The love affair between Ackman and Johnson is going to cost long holders even more money
It would seem that Johnson is begining to modify if not scrap his original strtaegy. Probably a good thing if you are long the stock. TV ads are in fact looking better since he threw the spokes person Ellen G under the bus. The bring back of promotion even on a fairly conservative basis is net good. I think it is too late for a major turnaround for the shares though. The genius of Johnson seems to overlokkl the billions of market cap that already has been buried and it is not coming back soon. Going forward you say ? Tough road . A lot of money has been spent and no real benefits accrued at this point.The question really is have they really improved their brand and can they make enough money to become a survivor ? That is the real question.My opinion is even though Ron is no doubt a genius because Ackman keeps repeating this along with a lot of other nonsense. The facts are the customr base is just not very interested so far in this costly and uneven execution of the new store within a store concept.
I believe the default on the bonds may not be perfected at this point but that may only be a timing issue.
The 6 Billion dollar man has burned up more money that even Ackman's gross misrepresentations of HLF can cover. This may end up putting even more pressure on JCP to expedite a strategy to buy even more sales. The cost to depromotionalize the business was not worth it but what will be the cost to deliver a solid profit now ?