US J.C. Penney believes to be on a better road
After the turmoil at the top of retailer J.C. Penney, and because of a dramatic change in strategy the retailer reports a loss for the fiscal third quarter ending November 2, 2013 of USD 489 million (USD -123 million). Same stores reported the ninth straight loss
On the other Hand, returned CEO Myron Ullman stated “an encouraging start into the fourth quarter”. Upon this message Penney’s shares rose around seven percent under the aspect that Penney’s business has finally stabilised and is taking the worst-case scenario away that the company is needing to raise more cash early next year to stay in business.
It is also obvious that it is insufficient merely stabilising the business, with same store sales about 30 % below where they were two years ago. Some financial experts predict that the company will be continuing to lose money through 2015 and that Penney will return to profit only in 2017, with a discount to reflect the risks it still has to face.