I find it fascinating that J.C. Penney announced over a year ago that they would no longer report their monthly sales. They would only announce them quarterly. This was when their sales were plunging by 30% every month. That’s funny. They reported their November sales yesterday. It isn’t a quarter end. I guess you report sales monthly when they are positive and report them quarterly when they are negative.
The worthless MSM is dutifully reporting the dramatic turnaround storyline being peddled by the management of JC Penney as they get ever closer to their bankruptcy filing. Here is some basic math that my financial friends in the media have decided to ignore. Their comp store sales were up 10% in November versus last year. The media shills failed to mention that JC Penney was not open on Thanksgiving last year, but were open this year. One extra day of sales would account for at least 5% of the increase, and probably more.
Secondly, the MSM pundits have failed to acknowledge the previous two years, prior to this increase. It seems comp store sales fell 32% last November and 2% the year before. Let me put this in a little chart for you.
|Year||Nov Sales||% Change|
The MSM is crowing because JC Penny has achieved a sales level that is 26.7% below the level of 2010, and they have done this with a BRILLIANT NEW STRATEGY of slashing prices and offering coupons on the Chinese made crap they are selling. I wonder why Ullman, the new/old/new CEO, isn’t reporting his gross margin versus last November. It seems his little PR ploy isn’t working, as the stock is down 5% so far.
If you generate a positive sale versus the prior year by selling the items at a loss, you eventually go bankrupt. This announcement of November sales has the air of desperation. JC Penney is not recovering. They are headed for bankruptcy. I know it. You know it. Ullman knows it. The only fools who pretend not to know it are the MSM and the Wall Street shills who will tell you to buy the stock the day before the bankruptcy announcement.
J.C. Penney’s return to old holiday playbook pays off with 10% sales jump
By Andria Cheng
The return of old holiday playbook by J.C. Penney Co.’s Chief Executive Mike Ullman has paid off, at least in the first round of fight this holiday.
- Getty Images
The struggling retailer, which opened its doors early on Thanksgiving like its key rivals Macy’s Inc. and Kohl’s Corp. , reported a 10.1% jump of its November same-store sales from a year earlier, after its October sales returned to positive territory, up 0.9%, for the first time since December 2011. Thomson Reuters, which said it only had input from one analyst so far, said the November result topped the estimate of a 9% gain.
The company said its online sales continued to be strong, running “well ahead of” the pace last year and consistent with October’s trend.
“We are pleased with our performance over the Thanksgiving holiday weekend, particularly in light of the continued spending pressures on consumers,” said Ullman, adding the return of private labels including St. John’s Bay and Modern Bride also helped to drive demand.
With the solid first step to return its comparable sales numbers back into positive territory this quarter, Ullman still has a long way to go and has to prove that Penney isn’t sacrificing profits for sales, analysts said. The company’s sales gain also had an easy comparison with sales tumbling 32% in the year-earlier fourth quarter and a two-year stacked decline of 33.5%, Retail Metrics data showed.
Ullman has returned Penney to its traditional sales strategy of heavy discounting after his predecessor Ron Johnson’s attempts at pricing and merchandising changes cost the company last year. For its Black Friday sales, in addition to having doorbuster specials, Penney even discounted gift-card purchases, giving away a $25-off coupon with the purchase of a 4-pack of Penney gift cards totaling $100 or more. Its popular Sephora in-store boutiques also participated in the sales events, discounting some items at more than half-off.
Sterne Agee analyst Charles Grom on Monday noted the company has made “a good first step.”
On the merchandise front, Penney returned many of its private label items that also include Stafford clothing and Cooks kitchenware. In its home department, Penney has removed the Bodum kitchen gadget section, a deal struck under Johnson, and brought back many small appliances including blenders and pan sets. Luggage was brought back and towels were prominently featured. Long lines were observed inside the home section.
Mercedes Juarez, a life coach from Harlem, said on Thursday night she’s noticed a difference in the past two months, with the company having more brands and sizes and its sales staff more enthusiastic.
According to research firm InfoScout, which tracked more than 50,000 in-store shoppers’ spending on Black Friday, Penney, which typically garners an 11% share of department store sales, registered more than 13% Thursday and Friday. Its data showed that Penney has also narrowed its sales gap with Macy’s.