Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

J.C. Penney Company, Inc. (JCP)’s Troubles May Continue For Some Time

After engaging an attempt to reinvent itself and failing in it in 2012, J.C. Penney Company, Inc. (NYSE:JCP) has been desperately trying to carry out a turnaround. It has not been an easy task. The company is a national department store chain which has failed to differentiate itself from other companies –in brand names and vendor relationships- and has been thus suffering the consequences. The highly competitive retail industry in which it operates is leaving less and less room for mistakes. As a consequence, the firm has seen its financial position deteriorating rapidly.

J.C. Penney Company, Inc. (NYSE:JCP)

Management has only been able to cast a shadow on the company’s future by helplessly trying to recreate the past. The impossibility of accomplishing that is clear, and has been left out in the open by the decisions Bill Ackman and Steven Roth have recently made.

Last Agust, Pershing Square Capital Management LP’s, Bill Ackman, decided to sell –for almost half the price he had paid— all of his 39.1 million shares. Eventough it was a rather controversial purchase, Ackman gave a good try to bring new life into J.C. Penney Company, Inc. (NYSE:JCP). For three years he embarked himself upon the mission to revive the retailer. He even recruited a new CEO to make stores more attractive to shoppers and upgrade its merchandise. The sale of his stake and a 25% drop in sales last year, were only the beginning of throwbacks for the company.

Last Friday, Vornado Chairman and CEO, Steven Roth resigned to his place in the board of the department store. He announced at an investor conference that he plans to sell his 13.4 million shares, having already sold almost half his stake earlier this year. He had acquired a 9.9% stake in the company at the same time Bill Ackman bought his, hoping to gear the changes that would reinvent J.C. Penney Company, Inc. (NYSE:JCP) and make it appealing to younger shoppers.

The outline on J.C. Penney Company, Inc. (NYSE:JCP)’s future remains undefined –to say the least. Customers, as well as long-term investors, will be hard to win back for the company. A real turnaround might possible, but still remains far away in the distance.

Disclosure: Pamela Gaviño holds no position in any stocks mentioned

Recommended Reading:

Kohl’s Corporation (KSS), Macy’s, Inc. (M): J.C. Penney Company, Inc. (JCP) Is Turning Itself Around, but Stiff Headwinds Exist

J.C. Penney Company, Inc. (JCP) Takes Another Hit: Will it Keep on Ticking?

J.C. Penney Company, Inc. (JCP) Facing Legal Battle

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.