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JCPenney Reports Horrific Results, Stock Plunges

Tyler Durden's picture





 

At what point does Bill Ackman throw in the towel and admit that his latest windmill crusade is unsalvageable? Perhaps somewhere around now:

  • Q4 EPS: ($1.95), Exp. ($0.19) - No, there was no decimal comma error here.
  • Q4 Revenues: $3.884 billion, Exp. $4.09 billion. This includes a "free" 53rd week in the year which generated $163 million. Ex this, Q4 revenue was $3.721 billion.
  • Q4 Comp store sales excluding the 53rd week were down 31.7%
  • Q4 Interent sales down 34.4%  - must be the store layout's fault
  • Q4 Gross margin: 23.8%, Exp. 30.9%;  (30.2% last); "Gross margin was impacted by lower than expected sales and a higher level of clearance merchandise sales related to inventory reductions in 2012"
  • The company's cash declined by $577 million, which is now down to just $930 million. More than all of the company's cash came from Inventory (net working capital) which generated some $1.021 billion in the quarter. 
  • 2012 cash burn was a gargantuan $906 million; this compares to cash flow of +$23 million in 2011.
  • Company is down to $2.3 billion in inventory. We wonder how the credit facility will feel about this.
  • Speaking of credit facility, JCP had no borrowings under its 2012 Revolver, and about $1.3 billion available net of L/Cs. Expect these numbers to change.

And so on. Stock should be down much more, but someone keeps on buying it after hours to telegraph that this epic disaster was "expected"... though as the evening wears on reality sets in... -10% now

Source: Q4 earnings release

 


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Wed, 02/27/2013 - 17:55 | Link to Comment Silver Bug
Silver Bug's picture

Don't worry Ben will just fill the gap.

 

http://schiffblog.blogspot.ca/

Wed, 02/27/2013 - 17:59 | Link to Comment Kitler
Kitler's picture

Things must be getting worse.

People are becoming JCPenney-pinchers.

Wed, 02/27/2013 - 18:21 | Link to Comment nope-1004
nope-1004's picture

Things aren't getting much worse.  But the idiots at the Fed will keep goosing stocks in the face of abject failure.  That's called "recovery".

Wed, 02/27/2013 - 18:24 | Link to Comment MoneyThangs
MoneyThangs's picture

You can't buy stocks if your dead.. Hehe suckers

Wed, 02/27/2013 - 18:51 | Link to Comment camaro68ss
camaro68ss's picture

No, JC Pennys cant go bankrupt. where will i get new underwear everytime ZH scares the S*** out of me.

Wed, 02/27/2013 - 19:48 | Link to Comment Fredo Corleone
Fredo Corleone's picture

JC Penney simply needs to revitalize their image with some "back to basics" traditional and niche apparel.

They can begin with a bridal line:

http://s3.amazonaws.com/sites.wpengine/scelebs/wp-content/old_pictures/e...

Wed, 02/27/2013 - 20:13 | Link to Comment Karlus
Karlus's picture

I think they need a fresh new spokesperson that has an alternate lifestyle and perhaps a popular daytime show. Someone who represents the "new JCPenny"

Wed, 02/27/2013 - 20:23 | Link to Comment Fredo Corleone
Fredo Corleone's picture

Excellent proposition. Curious, that Penney's crack management cadre has not considered this.

Wed, 02/27/2013 - 20:41 | Link to Comment NoDebt
NoDebt's picture

Or start selling commemorative edition Lawn Darts to match their stock performance.

Remember Lawn Darts from the 70s?  Fun, until you stuck one into the top of your neighbor's kid's skull when he pops through the hedges unexpectedly to see what you're doing.  Ah, good times.  Good times.

 

Wed, 02/27/2013 - 20:55 | Link to Comment mjcOH1
mjcOH1's picture

I can remember when the middle class went to JC Penny, back when we had a middle class.

Thu, 02/28/2013 - 01:55 | Link to Comment Common_Cents22
Common_Cents22's picture

They just need to change the name to JCP, hip and cool!  They'll come flocking!

Wed, 02/27/2013 - 20:52 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

camaro, you will have to buy your britches at JCPenney's broke twin sister, Sears, before they go tits up also.

Wed, 02/27/2013 - 21:15 | Link to Comment Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"where will i get new underwear everytime ZH scares the S*** out of me."

You're right! You certainly won't get it at Penney's.

I used to buy ALL of my socks, underware and shirts at Penney's (they had their own brand- Stafford- which was high quality). What's left is CRAP and other manufacturers that are not as good as what you find at Walmart.

It's like Penney's hired a bunch of people from their competition that came in and SABOTAGED Penney's (including their senior buyer).

I am not pleased with this situation (I don't give a crap about the stock price).

Thu, 02/28/2013 - 02:47 | Link to Comment Kprime
Kprime's picture

I loved the Stafford brand.  I bought all my clothes there (JCP) for years.  Now, I have not been to JC in about 4 years.

Thu, 02/28/2013 - 08:17 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

if they could get ellen to run ads for them 24/7 why I would rush back to JCP. I was a hater and just stopped buying there with that homosexual love move..it was brilliant of target to get their guy, will maybe guy is the wrong term, in there.

Thu, 02/28/2013 - 08:28 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

JCP, free advice: start selling guns and ammo. drop expensive mall stores, go mail order, have adds with mom's and dads and rosey cheek kids..fire all your ex suite big wigs.

Wed, 02/27/2013 - 19:22 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

For those who think that the Fed will continue to fill the gap, guess again!

