J.C. Penney Shrugs Off Q2 Results With Store Remakes and 2 Other Hot Stocks to Watch
J.C. Penney & Co. (NYSE:JCP): Current price $13.32
Hedge-fund investors that include J. Kyle Bass are still betting on the iconic retailer, but Chief Executive Mike Ullman is wasting no time following the second-quarter results that he would likely prefer to forget by endeavoring to retrieve shoppers alienated during the tenure of Chief Executive Ron Johnson — by reversing many of his changes that did the damage. Penney said that it intends to close some of the home-goods boutiques from the Johnson administration, but it has not indicated which.
In hopes of improving the numbers, the company will devote extra floor space to towels, cooking utensils, and more profitable categories like luggage and window treatments. Analyst Liz Dunn at Macquarie Group observed Tuesday on Bloomberg Television that, “The third quarter is make or break,” rating the shares Neutral, which is the equivalent of Hold.
Meanwhile, analysts estimate that J.C. Penney will continue to report losses for the next four quarters, but with each loss smaller than the results the firm reported Tuesday.