JC Penny’s (JCP) stock price has fallen by 87% since 2012 which is not surprising given the large losses, negative cash flows and significant debt it has struggled with. However things have improved since then and management have taken many measures to turn the company around. With some success it appears as the company reported a profit of $192m for the latest quarter and a token profit for the full year ended January 2017 – it was only $1m but represented a $514m improvement on 2016.
Key to the turnaround is CEO Marvin Ellison who was appointed in August from Home Depot. He has been cutting costs and focusing on profitable lines such as beauty products, appliances, and home goods. Positioning JCP to pick up business from Sears and others. Additionally he has been trying to improve the in store experience of customers – something he was successful with at Home Depot.
Mr Ellison has a good track record and brings a lot of useful experience from Home Depot. He has already been successful in stemming the decline and restoring profitability.
The company has issued guidance is for 2017 EPS of between $0.40 to $0.65 which compares well to the current stock price of $5.79.
Just my opinion. This is not a recommendation to buy or sell. Please do your own research.
Submitted April 01, 2017 at 01:24PM by InterestingNews1 http://ift.tt/2omCD8g
