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JCPenney's Free Cash (Non) Flow

Tyler Durden's picture




 

Ackman is in, so is Soros. Which means that the "top left to bottom right" trendline will reverse.... Soon.... Any minute now....

In the meantime, the company has burned $1.7 billion in the past three years, and rising fast.

For those curious about working capital, see if you can spot the odd one inventory build quarter out:

And as an added bonus, here are revenues:

 

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Thu, 05/16/2013 - 16:59 | 3570763 Stoploss
Stoploss's picture

LOL!!

Thu, 05/16/2013 - 17:20 | 3570824 MFLTucson
MFLTucson's picture

This is 70% of your economy and these freaks working at the Fudgepacking Reesrve think we are stupid enough to bielieve that QE is ending this summer.  Sure Big Ben!

Thu, 05/16/2013 - 17:31 | 3570856 seek
seek's picture

Technically they could end QE this summer. But it'd be the equivalent of pulling the pin of a nuclear hand grenade and dropping it at your own feet.

I keep wondering if one day soon they will actually do that.

Thu, 05/16/2013 - 17:46 | 3570876 prains
prains's picture

no

they'll pull the pin and roll under someone elses feet, so when it goes off they have their patsy to blame

Thu, 05/16/2013 - 20:05 | 3571194 kchrisc
kchrisc's picture

WOPR: "Berstank, would you like to play a game?"

         hujel

Fri, 05/17/2013 - 01:21 | 3571934 HardAssets
HardAssets's picture

The Big Banks 'too big to fail' are bankrupt. It they pull the plug, that will become obvious immediately.

So theyll never pull the plug.

But someday the rest of the world will.

Thu, 05/16/2013 - 19:11 | 3571079 tarsubil
tarsubil's picture

The nuclear hand grenade has no pin. It has a count down clock which is hidden, impossible to stop, and is constantly accelerating but you can add time to it. The Fed is proposing to stop adding time to the clock. It might not make a difference either fucking way.

Thu, 05/16/2013 - 18:31 | 3570987 CrashingDollars
CrashingDollars's picture

When does the laughter stop and the pain start?

Thu, 05/16/2013 - 18:39 | 3571005 prains
prains's picture

you're already feeling it but it's death by a thousand cuts

Fri, 05/17/2013 - 04:41 | 3572098 Roger Knights
Roger Knights's picture

Here's a negative article on JCP, just up on Seeking Alpha. It mentions that JCP's sales events have cut into profitability, but when it avoids sales it loses revenue.

Post Earnings J.C. Penney: The Good And The Very Ugly

Thu, 05/16/2013 - 16:59 | 3570764 _ConanTheLibert...
_ConanTheLibertarian_'s picture

in 3...2...1

Thu, 05/16/2013 - 17:05 | 3570776 jumbo maverick
jumbo maverick's picture

I just stopped in a few days ago. Bought a fondu pot and some turtlenecks. What's all the fuss about?

Thu, 05/16/2013 - 17:09 | 3570794 McMolotov
McMolotov's picture

You must have the same kind of Penney's we have around here, the kind that hasn't had a makeover since Carter was in the White House.

Thu, 05/16/2013 - 17:44 | 3570883 prains
prains's picture

c'mon man i like sweater vests and khaki's, how else can a guy get it on at applebee's

Thu, 05/16/2013 - 22:09 | 3571485 Freddie
Freddie's picture

Most K-Mart's have not had a makeover since Herbert Hoover.

Thu, 05/16/2013 - 17:05 | 3570779 maskone909
maskone909's picture

im going to start a new drinking game called --Watch CNBC and Drink to APPLE, GOOGLE, JCPENNY, TESLA, and GOLD SUCKS.

going to get hammered 30 minutes into it i promise

Thu, 05/16/2013 - 17:06 | 3570783 McMolotov
McMolotov's picture

Anyone know how Kohl's is doing? I get one of those $10 cards at least once a month, and I know they're expecting me to buy a $30 shirt or something, but I always keep it under $10, so they end up giving me free shit.

