Tue, Mar 3, 2015, 2:25 PM EST - U.S. Markets close in 1 hr 35 mins

Recent

% | $
Quotes you view appear here for quick access.

J. C. Penney Company, Inc. Message Board

  • afoolandhismoneyshallsoonpart afoolandhismoneyshallsoonpart Apr 22, 2013 11:48 AM Flag

    Macy's Stock Could Be Poised for a Pullback

    For many reasons but one that jumps out...

    "J.C. Penney reboot
    Macy's also faces some more specific threats. The most important one is the ongoing transition back to a heavily promotional model at struggling competitor J.C. Penney (NYSE: JCP ) . J.C. Penney's elimination of most coupons and discounts last year led to the loss of more than $4 billion in sales. Macy's management has stated on several occasions that about half of its stores are in malls that also have a J.C. Penney, and that those stores have performed better than the company average. This trend provided a tailwind for Macy's earnings -- and Macy's stock -- throughout 2012.

    J.C. Penney is expected to make a strong push to win those customers back this year, starting with the return of "high-low" pricing. This could begin to reverse the trend of J.C. Penney shoppers migrating to Macy's, putting pressure on the latter's revenue growth. If, as I expect, J.C. Penney really ramps up the use of discounts and coupons, this could put pressure on competitors' gross margins. A drop in gross margin could have an even bigger impact on Macy's earnings than a slowdown in revenue growth."

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
JCP
7.91+0.06(+0.76%)2:25 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.