In an effort to stabilize its financials, replenish inventory
and fund the overhauling costs related to its new home
departments across 500 stores,
J. C. Penney Company Inc
) drew $850 million from its $1.85 billion revolving credit
This comes within a week of Ron Johnson's removal from the
position of the CEO, as his ambitious transformational ideas
failed to materialize and former CEO, Myron E. (Mike) Ullman, III
was reinstated to the helm.
Ron Johnson, who was appointed as the CEO with high
expectations, was discharged from his position after serving for
17 months. Within this span, Johnson announced a string of
strategic measures to bring the company back on its growth
trajectory. Back then, the company's COO Mike Kramer had
announced plans to fund the entire transformation activities
through its cash from operations.
On the other hand, J. C. Penney's restructuring initiatives
have been crumbling as the company is exhibiting no signs of
improvement. Alongside, it is constantly lagging its peers,
) in terms of performance.
If we look at the earnings surprise history, J. C. Penney has
missed the Zacks Consensus Estimate for 5 straight quarters with
an average negative surprise of approximately 447.8%.
During the last reported quarter, the company posted an
adjusted quarterly loss of $1.95 per share compared with earnings
of 21 cents in the year-ago quarter. The Zacks Consensus Estimate
for the quarter was of a loss of 19 cents.
Shares of J.C. Penney currently maintain a Zacks Rank #3
PENNEY (JC) INC (JCP): Free Stock Analysis
KOHLS CORP (KSS): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
To read this article on Zacks.com click here.