Skip to comments.J.C. Penney Warns of Steeper Sales Decline
Posted on 05/07/2013 4:13:39 PM PDT by South40
J.C. Penney Co. (JCP -3.07%) forecast a sharper-than-expected decline in fiscal first-quarter sales, citing the effect of former Chief Executive Ron Johnson's strategies to turn around the struggling department-store operator.
For the quarter ended Saturday, the company said it expects to post sales of roughly $2.64 billion, a 16% drop from the prior year. Analysts polled by Thomson Reuters expect sales of $2.74 billion, or a 13% decline.
Same-store sales were estimated to be down 16.6%, after falling 18.9% a year earlier.
(Excerpt) Read more at online.wsj.com ...
And the trajectory is set, even have his leaving.
Most people I know don't trust this store anymore. I don't.
They have a LONG WAY to go if they EVER want their customer base back. Ignoring Ellen and all that crap simply is not enough, anymore.
Maybe they should double-down on gay activism.
I am so pleased to see this company go down.
Not so fast South40.....
....Investors breathe a sigh of relief over J.C. Penney....
May 7, 2013, 5:56 PM
As long as theres no really dreadful news, investors seem to be willing to go easy on J.C. Penney Co. JCP+1.83%.
The retailer reported after the market closed Tuesday that its preliminary fiscal first-quarter sales fell 16% to $2.64 billion. That missed the $2.74 billion consensus estimate posted by FactSet. Comparable sales, meanwhile, dropped 16.6%, also worse than the 11% drop of analysts surveyed by Retail Metrics.
Nevertheless, its comforting the sales drop was less than the 25% decline last year.
Also giving investors some solace, the company said it expects cash and cash equivalents at the end of the first quarter (May 4) to be about $821 million.
After ending last year with $930 million in cash and recently tapping $850 million from its revolving credit line, analysts said Penney may have burned less than $1 billion in cash in the first quarter, better than the $1.3 billion burn rate some feared.
Theyve got enough cash just to make through the summer, when there are peak cash needs in July and August, said Morningstar analyst Paul Swinand in an interview. He said Goldman Sachs $1.75 billion in financing also provided a welcome cushion to its cash coffers.
Swinand rates the stock a buy, keeping him among a small group of analysts betting on a turnaround at the struggling chain.
Penney shares rose 2% on the news.
The company blamed the sales decline partly on the construction of its home departments in 505 stores and on its earlier pricing and marketing strategies, which it said are being changed under returning Chief Executive Mike Ullman. Penney said it issued the preliminary results because of the Goldman Sachs loan. Final results will be released on May 16.
I guess Ellen and that “love fest” with the gays didn’t work out to well.....
Penney’s used to be a family-store. They decided to cater to homosexuals. They didn’t get their business anyway, and now they have lost ours. How much did the CEO who caused this fiasco walk out with laughing all the way to the bank?
Some will never come back...those who don't are unwilling to wait until Ullman can get out the contracts with the likes of Degenerous etc.
The catalog is no more as flyer's once more are being sent out...and coupons as well.
It's only been three weeks or so since uulman took over.....he's accomplished a great deal in short order already.
St. John's Bay is back into the stores as of this week...and others will also be returning that were good sellers.
I think it's only fair to give him some time to turn this ship around...and I believe he will from all I'm seeing at floor level.
Employee moral was horrible under Johnson....now excited to have things begin to be normal again...slowly but hopefully surely.
Give Ullman time...Ellen will be history once they determine how to get out of the contract.
I work there...it still will be a family store once Ullman can tackle all he has to tackle to turn it around...it took Johnson 18 months to hurt this company...and bring in his liberal mindset...it’s going to take a little time to root that out.
I’m certain Ellen has a contract, which they will determine how to get out of that hopefully soon.
BTW HE didn’t just walk out...he was fired! And he knew from the get go he couldn’t loose even if fired.
Not uncommon these CEO’s walk out ok...but Johnson lost a whole heap in stocks etc.
And now that Soros is into JC Penney, I’m ALL the way out.
The gay community is not the 90% they said it was?
Oh well. bye bye JC Penny.
I went into my local Pennys looking for Easy Spirit shoes, which I had always bought there. I looked around the department and didn't see the brand anywhere. A young woman asked if she could help me and I told her what I was looking for. "Oh", she said, "we don't carry that brand." I said, "you used to." She sighed and turned around and under her breath I heard her mutter, yeah, we used to.
