Why J.C. Penney Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of department store operator J.C. Penney (NYSE: JCP  ) climbed as much as 11% today on a few signs of improvement in August.

So what: Although the embattled retailer posted yet another brutal quarter -- a 22% sales plunge in the second quarter -- and even pulled its full-year guidance, confident words from CEO Ron Johnson that the restructuring remains on course is giving investors some hope. Johnson said the overhaul of its stores and a simplified pricing strategy have eased the decline in traffic in recent weeks, suggesting that the company's turnaround initiatives are at least starting to gain traction.

Now what: Although the company said it no longer expects to meet its prior profit forecast for fiscal 2012, Johnson said J.C. Penney remains well-positioned for next year. "While business continues to be softer than anticipated, we are confident the transformation of J.C. Penney is on track," said Johnson in a statement. "Our rock solid balance sheet will support the execution of our transformation and position us for growth beginning in 2013." Of course, when you couple J.C. Penney's clearly worrisome sales trends with the recent resurgence of close rival Macy's, I wouldn't exactly bet on it.

Interested in more info on J.C. Penney? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1980710, ~/Articles/ArticleHandler.aspx, 10/26/2016 9:38:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 22 minutes ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:02 PM
JCP $8.41 Up +0.04 +0.48%
J.C. Penney CAPS Rating: *