The Fed is a private entity no different than BP; don't expect the Fed to mop-up the spill they recklessly created forever....correction; don't expect the Fed to mop-up the spill they wilfully managed to facilitate the Holdren DC-to-LDC wealth transfer ideology. Sorry for the bad news but, get ready for the Raw Prawn America. Welcome to the bottom of the 9th in the Capitalism.

The Fed WILL exit eventually, take right-offs, and losses on the North American Division.

“North American Division” WTF are you talking about TwoShortPlanks?

Yes, the Fed is merely the North American Central Banking Division under the Bank for International Settlements. Other divisions of the BIS (namely the CBs of the emerging economies) are faring quite well. This is what war in the Middle East is all about; not Oil, Gold or Lithium….the right to print a nation’s money supply….CONTROL...how are those dots connecting people?!

I'm guessing the likes of China (PBoC) and Russia (Putin Bank, AKA CBR) have cut a deal.
http://www.reuters.com/article/2013/02/27/russia-cbank-idUSL6N0BR7FD20130227

This has been an Agenda21 announcement (Home of the Money Monarchy)...."and may the odds forever be in your favour"

Wed, 02/27/2013 - 19:32 | Link to Comment Karl von Bahnhof
Karl von Bahnhof's picture

2 sp
You colleague +10

Wed, 02/27/2013 - 19:53 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

The Mordor Monetary Monarchy Tower, financial hub of the Monarchy HQ (United Nations), and home of Agenda21.
http://www.bis.org/about/buildings.htm

This is the Mordor Monetary Monarchy Tower #1 (old premises): http://www.bis.org/images/photo_gallery/Botta1.jpg, http://www.bis.org/images/photo_gallery/Botta2.jpg, http://www.flickr.com/photos/stonechat/4696601758/

Knights Templar Heaume XIII: http://www.outfit4events.com/templar-great-helmet-pi-427.html, http://www.outfit4events.com/knights-templar-great-helmet-pi-431.html

Knights Templar (St George) Flag: http://www.theflagshop.co.uk/st-george-england-flag-659-p.asp
Swiss National Flag: http://www.theflagshop.co.uk/switzerland-flag-8ft-x-5ft-5026-p.asp

As the months roll past and the collapse progresses, something tells me this won't seem so....nuts.

Thu, 02/28/2013 - 09:20 | Link to Comment Disenchanted
Disenchanted's picture

What a coinky-dink...

re: Knights Templar (St George) Flag: http://www.theflagshop.co.uk/st-george-england-flag-659-p.asp

 

City of London flag:

http://farm4.staticflickr.com/3137/2700196371_fc5fca9530_z.jpg

Wed, 02/27/2013 - 20:27 | Link to Comment Larry Dallas
Larry Dallas's picture

Guess Ellen DeGeneris didn't really help, either.

I mean what self respecting donut-bumper shops at JCP?

Thu, 02/28/2013 - 05:31 | Link to Comment francis_sawyer
francis_sawyer's picture

Whocoodanode that hiring a self absorbed, pompous, talentless, ugly as sin, dike ass bitch as a spokesperson would have ever cut into potential image & sales...?

~~~

Emphasis on 'TALENTLESS' in that first equation... I met the fucking bitch BEFORE she was ever famous [& my very first impression, BEFORE I KNEW ANYTHING, was that she was self absorbed, pompous, talentless, not attractive, & a 2 bit rank comedian]... She IS, in fact, 'TALENTLESS' & more famous for being a dike than anything else...

Amerika ~ Fuck yea!

Because IT MATTERS NOT [in this country] if your TRUE FIRST IMPRESSIONS are valid or not...

- Because I think EdG is 'talentless' ~ that probably makes me 'HOMOPHOBIC' [even though, as mentioned above, it was many years before she even became famous, or 'came out of the closet']

- If I criticize Obama ~ I'm a 'RACIST'

- If I criticize BERNANKE, THE FED, KRUGMAN, GREENSPAN, RUBIN, BLANKFEIN, SHUMER, FEINSTEIN [or company]... I'm 'ANTI-SEMITIC'

~~~

Sorry, I'll try & get with the program...

It's like the whole fucking purpose of America is to say 'YES WE DID'...

- Elect a black POTUS... YES WE DID!

- Give a lesbian a talk show...YES WE DID!

- Appoint a goy Central Bank Chairperson... Y-... Oh wait!

Wed, 02/27/2013 - 18:00 | Link to Comment Temporalist
Temporalist's picture

"Nothing a massive bailout from the taxpayers can't fix. " - Every Kleptocrat Ever

Wed, 02/27/2013 - 18:01 | Link to Comment Jethro
Jethro's picture

That's what I was thinking too.  Maybe the First Wookie will get her own clothing line out of the deal?

Wed, 02/27/2013 - 18:19 | Link to Comment FL_Conservative
FL_Conservative's picture

Crap!  First Wookie!!  Holy shit!  LMAO so hard I passed water through my nose! 

Wed, 02/27/2013 - 20:16 | Link to Comment Karlus
Karlus's picture

How cool would it be if FLOTUS was the new spokesperson? They would have to pay her some serious miillions. Could have some cameo commercials with Hillary doing the "Mom Jeans" dance.

Reminds me, what is Chelsea C doing these days?

Thu, 02/28/2013 - 08:22 | Link to Comment Midas
Midas's picture

Yeah, I used First Wookie the other day and I got to thinking it might be popular so I did a Yahoo search.  If you are not worried about drones, do a Yahoo image search for first wookie, but make sure you aren't eating or drinking anything.

