Jc Penney

2410 WordsSep 10, 201310 Pages
JCPenney EQUITY RESEARCH By: Hui An, Luo Zhang, Estefani Martinez, Feng Xiong, Xi Yang, Wei Liu Prepared for ACC 645, Dr. Kaustav Sen JCPenney EQUITY RESEARCH By: Hui An, Luo Zhang, Estefani Martinez, Feng Xiong, Xi Yang, Wei Liu Prepared for ACC 645, Dr. Kaustav Sen Pace University ACCT 645 Pace University ACCT 645 Company Selected JCPenney Company, Inc., a public traded company that has its common stocks traded on NYSE market under the ticker symbol “JCP”. Overview of Retail Industry & Department Stores The retail industry has always been a large portion of the U.S. economy. In 2012, the industry had nearly one million stores and accounted for four trillion dollars in revenue. An estimated two-thirds of the U.S. GDP…show more content…
Sephora makes large amount of money for JCPenney so that JCPenney is recommended to expand physical Sephora stores in the U.S and also all over the world. Despite of the declining popularity of in-shop stores, JCPenney can still invest more in online stores, enlarging this kind of retail channel. Threats: The threat of JCPenney is that growing counterfeit goods market may keep customers away from going to J. C. Penney. Plus, due to fast swift of fashion trends and also pricing pressure, JCPenney may lose its pace with the market. Finally, JCPenney still needs to deal with the weak financial projection for FY2012. Historical Analysis As one of the major retailers in the United States, JCPenney has 1,104 department stores in 49 states and Puerto Rico as of February 2, 2013. The key success of its business is tremendously depending on the sales performance. However, the retail business is highly competitive, with low barriers to entry and low profit margin. Due to large sales plunge in 2012, the company is in financial trouble. The thorough analysis of JCPenney’s financial statements is vital to judge the future performance of its business. Table 2 Past Net Sales and Net Income 2008-2012 ($ in millions) Year | 2012 | 2011 | 2010 | 2009 | 2008 | Net Sales | $12,985 | $17,260 | $17,759 | $17,556 | $18,486 | Change from last year | -24.77% | -2.81% | +1.16% | -5.03% | | Net Income | $(985) | $(152) |
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