J.C. Penney Company, Inc. (JCP), Macy’s, Inc. (M): Pulling Off The Miracle on Main Street

Kohl’s Corporation (NYSE:KSS) also benefited from J.C. Penney Company, Inc. (NYSE:JCP)’s shortcomings. Kohl’s gross margin improved 10 bp to 39.1%, certainly better than that J.C. Penney historical margin, but its operating margin contracted 40 bp and SG&A expenses increased. Kohl’s EPS increased 4% and its same store sales increased by 0.9%, seriously improving from a 2.7% year-over-year decline.

Both Kohl’s Corporation (NYSE:KSS) and Macy’s, Inc. (NYSE:M) offer dividends above 2%, while J.C. Penney Company, Inc. (NYSE:JCP) had to eliminate its dividend in 2012. While Kohl’s has a price to sales of .57 indicating it’s undervalued and a forward P/E of 10.87, the stock has been flat to negative over the last year.

Holiday-make or break: the final take
Ullman said J.C. Penney Company, Inc. (NYSE:JCP) plans to make a big push for Black Friday and Cyber Monday, having streamlined their online- brick and mortar cross channel sales. This will be the make or break period for the company.

Both Kohl’s Corporation (NYSE:KSS) and Macy’s, Inc. (NYSE:M) will give J.C. Penney Company, Inc. (NYSE:JCP) a run for the money over the holidays, but the company just might pull off a holiday miracle with its old strategies of sales, coupons, and private brands in a refreshed environment. The core customer never really wanted to leave J.C. Penney, and a holiday reunion might just warm the cockles of investor’s hearts.

The article Pulling Off The Miracle on Main Street originally appeared on Fool.com and is written by AnnaLisa Kraft.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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