How is jcp doing financially
After another year or two, neither of these methods will be possible any longer, and the company's liquidity is going to start declining again if profitability hasn't returned.
Penney is still losing hundreds of millions of dollars per year at that time, bankruptcy begins to look increasingly likely. Betting on a J. While Kohl's has had some issues with declining sales and profits over the past few years, the company is still extremely profitable, and share buybacks are driving per-share earnings higher.
During the holiday quarter, Kohl's managed to grow same-store sales by 3. Penney's 4. That showing comes even as J. Penney grew its sales from a depressed base, and it shows that J. Penney is going to have a difficult time winning market share from its competitors. Kohl's stock has run up a bit recently, but the stock is still reasonably priced. Kohl's is a far less risky investment than J. Penney, which is running out of time to return to profitability. The company's steps to preserve liquidity have worked so far, but J.
Penney will be in serious trouble if vast improvements in profitability aren't realized in the next couple of years. There's no short-term risk of bankruptcy, but the clock is ticking. Timothy Green has no position in any stocks mentioned. Company Profiles.
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