Posted on 03/21/2013 10:24:05 AM PDT by jimbo123
However you’re counting the numbers, they hurt.
JCPenney revealed in a regulatory filing yesterday that it finished its fiscal year ended Feb. 2 with 116,000 employees — a whopping 43,000 less than a year earlier.
That’s a slashing of 27 percent — even steeper than the company’s disastrous revenue decline of 24.8 percent for the same period.
It’s also more than twice the figure of 19,000 job cuts that Chief Executive Ron Johnson testified to under oath earlier this month, when asked during the company’s trial with Macy’s and Martha Stewart how many Penney employees had lost their jobs on his watch.
(Excerpt) Read more at nypost.com ...
In before “Unexpected!”
Yes: They are hanging on to Degenerate.
Maybe next year when they have 50% less than a year ago they will wake up/
Unexpected ping?
Cue the “it’s because of the lesbian not the ridiculous pricing scheme and Ron Johnson being a moron” people......
They need gay stimulus monies.
JC Pennys is having problems? Who knew? (rolling eyes)
Of course it’s ‘unexpected’.
If we had a Republican president, it would be ‘expected’.
Not truly unexpected. For Johnson to cut 27% of his people on a 25% drop in sales, it means HE FORECASTED IN ADVANCE that sales would drop at least 20% so he starting cutting knowing that number. Problem is that he needed to cut around 40% if he wanted to make his numbers with such a large sales decline.
Any business supporting the fag-marriage agenda can go to blazes. I hope each and every one of them goes bankrupt.
“Cue the “it’s because of the lesbian not the ridiculous pricing scheme and Ron Johnson being a moron” people......”
ALL of the above.
We cancelled our credit card and do not even look at their advertisements. I hope they fail as 2-3% of the population is not worth losing the business of the majority who have just too many choices to knowingly support LGBT.
In addition to all of this, I found the quality of Penny’s merchandise to go way down.
Back when our 5 kids were growing up, I bought a lot of those clothes there. I don’t think I would do that today.
It could easily be both. :-)
JCP following in the footsteps of Monky Ward?
-— and sears is not far behind!
Okay... Sure Ellen might have turned off some people but a boatload like her. She’s a non-event on the financial performance. Ron Johnson is the single largest problem. He is trying to completely change the retail model and that plan is failing miserably. They are trying to stay ahead of it by slashing costs (thus the headcount decline).
Despite that the Board is behind Johnson. From a recent analyst report where they were initiating coverage at a “Buy” and a $22/sh price target
Operational transition.
JCP has two important projects on the table in the near term: the rollout of 21 new shops and the turnaround in their home goods strategy. The home goods refocus is an emblem of JCP’s attempt to recapture their traditional core customer – the dispute over Martha Stewart’s role in that refocus underlines this. A successful launch of the new offerings would represent a reassuring milestone for The Shops, especially if the revenue per square foot metric in that aspect of the strategy holds. The home goods refocus is an important part of any strategy to regain market share: this category has declined from 19% of their revenue mix in 2009 to 10% in 2012, even as the larger topline number declined. Any updates on these aspects of JCP’s strategy will be significant – the market is looking for any material signs that the turnaround strategy is either improving or further decompensating. One prospect, much discussed in the financial and popular press, is the potential for change in management. On March 12th, the board reaffirmed its confidence in the current executive, but even if the board were to see numbers that they felt compelled them from a fiduciary perspective to make a change, the impact would likely be a curtailment in heavy capital spending while maintaining the cost savings initiatives.
Meanwhile Robert W. Baird analysts have the following to allow:
Solid concept. JCPenney offers a combination of private and exclusive brands and well-known national brands at attractive prices, which management is working to enhance. Sephora inside JCPenney shops (~308 currently; 500+ store opportunity) and recent merchandising additions (Liz Claiborne, MNG by Mango, ALDO Call it Spring) have attracted customers and increased productivity.
Turnaround in progress. In January, JCP unveiled an ambitious plan to transform the company over the next four years. Key changes include a new “Fair & Square” pricing strategy (eliminating layered and frequent discounts), updated merchandise (adding brands, eliminating nonproductive brands, and enhancing owned brands), marketing (including spokeswoman Ellen Degeneres), a new store prototype (to be announced in 2013), and in-store presentation (100 unique shop-in-shops). Management is simultaneously seeking to cut SG&A by over $900 million annually.
Correlation is not necessarily causation...
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