J. C. Penney operates department stores in the United States and Puerto Rico. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. The Plano, TX-based company also provides various services, such as styling salons, optical, portrait photography, and custom decorating. The company offers various products and services online via its website, a platform that has been the nursery for industry giants like Amazon (AMZN) and eBay (EBAY). Its direct rivals include Kohl's (KSS) and Macy's (M), among others.
J.C Penney's most recent quarter results least impressive among peers
The company announced December quarter results on Wednesday, February 27, an event that sent the company's shares down the charts at Wall Street. The company's sales and revenues declined shamefully by huge margins. Revenues were down 25 percent for the quarter while Internet sales dipped 34 percent. On the other hand, Macy's online business soared 48 percent and looks set to take over what J.C Penney leaves behind.
Last year, J.C Penney sent home 19,000 staff, and recently trimmed its workforce by 2,200 employees as it sought to cut fixed costs following a tough campaign. Customers are losing trust in the Texas-based company despite the massive experience garnered over the years. The company did not impress in terms of market share, with fewer than 17 percent approaching the retailer's stores.
Contrary to J.C Penney, Macy's Q4 results tramped analyst expectations with sales increasing by 7.2 percent year-over-year to $9.35 billion. This included the extra weeks in the 2012 calendar. However, the management noted that, comparing the same number of weeks as 2011 sales grew by 3.9 percent. Operating income, excluding store closing costs and impairments in the quarter, was approximately $1.4 billion or nearly 15 percent of sales, up 11...