Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, May 18, 2012

Article Excerpt

J.C. PENNEY CO. INC., $26.29, New York symbol JCP, fell 23% this week after the company reported much-worse-than-expected quarterly earnings. It also suspended its $0.20-a-share quarterly dividend to conserve cash. Penney operates more than 1,100 department stores in the U.S. and Puerto Rico. It also sells goods over the Internet. The company recently began a major restructuring that includes shifting to an everyday pricing strategy. The company feels that predictable prices will spur customers to visit more often instead of waiting for items to go on sale. Penney is also remodelling its stores to feature more in-store boutiques devoted to single brands, such as its Sephora beauty and fragrance shops. As well, the company is investing in new computer systems and simplifying its purchasing. Penney’s sales fell 20.1% in the three months ended April 28, 2012, to $3.2 billion from $3.9 billion a year earlier. Same-store sales fell 18.9%. Online sales fell 27.9%. As part of the shift away from discounting items, the company recently…