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JCP Burns Through $3 Billion In 2013: All The Earnings Charts That Matter
Moments ago JCP announced results for Q3 which were atrocious, with Q3 earnings of -$1.81 coming in worse than already numerously lowered expectations of -$1.74. Comp store sales declined 4.8% with total revenues of $2.779 billion in the quarter, even as margins continued contracting, and dipped to 29.5%. The margin chart below says it all: Q3 margins have followed the following path: 2011- 37.4%, 2012 - 32.%5; 2013 - 29.5%... one can figure out what comes next. But most notably, in Q3 the company once again ignited its cash burn afterburners, with total free cash flow of $898 million, bringing the total cash burn for 2013 to a whopping $3 billion! Luckily for the company, in 2013 it has been able to fund all of this cash burn through a combination of cash and stock, amounting to $3.2 billion YTD. At October 31, the company had $1.2 billion in total cash which should allow it to enter 2014 without filing for bankruptcy, although with a total debt load of $5.6 billion compared to $3 billion a year ago, only very foolish people can possibly see how this story has anything but a very unhappy ending.
And with yet another horrible quarter in the books, and the company still hemmorhaging cash, we enter the make or break Q4, where revenues jump as margin crater, but cash flows are expected to increase. Because if JCP can't generate positive FCF in the holiday quarter, it's pretty much game over.
Free Cash Flow:
Revenues - Q4 will clearly be the liquidation make or break quarter.
Margins - liquidation comes at a price: if the margin is too low there will be no FCF. Can the company pull it off?
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Who??
Who went a little overboard on the BK party favors?
and the stock is up large this morn percentage wise....go team...
JCP is an acronym for Just Close Penny's.
Just Cheap Products? or
Just Crazy Promotions? (Ellen Degenerate)
The Plunge Protection Tean has so much printed money their just throwing it everywhere.
The Fed needs to continue their recklessness further and pay states bills directly with printed cash.
What would a dead cat be, if it didn't bounce? Gold to the moon.
Long Forgotten History
They continue to act and sound like KMart in their death throes. Each new CEO liquidates the previous CEO's "bright idea" at a significant loss and then talks up their own book.
waiting to see jcp inventory at BIG LOTS...only a matter of time.
or a merger with the GAP
JCP is an anchor tenant in many USA malls. Shuttering them will put big pressure on CMBS.
http://articles.chicagotribune.com/2013-03-08/news/sns-rt-markets-creditl1n0c07d7-20130308_1_cmbs-mall-anchor-jc-penney
I cannot even remember the last time I stepped into a mall.
ejmoosa Don't go near malls, and I don't buy anything from China if I can avoid it. That is how you kill the beast.........don"t feed it.
At this point, I buy Chinese. Then, I buy gold with the savings. Until a dollar collapse, people here aren't going give a hoot about our current $500 Billion/yr trade deficit.
And Sears on the other end! Roller Rinks?
Ahh yes...free market in action once again. Hey! Ya know what? If I had that much worthless fiat I'd burn through it as quick as possible too. But, wait? That was not cash on hand but credit right?
Kind of reminds me of certain principles. A bit OT but, not really. IT recruiter calls me out of the blue today. Asks me to come work for him for X$. I say my rate is Y$. He says he cannot do Y$. I wished him luck in his search for that "perfect" skill set.
Basic law of supply/demand. If you want it, better price it right bitchez.
"Basic law of supply/demand. If you want it, better price it right bitchez." - works well for a local eCONomy, not so much for a global one...
I have always wondered what the aliens will be giving the earth in exchange for all the products (and the resources to make those products) in the future. Please there are no "laws" of eCONomics, it's a CON, period.
It also has to do with wants verses needs. A cadillac is a want. A car that runs is a need. cloths are secondary, peeps don't even dress up for church anymore.
That's also why shitty companies like Aco hardaware sells shit hardware and many food products. Maybe JCP should start selling grocercies.
Seems to be working for Family Dollar and Dollar General.
It always sucks when they throw you out of the club.
Never was in the club. WOuld rather shit my pants and sit it in all day than be near that fucking club. except if they give away beer, but still.
Clubs for Everybody: You're either in one or being hit with one.
Will all inventory go to Sears?
I should short JCP, Sears And BEst buy, SUpervalu and gamestop.
