+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Unfortunately, JC Penney Left Out A Bunch Of Crucial Details In Its Optimistic Press Release

Nov 7, 2013, 19:28 IST

via YouTube

Earlier today, J.C. announced that comparable store sales climbed 0.9%, which is good news for a retailer that saw sales fall 25% in 2012.

Advertisement

CEO Myron Ullman added that the company's gross profit margin was hurt by lower clearance margins.

And that's about all they said.

"Although JC Penney continues to stress that trends in sales are heading in the right direction (disclosure: am intrigued by the trajectory in gross margins as mentioned by Mike Ullman), there remains a little overlooked aspect to the entire newfound "bull" opinion on the stock," warned retail guru Brian Sozzi of Belus Capital Advisors.

"[M]entions of profits are non-existent, as is further color on the 3Q13 cash burn rate," added Sozzi. "I believe receiving factual numbers on each topic are required in order to think that JC Penney will win the "Comeback Kid of 2014" in the stock market; for the time being it's apparent that a gross margin still under intense pressure from two angles (lower margins on clearance merchandise and increased promotional events) are what's driving the profound sales rebound, therefore constraining profit potential and maintaining caution on the liquidity of the company."

Advertisement

J.C. Penney will announce its full Q3 financial result on November 20 before the opening bell.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article