Cramer Gets Tough on J.C. Penney (JCP), Says Stronger Effort Needed
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Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Should J.C. Penney (NYSE: JCP) pull out more stops, sacrificing near-term shareholder sentiment for longer-term value? Jim Cramer thinks so.
On Thursday's Mad Money, Cramer started comparing J.C. Penney to Chicos FAS (NYSE: CHS). When Chicos did its turnaround nearly two years ago, the company didn't care what Wall Street thought. It cut estimates dramatically and took a more hands-on approach, Cramer said.
Unlike J.C. Penney, Chicos raised prices to re-attract its core older customer base, shunning younger shoppers in the process. Despite the unlikely move, Chicos recently reported a 21 percent increase in revs with comps up 9.6 percent.
In getting back to profitability now, Chicos sacrificed much a few years ago. Did anyone think raising prices in the wake of a large economic downturn and subsequent recovery would work? Well, Chicos management did...because they understood their customer base and shopping preferences.
Cramer concluded his rant by saying J.C. Penney should stop pussyfooting around the issue and make more tough cuts in order to complete a turnaround effort in arguable one of the hardest industries to attempt one in.
Shares of J.C. Penney are indicated for a higher open.
On Thursday's Mad Money, Cramer started comparing J.C. Penney to Chicos FAS (NYSE: CHS). When Chicos did its turnaround nearly two years ago, the company didn't care what Wall Street thought. It cut estimates dramatically and took a more hands-on approach, Cramer said.
Unlike J.C. Penney, Chicos raised prices to re-attract its core older customer base, shunning younger shoppers in the process. Despite the unlikely move, Chicos recently reported a 21 percent increase in revs with comps up 9.6 percent.
In getting back to profitability now, Chicos sacrificed much a few years ago. Did anyone think raising prices in the wake of a large economic downturn and subsequent recovery would work? Well, Chicos management did...because they understood their customer base and shopping preferences.
Cramer concluded his rant by saying J.C. Penney should stop pussyfooting around the issue and make more tough cuts in order to complete a turnaround effort in arguable one of the hardest industries to attempt one in.
Shares of J.C. Penney are indicated for a higher open.
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