|Bid||0.5519 x 900|
|Ask||0.5540 x 2200|
|Day's Range||0.5460 - 0.5947|
|52 Week Range||0.5300 - 2.0500|
|Beta (3Y Monthly)||2.58|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 13, 2019 - Nov 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||0.86|
Skilled investors know to cut their losses before things get really bad. Hopefully J. C. Penney and Frontier Communications investors knew this golden rule.
Rating Action: Moody's affirms seven and downgrades two classes of GSMS 2014- GC18. Global Credit Research- 22 Aug 2019. Approximately $767 million of structured securities affected.
These department store stocks may have been beaten down enough to once again provide value to your portfolio with significant dividend yields hedging some of the risks of buying into a potentially dying sector.
The San Francisco tech retailer's latest funding round will accelerate new retail partnerships, infrastructure expansion, and marketplace growth.
Online resale clothing store thredUP has received $175 million in funding which will be used in part to expand its partnerships with retailers, bringing thredUP’s total capital raised to more than $300 million, Reuters reported. Last week, Cincinnati-based Macy's (NYSE: M) announced it was piloting a partnership with San Francisco-based Thredup in 40 of its stores across the country. "We know many consumers are passionate about sustainable fashion and shopping resale," Macy's CEO Jeff Gennette said during a second-quarter earnings call Aug. 14.
(Bloomberg Opinion) -- Who knew the unsexy work of disciplined inventory and expense management could get Wall Street this excited?Or, at least that’s what I think is driving a Thursday morning surge in shares of Nordstrom Inc., which reported second-quarter earnings late Wednesday. The retailer beat analysts’ earnings per share estimates, an outcome it chalked up to deft expense control. But, to my mind, practically everything else about this report is worrisome for Nordstrom, and indicates that something has seriously gone off track recently for this company.Nordstrom said net sales fell 5.1% from a year earlier in the quarter. The company no longer reports comparable sales, a measure that typically captures sales at stores open more than a year and online sales, and is considered a key benchmark of retailer health. It said when it announced that decision that net sales in fiscal 2019 would effectively approximate comparable sales. So, if we assume that to be true, Nordstrom effectively just had its worst results in at least decade on this metric. The first quarter was the second-worst.It’s not like one of its major lines of business provided reason to dismiss troubles at the other. Net sales plunged 6.5% in the full-price division, an especially bad result when you consider Nordstrom held a major promotional event in the quarter, its Anniversary Sale, which is traditionally an important driver of annual revenue. TJX Cos. managed to deliver positive comparable sales in the second quarter in its division that includes off-price wunderkinds Marshalls and T.J. Maxx, and yet Nordstrom Rack, a direct competitor, saw net sales fall 1.9% from a year earlier.Adding to the gloom, Nordstrom’s e-commerce sales rose just 4% in the second quarter. I realize that the company has a relatively mature online business for a legacy brick-and-mortar retailer, drawing 30% of its overall sales from e-commerce. However, this is a significant downshift from the rate of growth the company had been recording in this channel. The bleak news doesn’t stop there: Nordstrom reduced the top end of its annual earnings guidance. Also, its previous outlook for net sales was a range of flat to a 2% decline; it is now just for an approximately 2% decrease. Achieving even this dimmer outlook will require a pretty speedy change in momentum from the first half of the year, and I’m not sure executives have adequately explained how they can turn on a dime and pull that off. All of this is what leaves me perplexed as to why this report would do anything but make investors squeamish about Nordstrom’s prospects. I’ve long thought of Nordstrom as something of a unique retailing species. While it is technically a department-store operator, I’ve resisted thinking of it as such, because it has largely avoided all the typical problems we associate with that troubled format. But earnings results like these are making me reconsider whether it is really different enough to withstand the relentless pressure facing the category.These numbers make it harder to ignore stumbles by this company that might once easily have been overlooked. In the first quarter, Nordstrom erred with a change to