Retail Guru Brian Sozzi Remains A JC Penney Skeptic Following Q4 Results
Brian Sozzi, chief equities strategist at Belus Capital Advisors, released a note following J.C. Penney's (NYSE: JCP) bullish fourth quarter earnings report. Sozzi compared the report to “the smile of a cute puppy” that lures you from afar. Sozzi goes on to warn the same puppy “could pee on you if not careful to move out of the way.”
Women and children's apparel was not a top-performing area, which raises concerns about J.C. Penney's ability to “earn profits in must-shop periods such as back to school and the holidays,” Sozzi said.
“FY14 guidance has outlined a mid-single digit positive comp,” but “in order to survive, J.C. Penney must be now transitioning to double digit percentage positive comps off year earlier AND renewed promotional activity in the store,” warned the Belus analyst.
Sozzi reiterated a Selling rating on shares of J.C. Penney following the quarterly figures.
Investors do indeed seem to be hypnotized by the puppy's smile; in Wednesday's post-market session, the stock is trading up more than 13 percent to around $6.75.
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