J.C. Penney’s (JCP) remarkable turnaround was brought to a halt when the company released its latest quarterly numbers. Although Penney’s margins improved, the company didn’t meet the estimates due to a huge drop in sales. J.C. Penney reported revenues of $2.76 billion, down nearly 0.5% as compared to the corresponding quarter of the previous year. On the earnings front, J.C. Penney reported a net loss of $188 million as compared to $489 million ($1.94 per share) in the year ago quarter.
The reducing sales are a long-term concern for JC Penney and this is why the company had to revise its guidance for FY 2014 downwards. However, valued at just over $7, I think J.C. Penney is a risk worth taking for investors. Let’s take a look at the reasons that can drive JC Penney higher in the future. Continue Reading »