energy (DVN) that accounts for 0.50% of the fund’s 1Q 2014 portfolio.

Subdued US same-store sales are not a favorable indicator for department stores. In 1Q15, which ended May 2, 2015, Macy’s (M) reported a 0.7% fall in same-store sales.

Macy’s announced that it is rolling out same-day delivery of products purchased on its macys.com and bloomingdales.com websites, as well as on its mobile-enabled websites, to nine additional markets.

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.

Sales under pressure As discussed earlier in this series, Macy’s sales continued to fall for the seventh straight quarter in 3Q16. In 3Q16, which ended on October 29, 2016, Macy’s same-store sales fell 3.3% on an owned basis. The company’s same-store sales fell 2.7% in the quarter on an owned plus licensed basis. Macy’s is […]

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.

Besides the booming digital business, Target’s (TGT) focus on exclusivity through “only-at-target” brands has been a key sales-driving factor.

As of August 4, Macy’s stock price appreciated by 4.4% to $68.57 compared with the beginning of 2015.

Macy’s (M) operating margin in 3Q15 declined to 4.4% from 6.8% in the comparable quarter of the previous year. The company’s 3Q15 operating margin was also lower than its peers.

At the Goldman Sachs Global Retailing Conference, Macy’s senior management discussed the company’s initiatives to improve Macy’s same-store sales.

Kohl’s stock plunged 9.5% while JCPenney was down 11% today at 1:01 PM ET. These department store chains announced dismal holiday sales.

Kohl’s (KSS) reported better sales numbers than analysts’ projections for three of its reported quarters in 2017, but it missed expectations in one quarter.

Kohl’s will likely report its first-quarter results on May 19. The mid-tier department store chain temporarily closed its stores starting on March 19.

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’s earnings were ahead of the consensus Wall Street analysts’ estimate of $0.21 per share.

Kohl’s (KSS) stock surged 11.9% on April 23 in reaction to news of its expanded partnership with Amazon (AMZN).

JCPenney (JCP) stock rose 1.5% on January 15 in reaction to the mid-tier department store chain’s announcement of key executive appointments.

Bank of America Merill Lynch downgraded Macy’s stock to an “underperform” after the department store reported weak holiday sales.

According to a CNBC report, Sears Holdings (SHLDQ) might have one day to save itself from being liquidated.

Initial jobless claims for the week ending June 13 came in at 267,000 on a seasonally adjusted basis—better than consensus economists’ estimate of 275,000.

Nine out of 25 analysts have a “buy” recommendation for JCPenney’s (JCP) stock, ten have a “hold” recommendation, and six gave a “sell” recommendation.

In March, the Consumer Confidence Index surged to 101.3. In February, it dropped to 98.8 from 103.8 in January. The CSI fell to 93.0 from 95.4 in February.

The 4Q15 sales of upscale department store Nordstrom (JWN) came in at $4.19 billion, missing the consensus analysts’ estimate of $4.22 billion. In this series, we will discuss the company’s earnings, store growth plans, planned capital spending, and the outlook for fiscal 2016.

Sears Holdings (SHLDQ) has been in the limelight for all the wrong reasons.

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.

In 4Q17, Kohl’s (KSS) reported a gross profit of $2.3 billion, up 10.7% on a YoY (year-over-year) basis, driven by higher revenue.

JCPenney’s strategic initiatives helped improve its bottom line in all of the quarters in fiscal 2015 and in 1Q16. IJJ has 0.4% exposure to JCPenney.

On June 7, JCPenney (JCP) announced its partnership with Fanatics—a leading licensed sports merchandise retailer.

Nordstrom (JWN) announced its fiscal 3Q17 results on November 9, 2017, after the market closed. Revenue rose 2.5% to $3.6 billion YoY (year-over-year), which was 1.4% higher than the estimate.

JCPenney (JCP) reported same-store sales growth of 3.9% in November and December—the 2015 holiday season.

JCPenney (JCP) trimmed its adjusted loss per share in fiscal 2Q15 to $0.41 compared to $0.75 in the corresponding quarter last year.

JCPenney’s (JCP) sales fell by 1.6% to $2.8 billion in 1Q16, amid a challenging retail environment.

