Can J.C. Penney Stock Rebound?
T = Trends for a Stock’s Movement
J.C. Penney is a retailer operating more than 1,000 department stores in just about every state in the United States and Puerto Rico. Its business consists of selling merchandise and services to consumers through its department stores and website. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora, and home furnishings. The company has not done too well in recent years, but it is doing what it can to be a top provider of apparel and related products.
J.C. Penney rattled investors Wednesday by saying it is “pleased” with its holiday sales performance but without disclosing any specific figures. The struggling department-store chain had touted improving sales in each of the previous two months, each time giving details of its sales growth. The markets automatically assumed the worst about the departure from that precedent, sending Penney’s stock down 8 percent in morning trading. “The length of JCP’s holiday update tells you everything you need to know about the company’s performance during the five-week December period,” Charles Grom, an analyst at Sterne Agee, wrote to clients. “Said differently, our gut tells us that if JCP had a good print in their back pocket — they would have disclosed it in far greater detail.”