Thu, 02/28/2013 - 09:24 | Link to Comment Disenchanted
Thu, 02/28/2013 - 00:28 | Link to Comment nerfCash
nerfCash's picture

And her men's collection will be the Lt. Commander Worf line.  She can model for it by not plucking her eyebrow for a week.

Wed, 02/27/2013 - 18:01 | Link to Comment Doubleguns
Doubleguns's picture

New name. Just a Penny!!!

Wed, 02/27/2013 - 21:26 | Link to Comment CheapBastard
CheapBastard's picture

Temporalist,

JCPennys is not GM.

Wed, 02/27/2013 - 19:28 | Link to Comment daxtonbrown
daxtonbrown's picture

Who could have seen this one coming?

Wed, 02/27/2013 - 18:05 | Link to Comment TruthInSunshine
TruthInSunshine's picture

BTFD. I'm serious. Bernanke has eliminated the need for positive earnings (or revenue for that matter), market makers (since everyone long wins), a middle class that's sizeable or has anything remotely resembling purchasing power, or anything other than a "buy stocks" button.

JCP will be a 10 bagger by the end of 2013 & The e*trade baby will be on the upcoming $200 FRN.

Group On is seeing a tremendous buying opportunity here, also (along with every other publicly & efficiently trade equity on every index) as its business model of creating a herd of one-time extreme couponers trampling stores and destroying their margins to never return is no longer relevant.

Bernanktopia.

Wed, 02/27/2013 - 18:08 | Link to Comment CH1
CH1's picture

I dunno... at some point, the game has to fall apart. I can't tell when, but I don't want to bet on it either.

You may be right, but I'm out altogether. I don't want to play in a rigged game.

Good luck, though.

Wed, 02/27/2013 - 18:29 | Link to Comment smlbizman
smlbizman's picture

it is falling apart...what we all been waiting for has been here all along.....a slow disgusting grind until like 60% of the country is detroit....

Wed, 02/27/2013 - 18:10 | Link to Comment Cdad
Cdad's picture

BTFD?  You don't say, brother Truth.  Huh...never heard that one before.  

Well then, trot on over the land of bras and panties, as they beat, or missed due to recurring one time charges, and are optimistic going forward, while seriously guiding down Q1...depending on which cherry, no pun intended, you decide to pick. So BTFD in Self-involved American Beauty Queens via Victoria Secret...or sell the ramp...errrr...not sure.

You need the skills of a seasoned migrant field hand to properly pick stock catalysts in this Joke-a-thon we used to call the "market."

Thank you, Ben Bernanke, for this wasteland you have created for us.

 

Wed, 02/27/2013 - 18:47 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I watched approximately 3 minutes of Bloomturd today (which is about 100x the amount of cnBSc or Bloomturd I've watched in the last 3 years) and the bimbo-bot was reporting in gushing hyperbole how Limited Brands had a blow out quarter thanks in huge part to the Victoria Secrets Angels while techno music blared in the background and splashy graphics and eye candy filled the screen from top to bottom.

Viva la Idiocracy!

Wed, 02/27/2013 - 19:10 | Link to Comment Cdad
Cdad's picture

...wait...now...errrrr...LTD guidance is down for Q1 by a sizeable gap, firm for 2013 on the year [except for that saggy lower bound part....ick], and down for 2014.  Ummm....who knew that bra and panty guys had such fwd visibility.  If I worked there, all the lovely self-involved American Beauty Queens running around, I think I might struggle to see past Thursdays.

Now the earnings on the Q were a beat, but you got to discount that good will impairment....which if you count it destroyed the qtr.  I'm not sure what good will was extended, or why it impaired actual real honest to goodness profits.  Maybe they donated a bunch of bra and panty sets to a good cause....but the 10 Q not being out yet makes it hard to know.

Of course, the RT is reporting that shares fell 1% on the news, but my charts are showing the loss at half of that...and...errr....ummmm....

Hey brother Truth...fuck it...let's go bowling, dude.

Wed, 02/27/2013 - 19:36 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I abide. Bowling it is.

JC Penney could change its name to JC BernaxBux, but the shit's even gettin' real at Whole Foods & Tiffany & Co., so I doubt it would help them at this juncture...

Wed, 02/27/2013 - 21:02 | Link to Comment Cdad
Cdad's picture

Yeah...alright then...bowling.  After all, just because we're bereaved doesn't make us saps....god DAMMIT!

Tiffany and Whole Price Foods...never been in either of them.

I live pretty much in the heart of the heart of the country.  Can meet you halfway to anywhere...so let's clear the calendar then...since the whole shootin' match is about to be in recession anyway.

Cdad 

Wed, 02/27/2013 - 21:05 | Link to Comment willwork4food
willwork4food's picture

***IT's gettin' real at the JC mall outlet-

No ones buying the cool shit they got.  {{why not?}}

Stocks a-tankin' bad so that's what we got-  {youre broke dude}

Yea, it's gettin real at the JC mall outlet.

Wed, 02/27/2013 - 18:20 | Link to Comment Translational Lift
Translational Lift's picture

In this market it's got to be BULLISH..IT.....BTFD....BTFD....BTFD....

New high for the mkt tomorrow!!                             

Wed, 02/27/2013 - 18:15 | Link to Comment Temporalist
Temporalist's picture
Déjà vu: Groupon stock plunges on earnings miss

Once again, shares of Groupon are tanking after daily deals site's earnings missed already-low expectations.

http://money.cnn.com/2013/02/27/technology/groupon-earnings/

Wed, 02/27/2013 - 18:20 | Link to Comment css1971
css1971's picture

See! See!

Didn't I break down yesterday and say exactly that? I've decided to go do some gardening for a while instead.

