Brian Sozzi Comments On J C Penney's Q4 Report, Notes Sephora And Disney Store Growth
“The department store retailer reported that its fourth-quarter same-store sales growth would clock in at 3.7 percent, the upper-end of its 2 percent to 4 percent outlook. It marked a rebound from J.C. Penney's dismal holiday season last year, where same-store sales only rose 2 percent and aggressive discounting led to an adjusted loss of $206 million,” according to Sozzi.
“The company's chief merchant, Liz Sweeney, noted that the presentation of women's handbags in the store was "insufficient," characterized by merchandise boringly sitting out on racks. That will start to change this year as J.C. Penney creates new shopping environments for handbags, footwear and watches. These new environments will feature improved fixtures, tables, mannequins and layouts."
To drive growth, Sozzi noted that 160 more Walt Disney Co (NYSE: DIS) shops will be opening soon in J C Penney stores, bringing the total to 650, or 60 percent of the store base. Sephora, “where sales have increased by a "double-digit" percentage for much of 2014,” will expand beyond its existing 500 store base and set-ups will be expanded up to 60 percent.
J C Penney recently traded at $7.83, up 19.2 percent.
Latest Ratings for JCP
|Feb 2017||B. Riley||Downgrades||Buy||Neutral|
|Feb 2017||Morgan Stanley||Upgrades||Underweight||Equal-Weight|
|Feb 2017||Susquehanna||Initiates Coverage On||Positive|
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