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 | 3283351 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 | 3283356 Kitler
Kitler's picture

Things must be getting worse.

People are becoming JCPenney-pinchers.

Wed, 02/27/2013 - 18:21 | 3283443 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 | 3283452 MoneyThangs
MoneyThangs's picture

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

Wed, 02/27/2013 - 18:51 | 3283550 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 | 3283765 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 | 3283842 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 | 3283869 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 | 3283923 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 | 3283957 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 | 3284751 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 | 3283951 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 | 3284020 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 | 3284818 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 | 3285141 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 | 3285161 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 | 3283553 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 | 3283704 Karl von Bahnhof
Karl von Bahnhof's picture

2 sp
You colleague +10

Wed, 02/27/2013 - 19:53 | 3283761 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 | 3285263 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 | 3283881 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 | 3284335 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 | 3283361 Temporalist
Temporalist's picture

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

Wed, 02/27/2013 - 18:01 | 3283376 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 | 3283442 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 | 3283848 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 | 3285148 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 | 3285275 Disenchanted
Thu, 02/28/2013 - 00:28 | 3284566 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 | 3283377 Doubleguns
Doubleguns's picture

New name. Just a Penny!!!

Wed, 02/27/2013 - 21:26 | 3284054 CheapBastard
CheapBastard's picture

Temporalist,

JCPennys is not GM.

Wed, 02/27/2013 - 19:28 | 3283693 daxtonbrown
daxtonbrown's picture

Who could have seen this one coming?

Wed, 02/27/2013 - 18:05 | 3283352 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 | 3283401 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 | 3283475 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 | 3283407 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 | 3283536 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 | 3283631 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 | 3283716 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 | 3283879 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 | 3283979 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 | 3283411 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 | 3283424 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 | 3283445 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 | 3283358 trollin4sukrz
trollin4sukrz's picture

Purdy much over for bricknmoarter in this fvkedup retail climate.

Wed, 02/27/2013 - 18:11 | 3283409 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 | 3283359 SmallerGovNow2
SmallerGovNow2's picture

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

Wed, 02/27/2013 - 17:59 | 3283366 Temporalist
Temporalist's picture

Yea it made me think it was Friday.

Wed, 02/27/2013 - 17:59 | 3283360 AldoHux_IV
AldoHux_IV's picture

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

Wed, 02/27/2013 - 18:35 | 3283492 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...

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