Wed, 02/27/2013 - 17:58 | Link to Comment trollin4sukrz
trollin4sukrz's picture

Purdy much over for bricknmoarter in this fvkedup retail climate.

Wed, 02/27/2013 - 18:11 | Link to Comment CH1
CH1's picture

Purdy much over for bricknmoarter

Well, it depends who's the better friend of the political regime.

Hollywood should be dead, but the guv is trashing the Internet in order to restore their copyright regime.

It's a plainly fascist world. If you want to get ahead, you have to pay the politicians.

Wed, 02/27/2013 - 17:58 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

Of course this comes out after the markets close... phfffff....

Wed, 02/27/2013 - 17:59 | Link to Comment Temporalist
Temporalist's picture

Yea it made me think it was Friday.

Wed, 02/27/2013 - 17:59 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Should just put any adverse accounting measure off-balance sheet. Problem solved.

Wed, 02/27/2013 - 18:35 | Link to Comment ZerOhead
ZerOhead's picture

Now you're thinking...

How about suspending those bothersome accounting rules and just reporting the sales you would like to have versus the real numbers?

I mean it's still working for the banking sectors' balance sheets (and bonus pools) after all...

Wed, 02/27/2013 - 17:59 | Link to Comment busted by the b...
busted by the bailout's picture

JCP has been walking dead for many months.

This CEO must be the world's worst.  Low prices, no sales?  It would take years to make that marketing switch.  No department store can survive without high regular prices and huge markdown sales, imo

Stick a fork in 'em already and get it over with.

Sears is next.

Wed, 02/27/2013 - 18:02 | Link to Comment Cursive
Cursive's picture

@busted by the bailout

LOL.  It's been 3-5 years, so SHLD must be preparing another bankruptcy filing.  Will these zombie real estate companies never die?

Wed, 02/27/2013 - 18:08 | Link to Comment otto skorzeny
otto skorzeny's picture

that doesn't mean our retarded Irish Guv here in IL won't give SHLD big tax breaks of a couple hundred million $ -let the middle class(what's left of those in IL that doesn't get a fat govt paycheck) get fucked instead

Wed, 02/27/2013 - 18:25 | Link to Comment TruthInSunshine
TruthInSunshine's picture

SHLD as a zombie real estate company is EXACTLY correct. Lampert leveraged onto and into it when the commercial real estate bubble was full head on of steam, thinking he could dissect and spin the soil beneath Kmart & Sears locations into bank, and since the depression set in, he's actually been trying to put lipstick on the pig (probably to try and sell it to BenBernankio, Vice Chairman of Maiden Lane REIT I - XXXVII) at 1,500x book value (wait, that's a negative number...)...

Wed, 02/27/2013 - 23:38 | Link to Comment markitect
markitect's picture

I still try to support Sears. I like the fact I can get a metric socket, garlic crusher and jeans in one trip. I don't care if I can save $5 on a microwave somewhere else, bought all new Bosch appliances there last fall. Even bought the misses some winshield wiper blades there for Christmas. If they kill Sears I'm going full retard on somebody's ass.

Fri, 03/01/2013 - 03:49 | Link to Comment SilverFish
SilverFish's picture

"Even bought the misses some winshield wiper blades there for Christmas."

 

 

Could you please refrain from typing that shit in here. My wife is bound to get jealous.

Wed, 02/27/2013 - 18:13 | Link to Comment negative rates
negative rates's picture

The Sears mechanic,  the new loneiest man in town, forget the Maytag man, he has plenty of work. 

Wed, 02/27/2013 - 18:16 | Link to Comment css1971
css1971's picture

No, I think that honour goes to Elop.

Took the world's biggest (number 1) mobile phone company wiped out both their entire primary product portfolio, and the next generation portfolio they had lined up, all without a replacement in place. Something like 18 billion euros market cap gone before they hit bottom and even started coming back up.

Wed, 02/27/2013 - 18:42 | Link to Comment Z'
Z''s picture

I have continually been amazed at Elop's ability to job-hop his way up the corporate ladder.  Already before joining MSFT he was known as a short-term job climber, and there was some question as to whether he would stay and whether front-loaded hiring incentives would be wasted money.

http://en.wikipedia.org/wiki/Elop

Thu, 02/28/2013 - 01:57 | Link to Comment Common_Cents22
Common_Cents22's picture

Those harvard elite types are too smart for their own good.   It'd take billions and years to educate consumers on the new approach.   duh....

Thu, 02/28/2013 - 08:16 | Link to Comment neidermeyer
neidermeyer's picture

JCP does not have low prices , absurdly high prices YES , sales... gimmicky sales , quality products ,, SOMETIMES but at higher prices than you can EASILY find elsewhere... I bought there once before Christmas ,, advertised deep discount item ... This ones toast without a FIRST CLASS TRAUMA TEAM for management and they don't have it.

The middle class is toast and JCP cannot occupy prime retail space and get the profits it needs from a dwindling customer base...

Sears? still has decent items at good prices and sales people that know their stuff... SHLD isn't selling much prime mall real estate though ... it's like trying to sell the prettiest corner lot in Chernobyl. and it ain't getting better.

 

 

Wed, 02/27/2013 - 18:01 | Link to Comment otto skorzeny
otto skorzeny's picture

martha stewart was wise to hitch her wagon to this star. quick-where's ellen degenerate selling her custom line of strap-ons?

Wed, 02/27/2013 - 18:07 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

+10 coffee spitter

Wed, 02/27/2013 - 18:00 | Link to Comment economessed
economessed's picture

Hmmmmm.  Maybe Wal-Mart was right?

