Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, August 23, 2013

Article Excerpt

J.C. PENNEY CO. INC., $13.50, New York symbol JCP, operates more than 1,100 department stores in the U.S. and Puerto Rico. Over a year ago, the company switched to an everyday low prices strategy. It felt the move would entice shoppers to come into its stores more often and not wait for clearance sales. However, the plan alienated Penney’s regular customers. In response to a sharp drop in its sales, the company switched back to its original marketing strategy. So far, the switch back has had little impact on Penney’s sales and earnings. In its fiscal 2014 second quarter, which ended August 3, 2013, its losses ballooned to $2.16 a share from $0.37 a year earlier. These figures exclude restructuring charges and other unusual items. On that basis, the latest results were much worse than the consensus estimate of a $1.06-a-share loss. The company had to mark down merchandise purchased under its failed strategy. Partly due to these clearance sales, overall sales fell…