JCPenney is edging closer to trading for an actual ‘penny’
Okay, okay… they’re still trading for $2 per share, but that is pretty frickin’ crappy for a company that was once at the top of the retail game. However, the company hit a new all-time low after releasing earnings on Thursday, as the stock dropped 25% – below $2 per share. Stores are closing, sales are dropping, and the CEO is missing-in-action (actually they don’t have one). Getting a CEO is tops on JCPenney’s to-do list because companies need one of those.
See what Amazon is doing… JCPenney should do more of that. Oh wait, it actually may be too late to jump on that bandwagon. Companies like Walmart and Best Buy have poured money into digital operations, and their investments are paying dividends.
Here’s what they will do… the company will also be focusing on women’s and children’s apparel which were the company’s top-selling categories in the second quarter. JCPenney will follow the money and purchase inventory as-needed to follow sales trends. However, the situation is dire – look at the earnings of other retailers. If JCPenney can’t make money when the economy is set to ‘easy mode’ for retailers, what will it take?