Industry News. It’s All Inside. Performance of J.C. Penney Gets Noticed on Wall Street. Second City Style Fashion Blog

November 27, 2006 • Shopping


Who knew? JC Penny has it going on. Actually I heard rumblings of this from my father who follows these things. According to an article by Vicki Young in today’s WWD, JC Penny is ahead of projections and just in time for the holidays.

Reaching its long-range targets two years ahead of plan has made shares
of J.C. Penney the turnaround story and holiday pick for 2006.
expects to hit its goals by 2007 instead of 2009, and Wall Street is
lauding its accomplishments both in its real estate portfolio and in

to Citigroup Global Markets analyst Deborah Weinswig, who has J.C.
Penney as her top choice for 2006, the retailer experienced a lift
prior to the Macy’s national relaunch this September, given the
disruptions that took place in the former May stores last year. She
added that the company met its plan to open 28 new stores in 2006, and
plans to open 50 more new stores each year in 2007, 2008 and 2009 in
mostly off-the-mall formats. As for the new stores this year, she said
they all showcased upgraded features intended to make the retailer an
“easy and exciting place to shop with visually appealing displays to
showcase merchandise…and appearance elements that highlight specific


JP Morgan analyst Charles Grom wrote that J.C. Penney is firing on all
cylinders following a very strong third quarter in which earnings per
share rose 34% year-over-year on top of an 89.4 increase last
year. While Grom mostly liked what he saw from the company reports
during its third-quarter conference call, he cautioned that for the
“third consecutive quarter, [the retailer] beat its revised outlook
just a week after its final update. This may come back to haunt [J.C.
Penney] down the road when this trend doesn’t repeat itself.”

J.C. Penney isn’t the only retailer that posted strong
third-quarter results. It competes with main rival Kohl’s Corp. in many
of the same geographic and merchandise markets.

continues to fire on all cylinders across all categories. We expect
top-line momentum to continue into the fourth quarter,” wrote Adrianne
Shapira, analyst at Goldman Sachs.

Source: WWD

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