Nordstrom (JWN) stock fell 2.7% on July 10 following a rating downgrade by KeyBanc Capital Markets to “sector weight” from “overweight.”

On September 8, Macy’s partnership with Best Buy was announced. Macy’s will open licensed Best Buy shops within ten of its stores.

Of the 26 analysts covering JCPenney’s stock, 11 analysts have a “buy” recommendation and 11 analysts have a “hold” recommendation. Four analysts have issued a “sell” rating.

The rise in JCPenney stock is influenced by its improved financials and renewed expectations about growth prospects. In fiscal 2014, JCPenney reported same-store sales growth of 4.4%.

Macy’s (M) 12-month forward PE (price-to-earnings multiple) fell 15.1% to 7.2x on May 11, 2017, in reaction to its disappointing 1Q17 performance.

Kohl’s (KSS) net sales fell 3.4% to $6.54 billion in the fourth quarter of fiscal 2018.

Nordstrom (JWN) stock fell 9% in after-hours trading on November 16 following the announcement of its third-quarter results.

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.

Burlington Stores puts a high emphasis on certain merchandise categories like ladies apparel, home and bath, cosmetics, and fragrances.

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.

JCPenney (JCP) was able to trim its losses in 1Q16 ended April 30, 2016, despite lower sales.

On May 7, the stocks of Macy’s, Nordstrom (JWN), Kohl’s (KSS), and JCPenney (JCP) fell 3.8%, 2.0%, 4.3%, and 3.5%, respectively.

Kohl’s stock has been seeing increased pessimism among analysts lately. Jefferies downgraded its rating for the stock yesterday, followed by Cowen today.

JCPenney’s (JCP) gross margin expanded to 34.1% in 4Q15 ended January 30, 2016, compared with 33.8% in 4Q15.

On May 17, Nordstrom reported 0.6% growth in its comps on a YoY basis, which sent the stock down ~7% in after-hours trading.

The employment cost index increased by 0.7% for the first quarter of 2015 on a seasonally adjusted basis. This was higher than economists’ consensus expectation of 0.6%.

Macy’s is likely to benefit from its partnership with Best Buy given the growing demand for consumer electronics.

Kohl’s (KSS) stock fell 4.8% on January 10. Investors were disappointed with the sales growth deceleration during the holiday season.

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

JCPenney (JCP) will be bringing a leading assortment of major appliances to 22 pilot stores effective February 1, 2016.

On August 4, JCPenney (JCP) stock was rated “hold” by 14 of 23 analysts. JCP stock is rated “buy” by seven analysts and “sell” by two analysts.

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

Sears Holdings (SHLD) is expected to report a revenue decline of 33.6% to $2.9 billion in the first quarter.

In the apparel industry, operators are focusing on the retail side of their business. Through retail operations, companies generate higher margins.

General Growth CEO Sandeep Mathrani spent a lot of time on the conference call discussing the impact of e-commerce on his company (and mall REITs in general).

Sales for Ulta Beauty (ULTA) rose 22.5% to $1.31 billion in fiscal 1Q17. It exceeded the consensus Wall Street analysts’ sales estimate of $1.28 billion.

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.

On January 29, 2016, Macy’s (M) announced the completion of its transaction with Tishman Speyer for the redevelopment of its Brooklyn, New York, store on Fulton Street.

Some Starbucks stores will start accepting Apple Pay by the end of this year. Apple Pay’s complete rollout at 7,500 Starbucks stores will happen by the end of next year.

Macy’s (M) has missed consensus Wall Street sales estimates in each of the first three quarters of fiscal 2015, which will end January 30, 2016.

Nordstrom (JWN) is set to declare its fiscal 2018 fourth-quarter results after markets close on February 28.

Deckers (DECK) is emphasizing retail store closures despite labeling them as a vital component of the company’s omnichannel strategy.

Soros Fund Management added a new position in Baker Hughes Inc. (BHI) that accounts for 0.67% of the fund’s 1Q 2014 portfolio.

Macy’s 1Q15 earnings might be impacted by restructuring plans, investment in digital retailing channels, and costs related to store closings and openings.

Nordstrom (JWN) stock rose 5.1% to $53.04 on March 2, 2018, in reaction to the company’s fiscal 4Q17 results.