Thu, 05/16/2013 - 17:19 | 3570819 buzzsaw99
buzzsaw99's picture

the last time i was in there it was packed. i bought some stuff because it was better and cheaper than anywhere else.

Thu, 05/16/2013 - 17:45 | 3570887 prains
Thu, 05/16/2013 - 18:02 | 3570915 pursueliberty
pursueliberty's picture

I got a 3 pack of undershirts for a buck with one of those.  Everytime I've been with the wife it is pretty well packed.  I went to JCP recently because I needed a dress shirt of a particular color for a wedding I was in.  It was cheaper than walmart by a couple dollars and there were around 20 people shopping.

Thu, 05/16/2013 - 18:06 | 3570924 orez65
orez65's picture

Make sure that you log on to Kohls wi fi.

I got an instant 20% discount on top of the sale price.

Thu, 05/16/2013 - 17:07 | 3570790 css1971
css1971's picture

Retail.

Only makes money at Christmas... 7 month wait.

Thu, 05/16/2013 - 17:08 | 3570792 maskone909
maskone909's picture

and then came the internet

Thu, 05/16/2013 - 17:19 | 3570820 css1971
css1971's picture

More specifically Amazon.

Who apparently aren't expected to make your money back before we've emigrated to the stars, in the next 4000 years.

Thu, 05/16/2013 - 17:19 | 3570821 dobermangang
dobermangang's picture

Death spiral.  Rapidly approaching ground.

Thu, 05/16/2013 - 17:22 | 3570828 Son of Loki
Son of Loki's picture

(Reuters) - J.C. Penney Co Inc on Tuesday said that same-store sales in the first quarter of the fiscal year fell 16.6 percent, a deeper than expected slide in business.

 

Ooops, they're not supposed to say those words....only stuff like "everything is great, improving, wunderbar....."

 

 

http://finance.yahoo.com/news/j-c-penney-says-first-quarter-same-store-2...

Thu, 05/16/2013 - 17:28 | 3570845 dobermangang
dobermangang's picture

Nah.  A new CEO throws out all the bad stuff he can find.  So then the next QTR looks semi good in comparison.  The problem is did he find all of RJ's screw ups?  JCP is an epic disaster.  Worst debacle since new Coke.

Thu, 05/16/2013 - 19:23 | 3571105 daveO
daveO's picture

Coke didn't intentionally alienate one of their main customers, Christians with families. This was suicidal. Coke changed back quickly. I don't see JCP 'coming out' and saying they suddenly agree with Christians and are sorry for trying to ram queers down their customers' throats. That 'welcome back' commercial really sucked, almost condescending. The board of directors are ignorant jackasses.

Thu, 05/16/2013 - 22:15 | 3571501 Freddie
Freddie's picture

Maybe Soros and Ackman can offer shoppers free bagels.

Oprah alienated a lot of dumb white women who watched her and like sheep voted for the Muslim.  Seems like many had buyer's remorse shortly after that idiocy and took it out on fat Oprah.  Vile Pig.  She is trying to get those women back.

JC Penny screwed the pooch.  Oddly, American Express also used Ellen but it was a bit lower key.  They called me and I told them to stick their card up ellen's vag.

Fri, 05/17/2013 - 01:08 | 3571918 Suisse
Suisse's picture

Doesn't one of these retailers occassionally do free haircuts for children? I guess that's sort of like free bagels. 

Thu, 05/16/2013 - 17:24 | 3570833 Eastwood
Eastwood's picture

Source your data por favore!

Thu, 05/16/2013 - 17:24 | 3570835 rlouis
rlouis's picture

I would expect some covenant violations announced anyday now.

Thu, 05/16/2013 - 18:00 | 3570911 prains
prains's picture

thou shall not steal?

