3 Ways J.C. Penney Can Still Reinvent Itself
J.C. Penney's (NYSE: JCP) stock recently dipped below $1 a share again after the company revealed that its comparable-store sales fell 7.5% during the nine-week holiday period. Excluding its ongoing exits from the major appliance and in-store furniture categories, its comps still declined 5.3%.
On the bright side, J.C. Penney didn't change its previous full-year outlook for a 7%-8% comps decline on a reported basis, or a 5%-6% decline after excluding its major appliance and in-store furniture products. It also reiterated its previous goals of boosting its gross margin and generating positive free cash flow for the year.
Yet J.C. Penney's core business is still in trouble. It's struggling with sluggish mall traffic as Amazon, Target, Walmart, fast-fashion retailers, and off-price retailers lure away its shoppers. CEO Jill Soltau is clearing out J.C. Penney's inventories, shutting down weaker categories, and closing stores -- but her plans aren't generating any fresh revenue growth yet.
Source Fool.com