She seemed so disspirited.
“Business sucks but we are still FABULOUS”!
I work there...it still will be a family store once Ullman can tackle all he has to tackle to turn it around...
I hope you are right that it turns around. My husband only buys his underwear (Stafford) from Penney’s. (Sorta like rainman)
All these things Johnson changed will be attended to in time....Ullman’s been just three weeks at the Helm and accomplished what Johnson could not...he's shored up the business...established contacts necessary with those that matter to do that...is handling vendors etc...and has done much in this short time already....and yesterday the entire company just completed their first inventory count since Christmas...which Johnson would not do.
Employees are working like mad to satay up with these changes now...and this on skeleton crews for the most part....that too will change once theirs a complete "picture" of just where the plans will go. All construction stops once the home areas are completed. I am hopeful things will turn around and we won't be seeing the likes of Ellen and others like her...if that continues, which I understand won't be, but if it does...I'll be looking elsewhere for work.
The key word is SLOWLY. Once they’re out of cash, it’s game over. They do need to take some POSITIVE STEPS now...or nothing matters.
So yes, it's been very hard on employees...but give it some time...as I said this week St. John's Bay is back in our store in full...and others will follow that were once popular to the base customers.
It's going to take time...but I am confident the Penny's we all knew will again be back...perhaps with a face lift which nobody can argue it didn't need, but the items hopefully will once again satisfy those who have shopped there.
Are you also out of all the other companies he’s invested in?
Glad he’s gone, and hope the damage can be repaired. Finally went back after a year, and found the softest, prettiest V-neck tees. I believe they are called “slub tees” and come in every color of the rainbow. $6.99!!
Too true. I was never out of their home store, and always left with something, but they dropped all the brands I used to buy, and the store is nearly empty now and has been for months. Latterly I have been getting cards for 10 or 20% off, but there is nothing to buy. Only saw 2 salespersons in the whole store when I was last in, which was fine as there were only about two customers in the store, aside from myself, and we were all disgusted with the empty shelves and odd items for sale, which looked like the picked over leftovers from previous glory days. Saw one gal tearing her coupon in half, and dropping it in the trash. Pity, it used to be a favorite haunt.
There were so many holes needing plugged and so far he's done exceptionally well. Keep in mind not only did Johnson leave but he lost three of his own people in the past seven months and took three more with him when he left. So Ullman also has had to get people back to work with him....
It's been a circus and it's not done yet...but we employees are very excited and hopeful...you cannot imagine the relief felt when Johnson was fired....it was like a shoe was taken off every-bodies neck!
Wow...I’m glad for you. I’ve tried get the point across to JCP that they have to STEP UP, not just idle-away, if they want to survive. They lost most of their wealth under Johnson - they cannot build it back up very quickly, unless they take some chances, as in Chick-a-Fill. Just trying to go back to where they were simply CANNOT work, and I can promise you that.
If you see that, get your resume in the mail, immediately.
Johnson wanted “Designer” shops...that is not Penney's nor would it ever be....although they've always had several shops within the store right along. But there will be no more tearing out depts’s to make room for the expansions Johnson was doing..and that rapidly.
Our store was the busiest I'd seen it in months ...we were all on the run trying to keep up with the customers...I was bushed but very happy to see the customers returning in droves as they did over this weekend.
It will be a favorite place again...it's been just three or four weeks...give it some time.
Those I know of, yes. I try not to knowingly spend money that goes in the pocket of a known enemy of everything conservatives stand for.
What do you do?
Ha! So does my brother...I think alot of men love the store..they usually come in and get what they want...they like consistency....not shopping like woman do.
Yes, I hope I'm right as well...I got to say when I took this job after taking an early retirement I wasn't prepared for Johnson coming in and all this mess...it's taken a toll on many employees...some left because they could no longer handle the anger of the customers over these changes...it's been truly awful...I've never seen so many angry customers so often, for such a long period! They were truly nasty!
It's been my pleasure to inform them Johnson's gone and things will be normal in time...
Is JC Penney still celebrating sodomy? I haven’t bought—and in fact I have AVOIDED the stores in my area since finding out about their embrace of perversion.
They do need to bring back the top sellers Johnson got rid of....keep in mind his target audience was young people and high spenders...neither of which was Penney's..but something else he was attempting to create.
