ugg trainers women A Tale of 2 Retailers Video
Okay. It’s Friday fairer place out of the markets in Europe profitably and number this morning three point nine billion dollars. Sales for the holiday quarter topped analysts’ estimates and Austria. JC Penney’s client a successful holiday season same store sales were up over 4%. Shares though are down because Penney’s profits. Flat everyone I’m Dan Cutler and New York here are some more. On JC Penney store Mike Sadler from Yahoo! finance on Friday so might it take a look at this in mean sales good obviously profits flat what happens. Discounting is within one word is really what happened JC Penney’s really returned. To its roots as a you know just kind of mid level run of the mill departments are very heavily promotional that’s what these CEO mr. Ullman has brought back to two JC Penney and he got some responses you mentioned store traffic was pretty good people are coming into the stores. And topple and spending was was relatively good to better than anticipated in the fourth quarter. But there really operating kind of at a breakeven level and they told investors for the remainder of the year that’s probably going to more or less be the case they’re gonna have flat cash flow. For 2015. So that as this one does have to things where you he’s sort of who. Not really identify but you’ve gone back to your roots like that is it gonna take a couple of quarters that for investors find bill to settle it doesn’t say okay this is the strategy this company is going with now. We’re going on two years installments returns so so clearly this is the company you have what was interesting actually though is that it JC Penney executives did try to. Blame Ron Johnson a formal apple executive who had. Really revamp the strategy. And sort of said that they had some self inflicted wounds from that period that we’re still hurting the company so they tried to still say hey look we’re we’re still in the process of recovering from that they have alienated a lot of customers is the idea. And they still have not won all that loyalty back. And so it’s still continues to be an issue of exactly how much does does the current management alone. The do the penny situation and really. How much of a growth future can be for this very old retailer the tough part of the business it’s okay be characterized as any kind of a turnaround are now. Well it’s a turnaround in the in the sense that pearl while it was not clear that JC Penney really had a financial future. People really did think that they might not be able to continue as a going business at least anything near the scale their that’s gone they’re basically able to pay the bills are able to do if they have to do. But it’s not it’s a matter of not. Having a whole lot of growth to expect if you look at some of their competitors Macy’s Kohl’s those stocks are up 50% in the last two years while JC Penney is down about percent. Wieger taught us on this competitors there was some good track in this past quarter at Wal Mart target Kohl’s of those lower and retailers as well is that whole sector malls than they can’t come back. I wouldn’t say it’s a matter of malls making a comeback I think the demise of malls was very much you know overplayed for a long time and it’s just been. You know that if they’re still very viable the parking cut still fill up. During the holidays it’s much more a matter of the economy the consumer economy has done better and it’s not because people decided to spend more there are three million more people working today that were a year ago. That goes into the stores obviously lower gasoline prices is part of the mix too but I just think in general you have a healthier tone. To the household. Economy and that’s been reflected in those kind of basic brought no retail. Adding one more factor this last before it’s ago might what about the the that the process than about. Wal Mart TJ Max raising its entry level and wages. They have to do so essentially what’s going on is this the way the economic cycle always works overtime the job market tightens as things get better. And companies have to pay. Their workers more it used to happen in a more one off way but now since it’s become such a spotlight a political issue the private sector saying okay we’re gonna set a floor. We are going to basically raise the that the wages across the board. And I do think it’s an acknowledgment that the that the economy’s doing better it certainly doesn’t hurt if these. Workers are going to have a little bit more money to spend themselves on some level it it’s more or less reflective of affirming town in the overall economy. Mike’s until it from Yahoo! fund has Mike thank you have written again thank you. You’re watching the big number I’m Dan York.
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