Thu, 05/16/2013 - 17:26 | 3570843 Lore
Lore's picture

Re: "Ackman is in, so is Soros."

They talk the talk. Do they walk the walk? 

Full Metal Jacket

 

Thu, 05/16/2013 - 17:50 | 3570890 adr
adr's picture

I think the problem is men don't shop anymore. Just take a look at the department stoes now, even Target, Kohl's, etc.

The men's departments have shrunk to almost nothing. 80% of Kohl's is women's stuff. The thing is if you look at the labor demographics, men are still making the money. What do the women have to shop with? Can't buy designer clothes with EBT yet.

I think buyers caught on that most men have some knowledge of the costs of things and won't spend $80 on a $5 shirt. Women haven't caught on yet, or lack the ability to comprehend that a $400 Coach purse is made in the same factory as a $25 Target Mossimo.

Which is also why Craftsman dropped the lifetime trade in guarantee and started building crap tools. Guys would use a wrench for 30 years instead of buying a new one every year. If the wrench ever did break, Sears would replace a unit they could have sold when Kennedy was in the White house. A few years ago I brought in my Grandfather's drill that finaly stopped working and walked out with a $200 drill that was in the same series.

The only thing better than selling one item, is pulling in a sucker that will buy the same item year after year.

Thu, 05/16/2013 - 18:42 | 3571015 SqueekyFromm
SqueekyFromm's picture

My father says the same thing, that there is less money to be made building quality stuff that lasts. How obscene. Meanwhile, I am still using a SunBeam mixer that belonged to my grandmother and has a metal body on it. Plus, I have an Electrolux cannister vacuum that belonged to her that rolls around on the floor and is great for getting under furniture with. My last stupid boyfriend wanted to make a lamp out of it.  Sooo, I just made a lamp out of him instead. Come to think of it, he always did get turned on with with a switch. . .hmmmm.

Squeeky Fromm, Girl Reporter

Thu, 05/16/2013 - 22:14 | 3571499 greyghost
greyghost's picture

well said ADR.....back in the late eighties my two girls were coming of age and of course clothes was the top thing. around this time one of the expensive tennis shoe company's sent their manufacturing to vietnam. instead of having to pay a living wage to the workers in oregon, they instead paid their workers in vietnam .25cents a day. at first i thought it was .25 cents an hour but no it was .25 cents a day. never have bought their shoes...never will. had my girls read that article and asked them what they thought.....they never asked to buy those shoes again. right now i buy SAS shoes made in the usa. expensive, however they last and are very very comfortable.

Thu, 05/16/2013 - 19:30 | 3571118 daveO
daveO's picture

Sears sold quality when the FED wasn't handing out so many fake dollars. Back then, Sears Cards were the only credit many folks could get. This made people think about what they were buying. They knew they couldn't go down to China Mart and put another one on one of their 12 credit cards. You can thank the FED for this attrocity. It's also whats fueling the queer marriage movement. No one understands the value of anything these days, except for 'Gold Bugs'. 

Thu, 05/16/2013 - 18:04 | 3570918 Spectre
Spectre's picture

Chances are that in the next few weeks I will be shorting this dead horse.  So, stay tuned.  

Thu, 05/16/2013 - 18:17 | 3570947 EARLPEARL
EARLPEARL's picture

sounds like great plan SHORT A STOCK THAT SOROS IS LONG anyone know anyone to do that and it work out??

Fri, 05/17/2013 - 01:01 | 3571888 Lore
Lore's picture

Anyone who can provide documented proof with third party verification of their ability to keep pace with a black box neatly situated within spitting distance of a major exchange will be a hero, because it will mean there is still some semblance of a market. Until then, anyone without a predisposition to Self Harm will continue to take their dwindling and debased capital elsewhere. Eventually, all that will be left is Machines competing for Bandwidth, and real things will be valued some other place, in some other way. And there will be much wailing and gnashing of teeth among central bankers, who will never see themselves as having something to do with it.

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