Sozzi: By The End Of 2016, J C Penney Will Have 1,000 Stores
In an e-mail to clients on Thursday, Brian Sozzi of Belus Capital Advisors suggested that by the end of 2016, J C Penney Company Inc (NYSE: JCP) will have trimmed its store count to 1,000 stores, down from the projected 1,022 stores to end 2015.
Sozzi previously speculated in October 2014 that J C Penney's announcement of store closures was imminent. The analyst also suggests that big-time store closure announcements from other retailers are also likely within the next month.
“You WILL hear more, big-time store closure announcements,” Sozzi wrote. “I expect buzzy, headline grabbing announcements from Macy's, Abercrombie & Fitch, Aeropsotale, Target (under 10 store closures), Wal-Mart (one by me in Long Island was announced as closing by March).”
Sozzi also suggests that Best Buy Co Inc's (NYSE: BBY) store closure plans are a “wildcard” following discussions with the company's management that suggests the company is “comfortable” with its store base at current levels, but could see some closures (not mass) nevertheless. The analyst also believes that the retailer will exit all of its international operations by the end of 2017.
J C Penney rose 20 percent on Wednesday. Shares were down more than 1 percent at Thursday's opening bell.
Latest Ratings for JCP
|Sep 2016||Guggenheim||Initiates Coverage on||Neutral|
|Aug 2016||Morgan Stanley||Maintains||Underweight|
|May 2016||Morgan Stanley||Maintains||Underweight|
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