3 Earnings Reports That Caught My Attention Last Week: Akorn, Inc. (AKRX), Clean Energy Fuels Corp. (CLNE)

J.C. Penney
I believe it bears repeating that this just might be the worst quarter in retail history. What J.C. Penney brought to the table was absolutely awful: a 28.4% decline in sales, a 31.7% same-stores sales decline, and a nearly 35% drop in Internet sales. Who has trouble increasing direct-to-consumer sales these days anyway?

The question also bears repeating: Is Penney’s now too far gone to be saved? The company recently brought back its beloved sales, and CEO Ron Johnson has noted that it’ll do what it can to let the customer dictate how it rolls out new initiatives in the future. However, sales figures were horrid this past quarter, and cumulative losses of nearly $1 billion for the year have me questioning whether the company can even survive another year of this.

Part of this question will be answered shortly when we find out whether or not Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) broke its supposedly exclusive pact with Macy’s, Inc. (NYSE:M) by partnering with J.C. Penney in 2011. A big part of Penney’s turnaround plan revolves around setting up mini-shops within its stores, of which Martha Stewart could be the leading foot-traffic driver. According to my Foolish colleague Andrew Marder, Penney’s could have a good shot at winning this case, but even that may not be enough to get customers back into its stores.

Until you see decisive growth in its bottom-line figures, even if it means missing out on a rally from the bottom, it might be wise to keep your distance from Penney’s.

The article 3 Earnings Reports That Caught My Attention Last Week originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Motley Fool newsletter services have recommended buying shares of Clean Energy Fuels.

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