6 Ridiculously Ugly Facts About JCP Stock

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jcp jcpenney stockWhen it comes to punchline department store JCPenney (JCP), it’s no secret that now-fired CEO Ron Johnson didn’t just fail miserably at a JCP turnaround, but that he made things far worse.

The latest proof: The department store just booted the updated JCP logo that debuted under Johnson, reverting back to a classic look in an attempt to appeal to turncoat customers.

All it takes is a quick glance at JCPenney stock performance to remember just why JCP is grasping for straws and focusing on such minute details. JCP stock has lost three-quarters of its value during the past five years, with nearly 70% of that depreciation coming in the past 12 months alone.

The trouble with those ugly numbers and the endless cycle of JCP news, though, is that updates reeking of desperation have more or less become the norm.

Heck, optimistic headlines like “JCP Sees Improving Sales” were circling earlier this week — and JCPenney stock made some meager gains — thanks to a small sequential improvement in JCP same-store sales (though the metric still was negative).

But it’s no wonder, considering investors and more casual followers of JCPenney stock have sat through the Johnson implosion, the Bill Ackman saga that followed, a spur-of-the-moment secondary offering and more. All of us, it seems, have almost built up a tolerance for just how bad things are at JCP.

With that in mind, here are six ridiculous JCP facts to put the department store’s downfall in perspective:

  1. JCP has lost $16.2 billion from its market cap since its 2007 peak. That’s more than the entire market cap of rival Macy’s (M), more than twice the market cap of rival Sears Holdings (SHLD), more than the cost of hosting the 2012 London Olympics and nearly three times the JPMorgan (JPM) London Whale losses.
  2. JCPenney has posted a year-over-year decline in annual sales in six of the past 10 years.
  3. The year-over-year decline for 2012 JCP sales was $4.3 billion. Not only did that translate to a 25% year-over-year slide for JCP sales, but it was greater than the combined total dollar amount for all declines in the past decade. Oh, and it’s also more than teen retailers American Eagle (AEO) and Aeropostale (ARO) each sold overall last year.
  4. Things aren’t looking much better for JCP in 2013. For the full year, JCP is on track for another $1 billion decline in sales — the second-largest annual dollar-amount decline for JCPenney in its history.
  5. This year’s loss is also on pace to be 75% larger than last year’s — an ugly $6.08 per share. The absolute value of that loss will be greater than the absolute value of JCP earnings it its last three years of profitability … combined.
  6. Finally, the absolute value of JCP’s operating loss for the first half of 2013 was more than its operating income for all of 2010 — the last year JCP posted positive results for that metric.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2013/10/jcp-6-ridiculous-facts-jcpenney-stock/.

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