THAT'S WHAT HAPPENS IF YOU PAY MORE THAN THE MINIMUM WAGE!!!!
TO SUCCEED IN AMERICA, ONE MUST:
1. PAY SLAVERY WAGES TO THE SLAVES
2. DON'T GO FOR "QUALITY PRODUCTS".... JUST GO FOR PRODUCTS WITH LABELS THAT SAY "KUALITY PRODUKTS"
3. ONCE YOU GO CHINESE, YOU DON'T... whatever.... DO EVERYTHING THE CHINESE WAY.
The stock is trading higher by 8%. LOL. JCP will be fine. They'll make a ton of money over the Christmas holiday and comps are now trending positive.
You must have missed the "sarcasm" button- only a fool would think that JCP is going to be "fine" after this report, but hey, keep making my March puts cheaper.....
Liberal Ron Johnson was to JCP what Obama is to the USA. Forward!
Yep, Johnson should qualify for numerous gubbermint jobs now.
Maybe they should have hired Ron Jeremy instead?
He could attract more gay dads perhaps?
stop. enuf politics fo sur.
ron johnson was an egotistical little snot out of LaJolla who loved, loved, loved Nordstroms and held his nose every time he had to slum it in Plano. I mean, what person from Edina, MN would ever ever live in Texas? From the first introduction with his his crocodile smile and chiclet teeth, perfect hair and insincere bullshit this company--JCP--was in trouble. He was a marketing genius. /sarc?
......And he had no idea of who the JCP customer was. $50.00 Bodum Coffee Presses in JCP. Gourmet Specialty stores can't even sell those overpriced contraptions that make crappy coffee.
....With no idea of how to drive traffic into the stores. Concept ads, no discounting = empty aisles and stacks of unsold merchandise.
Retail is truly a screwed up landscape for too many companies. JCP laid off tons of employees, starting last year. Now, they are showing up in various places, but Stage Stores in Houston is another one to watch for future shorting opportunities. Several key management positions have been filled there by former JCP ex-pats, and they are busy pushing out seasoned Stage employees. The new management has grand ideas about exploding the business, but they don't have a clue who their customer is, either. It would be amusing if not so sad.
yep, clueless about the jcp customer base and marketing. My favorite item was the $500 vacuum cleaner. That's more than most customers make in a month. possibly a year looking at those shopping clearance.
Now they're in the process of clearing out the marketin genius' home furnishing debacle. or marking down and getting rid of the tramp dresses for that little tart of yours to wear at prom that were retailing for $200. Are you fucking kidding me?
there is a book here about the ron johnson tenure or a grade B movie. people just wouldn't believe how he fucked this company all the while earning $54 million to do it.
People always have hope... until it's too late
Foolish people and shill advertisers pretending to be reporters.
http://money.msn.com/inside-the-ticker/default.aspx?videoid=12066360-cae5-4f57-93a9-c1e8576c87c2
I haven't been inside a JC. Penney store in decades. Surprised to find out they still exist. Do they still sell stuff from the 50s and 60s?
Fuk Yeah! Bullish
still looking good in plastic and well preserved
Radioshack and JCP will be gone by Memorial Day after their managment was shocked, just shocked, that their holiday sales were poor...
I agree that JCP will very likely be forced into a Chapt 11 filing by suppliers/credit community. Then, it will take about 10 seconds for a D.I.P. number to appear, and we are off to the races again.
Least productive stores close, virtually all leases and other contracts re-negotiated, and like magic they are good to go....for another few years, until they are right back in another corner. Or not, depending on how the latest and greatest management team leads the charge.
The sell some okay stuff by non-JCP brands, like Dockers or whatever
However, they also sell some expensive "trendy" stuff that nobody buys (via Ron Johnson), as well as some pretty low-quality JCP-brand stuff
They need to focus on that "okay stuff by non-JCP brands" part, dump the "trendy" stuff, and either improve the JCP brand stuff or dump that too
Shit, I should be their CEO...
Can some-one explain to me why they lost more money per share than expected last quarter and the stock got a 8% bounce today? Have we all taken our crazy pills?
yes.
i can't believe the spin on all tv and msn.com
numbers don't lie, however, and these were awful.
Even the Salvation Army knows better than to stand in front of JCPs...
best line of all. props.
So, where are all these JCP customers going? Folks still have to wear underwear, ammiright?