Wed, 02/27/2013 - 18:44 | Link to Comment kito
kito's picture

this is more about internet sales killing the big box stores........im not buying the demise of the consumer until interest rates rise...........until then they can borrow till they drop..........................

Wed, 02/27/2013 - 18:01 | Link to Comment Cursive
Cursive's picture

It's a shame JCP couldn't make it in this raging recovery.  According to CNBS, it's a retailer's wet dream, right?

Wed, 02/27/2013 - 18:03 | Link to Comment otto skorzeny
otto skorzeny's picture

maria b and her fellow CNBC tools just told me that the little guys are slowly getting back in cause the action is hot and nobody wants to miss the QE rocket ride!!!!

Wed, 02/27/2013 - 18:15 | Link to Comment Kitler
Kitler's picture

The only hot action here is JCPenney's rate of cash burn. At $906MM it's a goddamn inferno!

CNBC is largely correct however, it's a rocket ride alright...

http://www.google.ca/imgres?imgurl=http://80sand90spd7.wikispaces.com/fi...

Wed, 02/27/2013 - 18:03 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

I don't know about you guys, but I'm excited about the "mall within a mall" concept.  It's like, being at a mall, but you're actually in JC Penny, which is probably in a mall.  It's an onion of innovation.

Wed, 02/27/2013 - 18:06 | Link to Comment Temporalist
Temporalist's picture

As Mr. Panos would say... "Genius! Genius, genius, genius!"

http://www.youtube.com/watch?v=YQwzwrhNoOk

Wed, 02/27/2013 - 18:47 | Link to Comment dobermangang
dobermangang's picture

Don't forget you can do yoga at JCP.  At least that was part of their new vision of JCP.  Seriously.  You just can't make this stuff up.

http://www.bizjournals.com/dallas/blog/2012/08/is-jc-penney-your-new-yog...

Wed, 02/27/2013 - 21:05 | Link to Comment Miss Expectations
Miss Expectations's picture

Ron Johnson is some sort of retailing retard.

Wed, 02/27/2013 - 18:01 | Link to Comment gaoptimize
gaoptimize's picture

Walmart doing well relatively speaking.  Expect the overall market to react, but how?  I could be certain five years ago, not so much now.

Wed, 02/27/2013 - 18:11 | Link to Comment otto skorzeny
otto skorzeny's picture

not according to their latest numbers-if it weren't for SNAP/EBT Walmart would be out of business (I heard 40% of their grocery sales)

Wed, 02/27/2013 - 18:47 | Link to Comment McMolotov
McMolotov's picture

SNAP/EBT is supposed to kill two birds with one stone. It eliminates the bread line/soup kitchen PR disaster so we don't realize this is just like the 1930s all over again, and it funnels money to certain retailers to give the illusion that business is getting better or at least not getting worse.

So when a company like Walmart has shitty numbers like they did last month, people should be concerned about how bad things actually are.

Wed, 02/27/2013 - 18:54 | Link to Comment Westcoastliberal
Westcoastliberal's picture

You're spot on Molotov.  We're on the edge of the cliff, it's beginning to crumble and it's a LONNNNNGGGGG way down!

Wed, 02/27/2013 - 20:57 | Link to Comment Mike in GA
Mike in GA's picture

But that leaves room for growth, right?  Isn't the SNAP?EBT number 47%? 

Moar Walmarts!  Growth story!  BTFD!  Yippeee!

Wed, 02/27/2013 - 18:01 | Link to Comment Jason T
Jason T's picture

i haven't been to JC Penny in a long time.. 10 years maybe.. but I did like that store.   .. got my last pair of jeans at Sears ..bitchez!

Wed, 02/27/2013 - 18:03 | Link to Comment otto skorzeny
otto skorzeny's picture

mucho mexicanos (sears too)

Wed, 02/27/2013 - 18:13 | Link to Comment CH1
CH1's picture

mucho mexicanos

Well, shit, someone has to work!

Wed, 02/27/2013 - 18:03 | Link to Comment Cman5000
Cman5000's picture

Best Buy comes out Thursday I'm sure they will be Horrific also..

Wed, 02/27/2013 - 18:06 | Link to Comment medium giraffe
medium giraffe's picture

Ackman, you are a fucking joke.  Retail?  How can you be so stupid?

Darth Ichan didn't need to lift a finger.

Wed, 02/27/2013 - 23:16 | Link to Comment earnyermoney
earnyermoney's picture

This the dude trying to steal Apple's cash?

Wed, 02/27/2013 - 18:07 | Link to Comment trollin4sukrz
trollin4sukrz's picture

Just when you thought it was safe they release earnings..again... Never fear friends, go long for the dow is soon to be 60,000 and everyone will be buying gianter stupdesouer double HD3D tvs on the Unicorn card. All will be wonderful in Ever Always land.

Wed, 02/27/2013 - 18:07 | Link to Comment virgilcaine
virgilcaine's picture

To the retail boneyard.

Wed, 02/27/2013 - 18:09 | Link to Comment ShankyS
ShankyS's picture

mmmKay - so there is no ministry of truth anymore so these people ar just total idiots who refuse to game the system with everyone else? AH! They are pulling an INTC trick! Lower the hurdle into the ever rising tide of QE - These folks are much smarter than they look. 

Wed, 02/27/2013 - 18:08 | Link to Comment natronic
natronic's picture

Let Bernanke take over JCP he'll print them back to the black!!!

Wed, 02/27/2013 - 18:11 | Link to Comment buzzsaw99
buzzsaw99's picture

They are trying to market hep clothes for the young, thin, and beautiful to a bunch of old, fat, and ugly customers.