its loyalty program that it believes kept shoppers away from its stores. In the second quarter, sales at its Anniversary Sale were soft, which co-President Erik Nordstrom told investors was in part because “We simply ran-out of our top items.” These missteps don’t exactly show the company to be in top form. I don’t think Nordstrom’s situation is hopeless. With less than 140 full-price stores, I’ve noted many times that Nordstrom is fortunate to not have a bloated store portfolio – unlike Macy’s Inc., J.C. Penney Co. and Kohl’s Corp. Its locations don’t tend to be in the dumpy malls that are turning into shopping ghost towns, and I see promise in its tiny-format Nordstrom Local concept. But its results so far this year suggest these factors might not be sufficient protection from the curse that is being a department store in 2019.To contact the author of this story: Sarah Halzack at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Amazon and its ecommerce wave have swallowed up 10s of thousands of brick-and-mortar stores in the retail apocalypse. Retailers everywhere are scrambling to find their niche with the shifting consumer.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Recession fears may be mounting in certain parts of the U.S. economy, but Walmart Inc. and Target Corp. are signaling that the all-important American consumer is doing just fine.The big-box discount retailers both beat sales expectations for the second quarter and raised their profit guidance for the full year, shrugging off concerns about tariffs, encroachment from Amazon.com Inc. and dispiriting results from retail peers like Macy’s Inc., J.C. Penney Co. and Kohl’s Corp. Paired with bullish comments on the U.S. housing market this week from Home Depot Inc. and Lowe’s Corp., the outlook heading into the critical holiday period looks brighter.“The consumer economy continues to motor along nicely,” said Neil Saunders, an analyst at Global DataRetail. “Home improvement is an early indicator of economic distress and from Home Depot’s numbers, there was no sign that the consumer is in a tailspin. Target and Walmart, both bellwethers for mainstream America, point to the same conclusion.”Standing OutWalmart, Target and Home Depot -- along with a few other recent star performers like Costco Wholesale Corp. and Best Buy Co., who report in the coming weeks -- have stood out by nailing the fundamentals of retail: price, assortment and convenience. Their products are affordable, with enough new stuff to keep people coming back, along with plenty of online buying options that appeal to busy shoppers. Plus their size and clout give them a leg up in negotiating tariff impacts with suppliers that smaller rivals don’t have.Take Target, which is remodeling 300 stores this year and has introduced about two dozen private and exclusive brands in key categories like apparel, home decor and booze. Or Walmart, which has figured out curbside fulfillment of grocery orders and will start offering in-home deliveries directly to shoppers’ fridges this fall. Those offers make them unique in the sea of sameness that has let Amazon and digital upstarts grab market share from other retailers in recent years.Target shares surged as much as 19% to a record high after reporting results Wednesday. Lowe’s rose as much as 13%, the biggest intraday jump since 2008.Target debt also rallied and credit protection costs fell as bond investors grew more optimistic about the company’s financial strength. The cost to protect Target debt in the credit default swaps market for five years declined as much as 4.9 basis points to 26.5 basis points, the biggest drop since 2016, according to data provider CMA.Stable ConsumerA recent survey of shoppers from analysts at Stifel confirms the appeal of Target and its discount brethren. More than eight out of 10 shoppers polled in late July said they plan to shop at Walmart in the next month, up from 71% who said the same two years ago. Target enjoyed a similar rate of increase in so-called shopping intention. More than one-quarter of consumers said they plan to spend more on discretionary items -- stuff they want but don’t necessarily need -- in the coming months, well above the 16% average over the past seven years.