Financial Statement Analysis
Basically, these ratios tell a lot about the two companies. It takes half a second to realize that Kohl's is the better investment, since JCP is losing money in heroic fashion. JC Penney not only lost a lot of money last year, but has lost money for the past three years. Its revenues are down substantially in that time, with a collapse in 2013. A quick Google search tells all about the massive marketing missteps that have crippled JC Penney. The stock price is low, but that is because this is not a growth story.
The current ratio highlights the liquidity of the company, and both are well above the 1.0 threshold normally considered a sign of trouble. While Kohl's earns a better profit margin, both companies have a health gross margin. The issue over at Penney is that its net margin is a staggering loss. To put it in perspective, in 2012 Penney saw its revenues decline by over $4 billion, but only cut its selling, general and administrative expense by $500 million. That SGA expense is still higher than the company's entire gross profit. JC Penney is a much smaller company by revenue than it was a few years ago, and will be hard pressed to make that adjustment quickly.
Both firms have...
JC Penney's In the retailing industry, it is challenging an organization to break down all its previous designs, advertising plans, and store environments to make a new beginning. Nonetheless, that is precisely what JC Penney did, and has done several times. Founded over 100 years ago, this organization has seen changes and redesigns with each new CEO. Recently, JC Penney, otherwise called JCP, has begun a fresh again with a new
JC Penney's New Pricing Strategy J.C. Penney was founded in 1902 by James Cash Penney, and by 1907 he had purchased full interest in three locations, moving his company headquarters from Wyoming to Salt Lake City in 1909. By 1912, there were 34 stores in the Rocky Mountain State areas. By 1928 Penny's had opened 1000 stores and by 1941 had 1600 stores in all 48 states. Penny's began national advertising
JC Penney: J.C. Penney Company, Inc. is a holding firm with the main operating subsidiary known as J.C Corporation, Inc. The company sells accessories, family apparel and footwear, beauty products, home furnishings, and fine and fashion jewelry in its department stores in America and Puerto Rico. Since its inception, this company has grown to become a major retailer that operates approximately 1,106 department stores by the beginning of 2011. The business
Pricing JC Penney is a major department store, doing billions of dollars in revenue per year. The industry, however, is mature and some would say stale. Younger consumers in particular are not attracted to the department store shopping experience, instead choosing anything but. JC Penney tapped former Apple executive Ron Johnson as its new CEO, and made big changes to its merchandising and especially to its pricing. One pricing strategy that
JC Penny Makeover Background on U.S. Department Stores and Background on J.C. Penney Dr. Robert Tamilia (Marketing professor at the University of Quebec at Montreal) explains that the department store in America not only "…revolutionized the retail store," and the shopping experience, and the available of products and promotional techniques, the department store contributed in a major way to the evolution of "...hiring practices and inventory control procedures" (Tamilia, 2002, p. 3).
J.C. Penney News Is Bigger Than Lawsuit Decisions, Revenue Losses, and Resignations - Mark Cuban's Stock Purchase Is Better Than Money for J.C. Penney's Recovery (JCP, MSO) Organizational context: J.C. Penney J.C. Penney is one of the most famous and renowned of the major U.S. department stores. It is well-known for its image of Americana and its reasonable prices. However, within this particular market segment, J.C. Penney is facing increasingly stiff competition
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