Too Much, Too Fast at JCPenney (JCP)? Ackman Thinks So...
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Too much too fast at JCPenney (NYSE: JCP)?
Speaking at a Thomson Reuters investment conference Friday, hedge fund giant Bill Ackman took a jab a JCPenney (NYSE: JCP) and the man he hand-picked for the CEO role, Ron Johnson. Ackman said that "criticism is deserved" on Johnson, who has been on the job a little over one year.
Generally, Ackman is a cheerleader for JCPenney, taking a positive stance while others have been critical. Over the last year, Johnson has implemented several changes, including pricing and elimination of coupons, which resulted in "too much change too quickly," Ackman said.
Ackman's Pershing Square is the largest shareholder of JCPenney and Ackman sits on the board. With JCPenney dropping over 60 percent in the last year, Pershing Square is currently faced with about $500 million in paper losses.
Ackman is firm and thoughtful however, saying that, "If you get a retailer fixed and you can replicate it, it's about the best way to make money." Funnily enough, prior to recent events, Ackman's stance has largely been "when," not "if."
Shares of JCPenney are up over 4 percent Friday.
Speaking at a Thomson Reuters investment conference Friday, hedge fund giant Bill Ackman took a jab a JCPenney (NYSE: JCP) and the man he hand-picked for the CEO role, Ron Johnson. Ackman said that "criticism is deserved" on Johnson, who has been on the job a little over one year.
Generally, Ackman is a cheerleader for JCPenney, taking a positive stance while others have been critical. Over the last year, Johnson has implemented several changes, including pricing and elimination of coupons, which resulted in "too much change too quickly," Ackman said.
Ackman's Pershing Square is the largest shareholder of JCPenney and Ackman sits on the board. With JCPenney dropping over 60 percent in the last year, Pershing Square is currently faced with about $500 million in paper losses.
Ackman is firm and thoughtful however, saying that, "If you get a retailer fixed and you can replicate it, it's about the best way to make money." Funnily enough, prior to recent events, Ackman's stance has largely been "when," not "if."
Shares of JCPenney are up over 4 percent Friday.
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