Johnson offended the base customers greatly..and the employees....as well as those working with him...he was on a one man mission and nothing was going to sway him from that.
Ullman had already been bringing in new “shops” but at a pace that is the standard for customers to adjust to.
If you look at the stats for Penney's when the 0 financial crisis hit...Penny's was one of the very few retailers who remained stable..not good nor bad but stable. The man who brought Penny's thru that is at the helm now...so if anybody can do this I think he can stabilize the ship.
Well, then I will wish you success and good fortune.
I looked (quickly) through this year’s Mother’s Day flyer and didn’t see anything suggestive of homosexuality. Going to wait and check the Father’s Day one before drawing any conclusions.
I think you meant Chick-fil-A. ;>)
“I think you meant Chick-fil-A.”
Call it what you will, it just flows much better my way.
Good. It was bad enough to push Ellen Degenerus on us, then Soro’s buys a chuck of stock. I use to shop at Penney’s, no more.
They were so anxious to enter a bold new scheme...throw the LGBT crap in the public’s faces, like Obama does, and hopefully, the world rushes in to say how wonderfully fashionable you are. Only, they forgot that JCP customers are, and mostly have been, conservative and family-oriented by traditional means.
My wife dragged me to the local JCP to look at some housewares.
I found the exact same item (vendor, brand, box and item, same sku even) at the local Walmart for 30% less. If they sell the same cr@p as Wally world, why bother to go to either place?
If it’s truly that significant to you you might want to check where your utilities come from....don’t shop Costco or buy Papermate, UniBall or Sharpies...and certainly don’t pay for anything with an America Express Card...and when you buy tool stay away from Vise-Grip and Unibit.
He’s invested in all these and far more.
<....they forgot that JCP customers are, and mostly have been, conservative and family-oriented by traditional means....>
Johnson didn’t forget...he didn’t want them...they were no longer his target customers at all. He wanted to remake Penney’s to something it is not...it was doomed to fail from the get go for he broke every rule known of the standards in operating a retail store and it’s environment, let alone insilting the customers who had been loyal for years to Penney’s.
It got so bad I really began believing it was dileberate to bring Penny’s down!
JC Penny’s was lost quite awhile ago. They made their bed, chose who to stand with all on their own....so enjoy yourselves but I won’t be a part of what you have become.
Thank you Gator....I hope but i am not a fool wither...it will take a lot more yet to turn this around...but at least it’s much better going into work there...I had been looking for other work...It didn’t feel like a good fit anymore.
Outrageous and completely unnecessary discontinuation.
Well Johnson didn’t care what the customer wanted...he was on another track for Penney’s altogether.
I remember after one year the “message” was... the customer has had enough time to adjust and we’re moving on from here.
What an insult!
What he didn’t seem to accept was it was the customer who was moving on! We saw it week after week as the traffic declined more and more...and even then he still wouldn’t pay attention.
BTW It is known in the high fashion industry that Penney’s shirts, and clothes for men, are the best quality if one doesn’t buy high end designer labels.
I wish the same for Starbucks with the hard-core attitude they don't care what we think about who they support. Hubby pointed out this morning that many people in America only make $7.00 an hour (before taxes) when people spend almost that much for just one latte's or cappuccino and they do it often.
Jinkies! Sounds like they’d better rush right out and hire some more queers to hock their crappy, overpriced garbage...
Wow! What a broad sweep you make. Good you are not going to be shopping there. If they can get things turned around, as it should be - I will shop there. If you are concerned about who is pro-gay / who donates to gay causes-and who is not, you need to check- you will not be shopping any where.
Why in the world do you assume any one and every one who works at JCPs is queer?
Gay C. Penney. Let them rely on the perverts whose butts they kissed.
I could use a pair of pants and was in their neighborhood, so I wandered in last Saturday morning. It's been awhile, but I didn't recognize the place.
The store was devoid of shoppers. None. I was it. And this was a Saturday - not an off time.
Stranger still was the fact that 1/2 the store was empty. Some was due to a remodeling that was going on. But at least 1/2 of the available floor space had little to no merchandise on it. I'm no expert, but I'd guess that it's hard to make money if you have nothing to sell.
And my pants? Kohl's had the same thing, cheaper, without the coupon.
Barring a 180 flip in the next few months, JCP is on its way out. Too bad, I really liked shopping there, at one time.