Why is JCPenney stock so low?
J.C. Penney ( JCPN. Q ) has struggled with weak sales and profitability for nearly a decade due to a failed makeover attempt and falling mall traffic. The COVID-19 pandemic was the last straw for the long-suffering department store chain, forcing it to file for bankruptcy in May.Aug 26, 2020
Will JCPenney stock recover?
2. JCPenney shareholders will get no monetary recovery and their stock is cancelled.Oct 22, 2020
Is JCP stock worthless now?
Investors can still trade JCP — it's currently at around $0.20 — during the bankruptcy proceedings, but the stock is still at risk of becoming worthless....How far JCP stock has fallen.DatePriceFebruary 2019$1.30February 2020$0.7511 more rows•May 18, 2020
Why JCPenney is failing?
The company was saddled with debt and spent the last decade with a continual turnover in CEOs, new store designs that couldn't spark interest, initiatives and rebrands that didn't resonate with customers. The once-beloved retailer has been unprofitable since 2010 with net losses of $4.5 billion.Jan 8, 2021
How much is JCPenney stock worth?
Key Turning Points52-Week High1.2500Fibonacci 50%0.6550Fibonacci 38.2%0.5146Last Price0.145952-Week Low0.06001 more row•Jan 7, 2021
What happens if Amazon buys JCPenney?
If Amazon takes over JC Penney's stores, they could become pickup locations for online customers. That might speed up Amazon's delivery times and cut Amazon's costs. Plus, the stores would help the firm cut down its emissions.Jun 18, 2020
Who owns JCPenney?
O'Neal is the second-largest individual shareholder of Authentic Brands Group, the company behind dozens of brand and retailer acquisitions, including Forever 21, Barneys New York, JCPenney and most recently, Reebok.Dec 2, 2021
Why is Sephora leaving JCPenney?
Sephora parted ways with Penney in favor of pushing its store-within-a-store concept to Kohl's, leaving Penney without a major beauty presence.Oct 4, 2021
Is JCPenney profitable?
For instance, JCPenney reportedly hasn't turned a profit since 2010, and its annual sales have fallen every year since 2016. The chain lost $1.3 billion in 2020's first 10 months, up 345 percent from the already high $295 million of red ink it saw in the same period the previous year.Jan 6, 2021
Who is JCPenney target market?
During this morning's third quarter conference call, CEO Jill Soltau defined the target customer as “the all-in shopping enthusiast” – a consumer who loves mall shopping and already makes purchases at JCPenney, according to the company's research.Nov 18, 2019
What happened
Shares of J.C. Penney (NYSE: JCP) were tumbling today for the second day in a row. On Monday, when the ailing department store's stock gave up 5.6%, it largely was due to the broad-market sell-off on news of the deteriorating trade situation with China. But today's decline came on a morning when the S&P 500 was up slightly, signaling that J.C.
So what
It's unclear what percentage of J.C. Penney's inventory is made in China, but for most retailers it's substantial. And there's little reason to believe that Penney would be any different since China has made itself the hub of global apparel manufacturing over the last generation.
Now what
J.C. Penney is unprofitable under generally accepted accounting principles ( GAAP ), and is bleeding sales. It faces a $4 billion debt burden and mounting competition from Amazon.com and the like. The rats are scurrying off the ship; pretty soon, the only value left in the company will be for salvage.
Can JCP Hang?
Macy’s Inc (NYSE: M ), Kohl’s Corporation (NYSE: KSS ), JCPenney and countless others have struggled. But where does JCP stock stack up? The company’s market cap has dwindled down to just $1 billion. I know it feels like a long time since Penney’s was relevant, but its demise has been swift.
Drilling Down on JCP Stock
Here’s the big problem with JCPenney. On a trailing basis, JCP sports gross margins of about 35%. That’s not horrible, but its sub-2% operating margins and negative profit margin are a concern. That concern is exacerbated by its lack of sales.
