Benzinga  1 hr ago  Comment 
CNBC Fast Money's Pete Najarian said on the show that Autodesk (NASDAQ: ADSK) got oversold last week. He likes the stock and he thinks that it is going higher. Autodesk gained 2.15 percent and it closed at $53.79 on Monday. Jim Lebenthal is a...
SeekingAlpha  3 hrs ago  Comment 
By Elephant Analytics: Although J.C. Penney (NYSE:JCP) delivered a solid earnings report in Q2 2014 (with particularly strong improvement in gross margin), there are several items that have made me more confident in the idea that J.C. Penney has...
TheStreet.com  8 hrs ago  Comment 
Editor's Note: This article was originally published at 10 a.m. on Real Money on Aug. 15. Sign up for a free trial of Real Money. I am fighting the urge to pack it in for the week, foregoing my usual Friday store walks and careful note-taking....
TheStreet.com  8 hrs ago  Comment 
NEW YORK (TheStreet) --aJ.C. Penneya continued to rise Monday after the department store chain's second-quarter earningsabeat analysts' expectations. The company reported a loss of 75 cents a share, narrower than the consensus estimate of 93...
SeekingAlpha  Aug 17  Comment 
By Bret Jensen: Most short targets are usually those focused on companies have just overshot rational valuations by traditional metrics such as price earnings ratios. Amazon (NASDAQ:AMZN) fits nicely into this category. Then we have companies...
SeekingAlpha  Aug 16  Comment 
By Daniel Jones: Even after rising 4% for the day, shares of J.C. Penney Company (NYSE:JCP) shot up over 10% after the market closed on Aug. 14 in response to better-than-expected revenue and earnings before declining around 3% on Aug. 15. While...
DailyFinance  Aug 16  Comment 
Filed under: Company News, JC Penney, Earnings, Retail, Investing Patrick T. Fallon/Bloomberg/Getty Images The market is happy with J.C. Penney (JCP) -- for now. Shares of the department store operator initially moved higher after posting better...
Benzinga  Aug 15  Comment 
J.C. Penney's (NYSE: JCP) Chief Financial Officer Ed Record hosted the company's second quarter conference call. CEO Mike Ullman is recovering from a surgical procedure and was unable to take part in the call. The Quarter In Review During...
MarketWatch  Aug 15  Comment 
J.C. Penney bond rises rise sharply and the cost of insuring against default drops.
SeekingAlpha  Aug 15  Comment 
By ValueWalk: By Michelle Jones J.C. Penney Company Inc. (NYSE:JCP) released its latest earnings report last night, surprising Wall Street with losses that weren't as bad as expected. Analysts at Sterne Agee say the department...


J.C. Penney (NYSE: JCP) is a leading department store retailer of apparel, accessories and home furnishings. They produce their own private brands in addition to selling products from other companies.

The company has faced changing consumer tastes in the past years--consumer traffic is being drawn to Wal-Mart (WMT) and Target (TGT) at the expense of department stores such as J.C. Penney and Macy's Inc. (M). In addition, J.C. Penney relies heavily on private labels[1] Although private label products--in order to appeal to as many customers as possible--are not unique enough to compel fashion-conscious consumers to purchase them, they are still a viable option for customers who do not follow trends. JCP also faces lower profit margins in the due to rising commodity costs which will increase its clothing costs.

Business Overview

The company divides its merchandise into several categories which include: men's, women's and children's apparel, accessories and cosmetics; home furnishings; leisure and recreational equipment; jewelry and watches.[2]

Business Growth

Trends and Forces

Private Brands Not Unique Enough to Differentiate from Cheaper Alternatives

Private label brands are produced exclusively for a particular store. For example, J.C. Penney has a number of private label brands including Arizona Jeans Co. and Stafford.[3] Retailers such as Macy's and J.C. Penney find private labels very attractive because the pieces often have higher margins than branded merchandise from other companies. However, the economic crisis of 2008-2009 has made people more reluctant to spend. When consumers have less money to spend, they will be more inclined to spend it on something that excites them. Private label brands, in an effort to appeal to as many consumers as possible, are less likely to spur a person to buy them when disposable income is already scarce.[4] Also, the proliferation of discount retailers such as Wal-Mart, Target and Kohl's (some with their own exclusive brands) means that consumers can trade down to another store if they can no longer afford prices at J.C. Penney. Private label merchandise, by its nature, is not differentiated enough to keep fashion-conscious consumers purchasing them in lieu of lower-priced alternatives.

Cheers pal. I do aprpceitae the writing.


J.C. Penney's main competition is mid-tier department stores such as Macy's Inc. (M) and Kohl's (KSS).

  • Macy's Inc. (M) has a higher price point than J.C. Penney and sells more exclusive brands. Although both companies produce private labels, they make less of a contribution to Macy's total sales than they do J.C. Penney. [5] [6]
  • Kohl's (KSS) is slightly smaller than J.C. Penney, both in terms of sales and locations Kohl's also operates at a slightly lower price point. Kohl's position as a discount retailer makes it more attractive for recession-stricken consumers who are looking to save money. Although it has fewer locations than J.C. Penney the fact the company sells its goods online means it is not at a large disadvantage to the larger retailer in terms of accessibility.[7]


  • On July 27, 2011 marketing chief Mike Boylson retired after 32 years working with JCP and 8 years serving in his former position. This will be first time Ron Johnson, who was appointed chief executive of JCP in November 2010, makes a senior-level appointment.[8]


  1. JC Penny 2009 10-k p.22
  2. JCP 2008 Annual Report pg. 2  
  3. JCP 2008 Annual Report pg. 2  
  4. Alexandria Sage. ANALYSIS - Private label eclipsed by brands in US retail slump.
  5. M 2009 Annual Report  
  6. JC Penny 2009 10-k p.22
  7. Discount Retailers Thriving in Recession.
  8. [1]
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