Why Macy's Looks So Much Better Than J.C. Penney ( JCP ) just reported fiscal 1Q18 results that failed to offer much hope to shareholders who have been itching to recoup at least some of their losses. Outside the P&L, Macy's fundamentals also look more robust. I wrote this article myself, and it expresses my own opinions. To report a factual error in this article, click here Live Chat + Live Chat - We apologize for the inconvenience.
Revenue, including credit card income, grew 9% to $3.56 billion. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Penney May.18.18 | About: Macy's Inc. (M) D.M. Comps seem stuck in the mud and margins continue to unwind. The company has been doing a much better job at producing FCF, a trend that I expect to continue for as long as its comps and margins remain superior.
It recently hired former basketball player Shaquille O’Neal to hawk its bigger sizes in commercials and plans to launch a fashion brand under O’Neal’s name. New rental car business at Dulles offers Audi, and only Audi. Meanwhile, J.C. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness.
To see the chat, try to refresh in about 5-10 minutes. Stores on the Gulf Coast and in the Southeast were the best-performing in the fleet of 860 stores. Penney’s weak results come a day after rival Macy’s reported a strong first quarter as it increased its store label brands. Debra Lee stepping down as head of BET. Jewelry, Sephora beauty products and salon items sold well during the quarter ending in early May.
It looks like Macy's North Star program is working, while J.C. Macy's seems to have found a better sales cadence, having decisively recovered from earlier 2017 levels. Penney's debt load, measured as a percentage of total assets, making the stock a bit less exposed to the fat-tail risk of insolvency. Follow D.M. Please upgrade your browser or use a different browser, such as Google Chrome. Penney shares 350 malls with Sears, and Penney is aggressively going after Sears customers, he said.
Penney slashed guidance for the year, and now expects adjusted EPS to range from a 7-cent loss to a 13-cent gain, down from previous guidance for a profit of 5 cents to 25 cents per share. Volume delayed. Penney's turnaround efforts are producing mixed results at best. Meanwhile, J.C. Source: DM Martins Research, using data from companies' reports and YCharts All of the above is not to say that investing in M today is without significant risks.
It previously forecast a potential profit range of 5 cents to 25 cents per share. Copyright © 2018 by WTOP. Get these newsletters delivered to your inbox & more info about our products & services. Investor's Business Daily, Inc. If I had to pick between M and JCP and make an equity investment today, I believe I would have a clear winner in mind. Penney has struggled to find its footing, blaming the cool weather for a rough start to 2018 that did not seem to have impacted its Cincinnati-based competitor.
M EV to EBITDA (Forward) data by YCharts Company/Ticker Forward P/E LT EPS Growth Forward PEG Macy's - M 8.8x 3.0% 2.9x J.C. Add a comment . Walmart said Thursday that its first-quarter sales increased 2.1 percent. In this Wednesday, May 16, 2018, photo, the JC Penney logo is seen hanging outside the Manhattan mall in New York. Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.
To my awe and dismay, that very month marked a five-year bottom in the stock price, and shares have risen nearly 70% between then and now. Sifting through the press release and earnings call , I don't see evidence of the pricing pressures that I believe were largely to blame for J.C. Penney - JCP 26.7x -2.0% Neg. Disagree with this article? Dillard's also posted a 2 percent comparable sales increase and a higher profit.
Copyright © 2018 The Associated Press. Following Macy's ( M ) celebrated beat-and-raise quarter in the prior session, department stores results Thursday have been a mixed bag, with J.C. Stocks rose for the week as President Trump hailed and then doubted China trade talks. Credit: Huffington Post On the other end of the spectrum, key peer J.C. Penney's very sharp YOY increase in COGS as a percentage of revenues in 1Q18.