Kohl’s Corporation (KSS), J.C. Penney Company, Inc. (JCP): Media Criticism Targets Retailers

J.C. Penney Company, Inc. (NYSE:JCP)’s only good news recently came when a judge ended a preliminary injunction, allowing the store to sell products from Martha Stewart Living Omnimedia, Inc. (NYSE:MSO). The partial ruling is in a case brought by Macy’s, Inc. (NYSE:M), which claims it holds rights to certain products under Stewart’s name.

J.C. Penney Company, Inc. (NYSE:JCP)’s grand re-opening included a house-warming event with the Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) products, among others. All properties for Martha Stewart are in decline and sales were down by $12.6 million for the quarter. This effort seems like a step in the right direction to revamp both brands.

Company culture and stock prices

The takeaway from the lawsuits and media criticism against Kohl’s Corporation (NYSE:KSS) and J.C. Penney Company, Inc. (NYSE:JCP) points to company culture. A culture of deception and major policy overhaul should signal danger to shareholders. Presently, analysts are already wary of suggesting investment in most retail stocks and I’d steer clear of these two for the foreseeable future.

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