Retail
JC Penney Faces Prospects of Closing Dozens of Stores Soon
Published:
Last Updated:
J.C. Penney Co. Inc. (NYSE: JCP) closed more than 140 stores last year and faces the prospect it will need to close more soon. Today, it has 860 stores in the United States, including Puerto Rico, along with 98,000 workers. In its recent earnings report, management said most of its revenue decline was due to store closures. However, the full-year guidance was grim enough to warrant a complete examination of how many locations it can really support.
J.C. Penney revenue fell 7.5% to $2.76 billion for the period that ended August 4. Comparable store sales dropped 0.3%. The company lost $101 million, compared to $41 million in the same quarter the year before.
Updated guidance for the balance of the fiscal year:
The Company has revised its 2018 full year guidance as follows:
Comparable store sales: now expected to be approximately flat; and Adjusted earnings per share1: now expected to be ($1.00) to ($0.80)
The company still does not have a chief executive officer, and it would be a wonder that any talented retail executive would want to join the company.
One obvious part of the retail industry is that flat companywide same-store sales mean that some stores have same-store sales that are falling — some falling rapidly. J.C. Penney management is in no position to support these and see if they can be turned around.
Management must have learned a number of lessons when they closed 141 stores last year. Those lessons will extend into the near future. J.C. Penney has too many stores.
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.