J.C. Penney Stock Sinks Below $5 Despite Sales Gain

On Feb. 4, J.C. Penney’s stock sunk below $5, a multidecade low for the department store chain.

At press time, it was trading at $5.08.

The stock woes come as the embattled retailer reported its first good sales news in more than two years, as November and December comps rose 3.1 percent. Same-store sales rose 2 percent for the fourth quarter of 2013.

CEO Myron “Mike” Ullman said in a statement that the “steady improvements…show that the company’s turnaround is on track,” noting the jumps came in spite of harsh weather and a tough retail environment.

But Wall Street analysts found little to get excited about, considering that Penney had recorded 20 percent sales drops the prior year.

“J.C. Penney needs the improvement to be much better,” said analysts from Sterne Agee, as quoted by CNBC. “It is becoming increasingly critical that the company starts to see meaningful improvement if it is to survive.”

 

 

JCK News Director