Nothing august about J.C. Penney Company, Inc (NYSE:JCP) this August

Posted by Steve Raasch August 21, 2013 0 Comment 1171 views

Bill Ackman rustled up a storm at J.C. Penney Company, Inc (NYSE:JCP) and then exited the company board. But that is not the only thing that will help in getting the woebegone dealer back on track. The company announced its Q2 results that are far from bright and investors are almost tempted to head the other way. JCP sales dipped for the 9th consecutive quarter despite chief executive officer, Mike Ullman’s efforts. He filled-in the CEO spot after the previous CEO, Ron Johnson was ousted.

August sales

All that the market and the company’s investors want to know is whether the company has been able to achieve standard stabilization as far as sales are concerned. Another important question is whether the company will be able to gear-up and gain momentum towards the latter half of 2013. The holiday season generally means that retailers can look forward to some change in fortunes.

Back-to-school shopping is expected to bring in some extra sales in August but the Q4 earnings results largely rely on holiday shopping trends. Analysts are waiting and watching and JCP to see what guidance it will provide for the Q3 and Q4. Most other retailers like Walmart and Nordstrom haven’t done any better and investors are losing hope that things will change anytime soon.

Banking on holidays

A prominent analyst is noted to have said that it is only a strong holiday season that will bring about some change in the fortunes of these companies this year. They will have to make quite a few improvements to make it work for them. He went on to say that to a gear extent JC Penney’s failures are attributed to their own faults. The one way the company will be able to set this right is with the right merchandise and appropriate pricing.

About Steve Raasch

Steve Raasch is a breaking news reporter for GDP insider. During his nearly two decades of editorial experience, Steve has covered a variety of topics including small business, health, personal finance, advertising, workplace issues and consumer behavior. Steve is very passionate about his work. Steve earned a master of arts degree in international relations from the Johns Hopkins University School of Advanced International Studies in Washington.

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