Wed, 02/27/2013 - 18:42 | Link to Comment dobermangang
dobermangang's picture

And the hip, young customers Johnson wanted, don't have jobs or full time jobs and have huge student loan debt.  Even the gays don't shop at JCP.  They want sales and large discounts like everybody else.  Trying to get the masses to pay higher margins for stuff("every day low prices") during a depression was simply insane.  People want and need their coupons!

Wed, 02/27/2013 - 18:51 | Link to Comment buzzsaw99
buzzsaw99's picture

exactly. the people they are trying to sell to are tapped out. if they have any extra money they spend it on igadgets. i see young people wearing shorts and flip flops even when it is cold outside. they don't care about fashion much anymore and what fashion they do care about is hideous. (ug boots, etc.)

Wed, 02/27/2013 - 18:12 | Link to Comment semperfi
semperfi's picture

R.I.P  JCP.     Sears up next.

Wed, 02/27/2013 - 18:14 | Link to Comment Cman5000
Cman5000's picture

Add K-Mapart,Radio Shack and Best Buy to that list

Wed, 02/27/2013 - 18:18 | Link to Comment Temporalist
Temporalist's picture

RadioShack will hold on I think.  They have small stores, now sell smart phones and plans, and most accessories to tech.  They have been beaten down and abused but still keep going.  Or not...

Wed, 02/27/2013 - 18:51 | Link to Comment Westcoastliberal
Westcoastliberal's picture

Now THAT'S a chain that really SHOULD change their name.  As a hobbyist, in past years I visited RS frequently for this or that capacitor, resistor, connector, etc.  What you find there these days are mainly smartphone accessories.  I'll bet the past 3 times I've physically been in an RS they did not have what I was looking for....had to make a trip to Fry's or buy it online.  So my point is, the chain is misnamed according to the inventory they carry; it's no longer a "Radio Shack". Besides "Radio" doesn't really have meaning to the 12-30 demo because they mainly don't use it like older generations.

Wed, 02/27/2013 - 19:12 | Link to Comment lakecity55
lakecity55's picture

they screwed the pooch.

no more components.

i may not have bought many big-ticket items, but it was a regular constant stopping place for stuff.

FU, radio slut!

Wed, 02/27/2013 - 19:25 | Link to Comment dobermangang
dobermangang's picture

They're dead.  I needed a small round battery for my pH meter.  They were selling 1 for around 5 to 6 bucks at all the box stores including Radio Shack.  I could buy 10 batteries for the price of $2.03 with free shipping on Amazon.

Wed, 02/27/2013 - 18:12 | Link to Comment 1C3-N1N3
1C3-N1N3's picture

Today's malls and big box stores = tomorrow's FEMA camps

Wed, 02/27/2013 - 19:46 | Link to Comment Seasmoke
Seasmoke's picture

I would like an old Yankee Candle store for my space. Smells Wonderful.

Wed, 02/27/2013 - 18:13 | Link to Comment q99x2
q99x2's picture

Maybe he is a relative of one of the ones that took over the United States of America.

Wed, 02/27/2013 - 18:15 | Link to Comment buzzsaw99
buzzsaw99's picture

oh, and: BONUS TIME!

Wed, 02/27/2013 - 18:16 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

Has it finally started? Looks like things really are going off a cliff now.

Wed, 02/27/2013 - 18:35 | Link to Comment semperfi
semperfi's picture

fiscal ?

Wed, 02/27/2013 - 18:50 | Link to Comment McMolotov
McMolotov's picture

Fecal?

Wed, 02/27/2013 - 18:19 | Link to Comment Scro
Scro's picture

What goes up must come down.

Wed, 02/27/2013 - 18:20 | Link to Comment Augustus
Augustus's picture

Ackman is just tricking everyone into dumping the shares.  He must be the only buyer.

This plus Herbalife will be the end of this little fellow. 

Wed, 02/27/2013 - 18:24 | Link to Comment FreeMktFisherMN
FreeMktFisherMN's picture

Way to go, RGR. I am almost purely commodities trader but wanted to get in on this and Sturm killed it.

Wed, 02/27/2013 - 18:35 | Link to Comment sdmjake
sdmjake's picture

Indeed... [and the 1Q13 will likely be huge too]

Wed, 02/27/2013 - 18:37 | Link to Comment dobermangang
dobermangang's picture

SWHC reports next week.  RGR had a forward P/E around 22.  SWHC's forward P/E is around 9 (before the large share buyback).  RGR did have great earnings.

Thu, 02/28/2013 - 01:56 | Link to Comment Freddie
Freddie's picture

RGR better start making ammo to go with their guns.  There is no ammo so a RGR handgun makes a good hammer.

Wed, 02/27/2013 - 18:24 | Link to Comment venturen
venturen's picture

It will double tomorrow as Bernanke will buy some with the printed $3 Billion from today....they print $3 Billion extra dollar every single day! 

Wed, 02/27/2013 - 18:35 | Link to Comment dobermangang
dobermangang's picture

They should sell guns and ammo.  They sold guns in the past.

RGR earnings were great.   Guns and ammo are the only things selling well right now.

R.I.P.  JCP.

Wed, 02/27/2013 - 18:35 | Link to Comment ebworthen
ebworthen's picture

They alienated the customers they had left with the lower case "jcp" and Ellen DeGeneres.

What did they expect, to attract the "Buckle" and "Victoria's Secret" crowd?

It's like the Olive Garden serving Big Mac's with Snoop Dog as the spokesperson.

DUH!

Wed, 02/27/2013 - 18:42 | Link to Comment Vashta Nerada
Vashta Nerada's picture

You hit the nail on the head.  I have never seen a retailer try so hard to alienate their core customers.