“Our data suggests the U.S. consumer remains strong,” Stifel’s Mark Astrachan said in a note. Household spending accounts for about two-thirds of the economy.Retail-industry leaders echoed that sentiment. “We see a very stable and healthy consumer environment,” Target Chief Executive Officer Brian Cornell said on a call with reporters after the earnings release. Lowe’s CEO Marvin Ellison said Wednesday that the home-improvement retailer’s gains in the quarter reflected “a solid macroeconomic backdrop,” while Walmart’s finance chief Brett Biggs said last week that American consumers were in “relatively good shape.”U.S. retail sales rose 0.7% in July, the most in four months, according to the Commerce Department. The result topped all estimates in a Bloomberg survey of economists.Department-Store DoomStill, some retailers are floundering. Traditional department-store chains like Macy’s and J.C. Penney turned in a dour set of results, and the next round of tariffs on Chinese goods -- poised to hit nearly all apparel -- could send them reeling even more. A levy on department-store staples like handbags already went into effect, with the vast majority of other products slated for hikes later this year, even after a partial reprieve.Target said that reprieve on the latest round of tariffs will delay their impact to the first quarter of 2020.“This is largely a 2020 issue,” Cornell said on a call with analysts Wednesday.It’s not just tariffs: Unfavorable weather in the early spring kept shoppers from buying summer swimsuits and outdoor gear, pummeling performance for the stores that rely on those seasonal products. To goose sales, both Macy’s and J.C. Penney have inked deals with online consignment outlet thredUP, which reflects the weak demand for the fashions currently on their racks. Shoppers have already gone elsewhere, particularly younger ones.The bottom line is that consumers are still spending, but they’re getting more choosy and cautious, which is why even discounter TJX Cos. posted a rare stumble after failing to freshen up the assortment at its HomeGoods chain, forcing it to discount items. The miss at what’s traditionally an earnings standout showed how little margin for error there is in today’s unforgiving retail world.(Adds bond performance in seventh paragraph and July U.S. retail sales in 11th.)\--With assistance from Cécile Daurat.To contact the reporter on this story: Matthew Boyle in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Macy's and J.C. Penney are struggling right now, but both management teams seem confident that they can turn things around soon.
JCPenney news for Tuesday includes JCP stock jumping after a large purchase of shares.Source: Supannee_Hickman / Shutterstock.com JCPenney (NYSE:JCP) released a filing with the U.S. Securities and Exchange Commission notifying it about the change in ownership of JCP shares. The buyer of the shares is company Chairman Ronald Tysoe.Tysoe bought a total of 1 million shares of JCP stock. He did this on Aug. 16. The shares were bought in multiple transactions that valued them between 55.7 cents and 62.2 cents. The average price for the shares was 59 cents each. That means he paid roughly $590,000 for the shares of JCP stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe JCPenney news about Tysoe buying up shares of its stock comes after JCP hit a low of 55 cents on Aug. 16. This low price is likely one of the reasons that the Chairman grabbed extra shares of the stock.So why exactly was JCP stock so low on Aug. 16? That's one day after the company released its earnings report for the second quarter of 2019. Mixed results for the quarter weren't a positive for the stock. * 10 Undervalued Stocks With Breakout Potential More recent JCPenney news includes a deal that will have it selling used clothing at select stores. This comes from a partnership with thredUP. The company is hoping that this new offering will allow it to attract more eco-friendly customers to its stores.JCP stock was up 7% as of noon Tuesday, but is down 48% since the start of the year. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy As of this writing, William White did not hold a position in any of the aforementioned securities.The post JCPenney News: JCP Stock Pops on Insider Buying appeared first on InvestorPlace.
The ratings on six principal and interest (P&I) classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 6.8% of the current pooled balance, compared to 6.0% at Moody's last review. Moody's base expected loss plus realized losses is now 6.6% of the original pooled balance, compared to 5.9% at the last review.
Tysoe bought shares of the department store on the open market for the first time in years. He bought J.C. Penney stock near the record low of 53 cents.
What's Next for Walmart Stock and a Target earnings preview on the latest episode of the Full-Court Finance podcast from Zacks Investment Research.
The principal methodology used in these ratings was "Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS" published in July 2017. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.