J.C. Penney Company, Inc. (JCP) News Trends: Mike Ullman, Bill Ackman’s Letter, 2Q Results & More

Editor’s Note: J.C. Penney Company, Inc. (NYSE:JCP)

J.C.Penney: Ullman’s Team Is A Reason For Optimism (Forbes)
J.C. Penney Company, Inc. (NYSE:JCP)’s second quarter of 2013 is one everyone would like to forget. Sales were down 11.9% to $2.66 Billion, gross margin were down to 29.6 % and the company incurred a net loss of $586 million or $2.66 per share. While CEO Mike Ullman presided over the company in the quarter, it was really the previous failed administration under Ron Johnson that must take the blame for losing more share of market and incur heavy losses. While the third quarter can be looked upon as a transitional quarter – with sales improving month by month and earnings edging towards a breakeven point – I am convinced that the fourth quarter can be very positive with strong sales increases and good earnings that could erase the losses in the third quarter.

PERSHING SQUAREHedge fund manager Ackman shares his thoughts about Penney with his investors (Dallas Morning News)
In a letter to investors, J.C. Penney Company, Inc. (NYSE:JCP)’s largest shareholder Bill Ackman, admitted that his investment in the Plano-based retailer was a “failure,” the Associated Press reported. Ackman admitted that retail wasn’t his hedge fund’s “strong suit” and didn’t indicate when Pershing Square Capital Management might sell its 17.7 percent stake in Penney. Ackman resigned from Penney’s board on Aug. 13 and has an agreement with the company about when and how he can sell his shares.

Silver lining for Penney’s (TriValley Central)
The worst may be over at J.C. Penney Company, Inc. (NYSE:JCP). The beleaguered department store chain on Tuesday reported its sixth straight quarter of big losses and steep revenue drops as it continued to face challenges related to a botched turnaround plan spearheaded by its ousted CEO Ron Johnson. But investors sent Penney shares up 6 percent to more than $14 — after having pushed the stock down nearly 70 percent in the last 18 months — in an expression of confidence that returning CEO Mike Ullman has started to stabilize the business.

JCP’s mixed picture (CNBC)

JC Penney falls following lackluster 2Q results (CNBC.com)
J.C. Penney Company, Inc. (NYSE:JCP)’s stock declined Wednesday, giving back some of the gains it made a day earlier when its earnings report gave investors some hope the struggling department store operator may have turned the corner despite big losses. On Tuesday, the Plano, Texas, company reported a second-quarter loss of $2.66 per share on revenue of $2.66 billion. Analysts polled by FactSet predicted a loss of a $1.07 per share on revenue of $2.77 billion.