Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 1, 2013

Article Excerpt

J.C. PENNEY CO. INC., $17.69, New York symbol JCP, fell 21% this week after it reported lower-than-expected sales and earnings. The company operates more than 1,100 department stores in the U.S. and Puerto Rico. Over a year ago, Penney switched to an everyday low prices strategy. It felt the move would entice shoppers to come into its stores more often and not wait for clearance sales. However, the plan alienated Penney’s regular customers. In its 2013 fiscal year, which ended February 2, 2013, Penney’s sales fell 24.8%, to $13.0 billion from $17.3 billion in fiscal 2012. That missed the consensus estimate of $13.3 billion. Same-store sales declined 25.2%. The company’s losses ballooned to $4.49 a share in fiscal 2013 from $0.70 in 2012. Even if you disregard inventory writedowns and other unusual items, Penney lost $3.49 a share. That’s much worse than the consensus forecast of a $2.10-a-share loss. Penney hopes to draw shoppers back to its stores with regular sales, particularly around…