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JCPenney Reports Horrific Results, Stock Plunges
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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I agree but months ago I walked through ours with my wife. We used to buy something but I is now total shit - not a damn thing anyone wants to wear. I should be an analyst......
Read more: http://www.businessinsider.com/jc-penney-q4-2012-earnings-2013-2#ixzz2M89maH7u I was at the JCPenney Store in Roosevelt Field, Westbury, Long Island two weeks ago on a Tuesday afternoon. One customer on a checkout line, a few customers on the floor and lots of space between clothes racks. JCPenney used to send out broadsheet 4 page sales circulars with coupons on them, circulars which drew the customers in. Then Johnson came abpard as CEO and I started receiving 80 page coated paper magazines full of models wearing stuff that looked expensive. JCPenney is not Nordstrom's. I don't know what it is now, what with Johnson no longer selling Arizona jeans at the store. Johnson is giving Penney customers what they don't want and the Penney customers have deserted the store. Johnson's solution: equip sales associates with point of sale hand held devices so they ring up customer purchases on the floor, instead of the customers going to the usually empty checkout areas. Johnson's past innovations have tha effect of a neutron bomb on JCPenney: the physical store structure is there but the customers are gone. Really too bad, JCPenney used to be a really good department store.
Doesn't matter if JCP is not nordstroms... the consumer is DEAD.
Bottom end - Walmart - is DEAD
Middle upper end - JCP - is DEAD
Wasn't all this inevitable? Nobody has work - massive numbers on food stamps - the CONSUMER IS DEAD
"Warning! MBAs at work."
Anybody here from the Dallas area remember when JCPenney opened up their swanky new headquarters?
I guess clueless MBAs need to work somewhere.
I live almost across the street. RonJ's black Suburban picks him up around 4p. He is set.
The starbucks nearby is where the ex-employees congregate and bug everyone there with their resumes. :(
Years ago the WSJ had a story about moving the NYC buying staff of libs to Plano. Tthey flew them in and took them to HQ on buses to try to sell them. The people were horrified. A few realized they could actually own a house with a yard. JCP everntually moved them all there.
The stopped carrying cotton dress shirts. The dress shirts were awful. Idiots elected O in 2008 and he stole it in 2012 so it is game over for most of retail. People have stopped spending because they are trying to find money to eat.
Weeeeeeeeeeee!!!!!!!!!!!!!!!111111
But, But, But free haircuts were supposed to bring 'em in! The only haircut going on now is on their stock price...
Maybe Ben can add a few billion to the 40 B that is to be used to buy up homes nobody wants... and buy up the entire spring stock of JCP
Then JCP can do like GM and announce a STELLAR RESULT
I just dropped another 20k into gold. That's Gold.... Physical Gold... (shaken not stirred)
Ackman and Johnson have taken an unspectacular but cash strong retailer and destroyed it with their "we're smarter than the market" mentality. Thanks for fucking up an icon shit heads.
They should change the name to keep up with our monetary policy. How does "JC Trillion$" sound?
Wowzers! Down over 16% pre-market. Who was the guy last year that said JCP is a bug looking for a windshield? Great quote.
Found it - http://www.theburningplatform.com/?p=34521
"Everything right on schedule" - said the spider to the fly.
I hide behind my screen name to admit I "shop Walmart!".
2006 - local Super store jammed 24/7.
2013 no longer 24/7 - (9 AM I think). Aisles No more stars from the www.peopleofwalmart.com photo Web site (one of my favorite!). Too empty to even shop lift so sitting @ home with a can of beer, cold pizza and People magazine found in a dumpster. Life is great!
No more ER visits after being hit by one of the "double-wide ladies" who forced WM to widen their aisles years ago. Just refugees from Saks and the like of the local Rodeo Drive in every major city. Dressed like they are going to Saks 5th Avenue BUT darting around WM with scarf (or men's hat), dark glasses praying no friends see them (but you cannot avoid it - rumors travel fast re new WM shoppers - the wine tasting party invitations cease, friends even avoid your street). You know, you know, you know! ADMIT IT!!! you have the MARK OF THE BEAST ON YOU! The smell of Walmart! YELL IT! "I smell of Walmart!!" Now, don't you feel better!
Yesterday, mid-day shopping - TWO checkers working. 28 other checkouts showing cobwebs. I think the JCP folks skipped right over WM to head to Dollar General (parking lot full) BUT "99 Cents and Under" store going up across the highway. Rumor of "Penny a Pound" (new chain) store coming soon. Total trash for worthless currency = fair trade. Another Monster Box on the way to me today -- great feeling!
I know how to fix this.....
Step 1: Fire Ron Johnson
Step 2: Hire Ron Swanson
Step 3: Replace center of store Yoga classes with cooking classes for all breakfast foods.
Step 4: PROFIT!!