Wed, 02/27/2013 - 18:45 | Link to Comment Westcoastliberal
Westcoastliberal's picture

Right off the top, as someone with 30 years marketing/advertising experience I sincerely questioned their "name-change" move from J.C. Penney, what's become a household name for oh so many years, to "JCP".  Shorter, yes, familiar, no.  And I didn't see any transitional TV ads such as "JCP, the NEW J.C. Penney" to tie the two together.  IMHO a fundamental mistake.

Wed, 02/27/2013 - 19:08 | Link to Comment BORT
BORT's picture

They went for an audience that isn't there.  The buyers bought for someone other than their customers, and expected some hipsters to show up

Thu, 02/28/2013 - 09:34 | Link to Comment Disenchanted
Disenchanted's picture

JCP = Just Can't Profit?

Wed, 02/27/2013 - 18:45 | Link to Comment lynnybee
lynnybee's picture

even i could have told Ackman not to buy JCPENNY stock;  NO ONE SHOPS THERE !    i get a sick feeling inside of me when i go into Penney's, so i gave up 20 years ago.   going into Penney's is like walking into the Goodwill store ....... YUKKY !!

Wed, 02/27/2013 - 18:56 | Link to Comment John Law Lives
John Law Lives's picture

How long until Chairsatan dispatches Mr. Henry to purchase full containers of junk from JCPenney to boost their sales...

Wed, 02/27/2013 - 19:07 | Link to Comment Mark123
Mark123's picture

So basically the same shady dark pools buying up all forclosed inventory from the banks?  Sounds like a win win to me.  Then we can use smart bomb inventory to destroy all the crap they buy!

Wed, 02/27/2013 - 18:50 | Link to Comment Oldwood
Oldwood's picture

I don't understand. I thought modern corporations made money by firing people. Has JCP run out of people to fire? I don't understand?

Wed, 02/27/2013 - 18:56 | Link to Comment Temporalist
Temporalist's picture

JCP employes about 160,000.  By tomorrow...may be 80k.

Wed, 02/27/2013 - 19:03 | Link to Comment Oldwood
Oldwood's picture

So your saying their stock will likely rise tomorrow. That was scary, I thought they might be done for but with 160,000 souls in equity, they still got it going on!

Wed, 02/27/2013 - 18:51 | Link to Comment Hongcha
Hongcha's picture

The morphine plunger is in the hand and they're really hitting it a lot now.

Problem is, a lot of the $$ is sailing into commodities that the 'small people' (to borrow the BP exec's term) need to survive in this slowly degarding country.

But they have no other ideas.  Pump pump pump.

First whiff of a pause and the DOW will collapse 500 points.

Wed, 02/27/2013 - 21:21 | Link to Comment Son of Loki
Son of Loki's picture

JCP

R.I.P.

Wed, 02/27/2013 - 18:56 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Accept EBT cards - problem solved.

Wed, 02/27/2013 - 18:56 | Link to Comment SheepDog-One
SheepDog-One's picture

In the face of bankruptcy everywhere and a knocked-out consumer, BUT STAWKS! Obviously the correct thing to do!

Wed, 02/27/2013 - 19:07 | Link to Comment dobermangang
dobermangang's picture

Kudos to retail analyst Howard Davidowitz.  He's one of the few, maybe the only one, that knew JCP was headed for disaster.  Check out his videos on youtube.  He's hilarious and pretty good at what he does.

https://www.youtube.com/watch?v=xR_9_0c3WRo

Wed, 02/27/2013 - 19:01 | Link to Comment Oldwood
Oldwood's picture

Everyone in the market thinks they can beat the market, even while admitting its rigged. Is it OK if I just watch? Goldman could IPO a dog turd and someone would bid it up, knowing it was a turd, but convined that someone else will pay more. Just a big stupid game with real consequences for everyone.

Wed, 02/27/2013 - 19:01 | Link to Comment Z'
Z''s picture

Last Christmas I had cause to go to JCP.  Peak holiday shopping season, and I couldn't believe the amount of dead space.  Thinly populated and even empty shelves, and huge spaces on the floor where display racks used to be.  Lots of mdse. on clearance.  Pretty obvious then that something was going on, and that they were likely going under if they couldn't even stock the shelves for the holidays.  I wondered why there didn't even seem to be a pretense of abundance on the mall-level main entry; it was kind of depressed looking.  There were not a lot of cashier stations, and even so the ones that were open were not that busy.  The clerks tried to be friendly and helpful to customers, but were left without much to do in general.  Pity for the employees, they appeared to be quite competent full-timers and not junior part-time seasonal staff.

While I would not have been surprised to see this at many malls in America, this particular mall is usually pretty crowded and difficult to find parking.

Wed, 02/27/2013 - 19:03 | Link to Comment Mark123
Mark123's picture

Just change the name to Amazun and then they don't have to ever make ANY profit and the market cap could easily go to $500 billion.

 

Problem solved, and cost to implement is probably less than five grand.

Wed, 02/27/2013 - 19:08 | Link to Comment busted by the b...
busted by the bailout's picture

Ackman:  Glad to see there's an investor dumber than me.

Wed, 02/27/2013 - 19:09 | Link to Comment lakecity55
lakecity55's picture

but, but, the TV set says things are grrrreat!

 

Wed, 02/27/2013 - 19:12 | Link to Comment Mark123
Mark123's picture

Funny thing...

 

Groupon and JC Penny have about the same market cap these days.  Hmmmm....interesting world we live in. Lesson learned - don't create a bsuiness that has employees - just ideas and marketing people.

Wed, 02/27/2013 - 19:27 | Link to Comment dobermangang
dobermangang's picture

JCP should run a Groupon deal.  Their former customers miss their coupons.

Fri, 03/01/2013 - 04:36 | Link to Comment SilverFish
SilverFish's picture

Who needs coupons when JCP's everyday prices are so low?

 

DEALS, JUST LIKE THESE!!!!

 

Citizen Eco-Drive Skyhawk Mens Titanium Watch

 

JCP price - $640 + 8% sales tax

Amazon price - $468, no sales tax + free s/h

 

coupons shmoupons

Thu, 02/28/2013 - 02:05 | Link to Comment Common_Cents22
Common_Cents22's picture

groupon has had a few 50% off deals on its own stock

Wed, 02/27/2013 - 19:19 | Link to Comment lakecity55
lakecity55's picture

hahaha i bet russia and prc have secretly stashed a lot more Au than they let on.

they are going to pop out with a new pay mechanism which does not use 'dollarz.'

Wed, 02/27/2013 - 19:27 | Link to Comment 22winmag
22winmag's picture

Die retail. Die!

 

Except gun shops.

Wed, 02/27/2013 - 19:32 | Link to Comment Dr_Lucid
Dr_Lucid's picture

The Bernack POMO will not prop the entire market.  He has to concentrate on sectors that will "propel" America.  Like the transports.  So what we are going to see here is the propping up of sectors ( full retard ) and then other sectors like big box retail will be left to die.

Very soon the amount of bad corporate news + exogenous events + utter incompetance will soon outweigh the buffer Bernack can deliver.  The rate of change of uncertainty is growing larger than the linear pattern of support provided by the FED.

 

 

Wed, 02/27/2013 - 20:03 | Link to Comment Z'
Z''s picture

I have sometimes wondered if part of the Fed's reasoning for propping the stock market is to prevent foreign interests from buying U.S. companies under a weak dollar; e.g., the way InBev acquired Anheuser-Busch.  Thus protecting key US interests/infrastructure from foreign ownership.  If that were the case, it would add even more support to your argument that sectors such as Transportation, Tech, etc. would get the buy-in.

Wed, 02/27/2013 - 20:22 | Link to Comment khakuda
khakuda's picture

I don't think so.  If I were in China and had a ton of US dollars, I would buy every American company they let me while my dollars still had value.  I think devaluing dollars actually encourages cross border M&A.  They aren't increasingly keeping our funny money anymore, they are turning it in for oil in the ground, gold and other real assets.

Bernanke is confident that he can debase the currency daily by counterfeiting money and using it buy real assets of value.  The world's holders of dollars who previously traded real products and services are going to want real value in exchange and not confetti.  That's when money velocity surges and inflation takes off.  But, Bernanke is confident that won't happen because he is smarter than the rest of us.

Wed, 02/27/2013 - 20:28 | Link to Comment Dr_Lucid
Dr_Lucid's picture

Totally agree.  While I think the guy is a moron, its hard for me to think that he at least has this much sense to protect US interests.  It could be as simple on a macro level that the Fed and others will say, "...yeah the market is down, but look at the tail wind strength in the core sectors.  The fact that they are holdind up so well gives support to the idea that America is still strong where it counts."

JCP doesn't count.  Union Pacific most certainly counts.  So do the companies that make up housing, industrials and banking.  100% think that there wil be a lot of US companies on the cheap once all is said and done and you are right...they will be ripe for foreign investment.  But given the amount of fires the FED is putting out, they have to choose their battles.

What other Fortune 300 companies will the Fed leave to the vultures?

Wed, 02/27/2013 - 19:54 | Link to Comment orangegeek
orangegeek's picture

The Fed is long JC Penney.

 

Get in there Ben and Barry and buy - you fuckers!!

Wed, 02/27/2013 - 19:55 | Link to Comment khakuda
khakuda's picture

Ben is going to have to amp up the money printer to include $15 billion of Stafford dress basics per month.  If he can buy shitty mortgages, why not buy some crappy clothes, too.

Wed, 02/27/2013 - 20:02 | Link to Comment NoWayJose
NoWayJose's picture

Those darn confident consumers must have upscaled from jcp to Rodeo Drive, Gucci, and Louis Vuitton.

Wed, 02/27/2013 - 20:05 | Link to Comment f16hoser
f16hoser's picture

In other news; JC Penney CEO records record Salary and Stock Options Bonus!

Wed, 02/27/2013 - 20:18 | Link to Comment virgilcaine
virgilcaine's picture

bernank cannot overcome the entire Market it will eat him alive. I think he is starting to realize this.

Wed, 02/27/2013 - 20:10 | Link to Comment buzzsaw99
buzzsaw99's picture

Even if jcp had:

 

1) not hired ellen

2) not changed the name.

3) not stopped giving coupons.

4) changed the labels making a size 10 now a size 6 (their clothes just fit me better!)

they would still be hurting. bbby has them beat on household stuff, zales on jewelry, etc., etc.. brick and mortar is downsizing bitchez and the writing is on the walls for the malls.

Wed, 02/27/2013 - 20:29 | Link to Comment Cdad
Cdad's picture

I was reading some dude somewhere about two weeks ago...forget who now...who anticipates that 400 US malls will close in the next two years.  I'm sure it is a bullish sort of thing, and I'm equally sure a bunch of mall debt will be put to good old Bernanke...but you know...just sayin'.

Thu, 02/28/2013 - 02:07 | Link to Comment Common_Cents22
Common_Cents22's picture

mall of america will make a nice indoor veggie garden

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