Boston, MA 03/04/2014 (wallstreetpr) – J.C. Penney Company, Inc. (NYSE:JCP) has announced that it will no longer be issuing its monthly sales data. However, the company stated that it will make updates available to investors from time to time. That JCP is abandoning monthly sales reporting is not strange. Many of its peers in the retail business are not in that practice anyway.
However, as J.C. Penney Company, Inc. (NYSE:JCP) declared that monthly sales reports will no longer be coming out, or at least, are not very necessary now, the question that begs the answer is why did it introduce the practice in the first place and why is it folding it now. That question has been answered.
Why JCP is abandoning monthly report
J.C. Penney Company, Inc. (NYSE:JCP) is convinced that given the progress that it has already made in its turnaround efforts, monthly sales update are not necessary. The company introduced monthly sales reporting to ensure that investors remained updated on every progress, or at least step, that it was making towards its turnaround. That was very important to win over and maintain investor confidence. In any case, it is a common practice for turnaround companies that aim to maintain transparency with their investors.
But now that J.C. Penney Company, Inc. (NYSE:JCP) has proven that it is on the right track – going by its recent performance reports – the company has, or believes it has, won the investor confidence that it needs. Among the highlights in the company’s recent performance is that same-store sales have been growing. Same-store metrics are key performance metrics for most retailers – J.C. Penney Company, Inc. (NYSE:JCP) being no exception.
Reduced exposure
That J.C. Penney Company, Inc. (NYSE:JCP) is abandoning monthly reports means that the company will be able to reduce its public exposure. Investors and the public will no longer have information to scrutinize the company in an ongoing frequent basis. Sometimes, if not most of the time, monthly reports pile a lot of pressure on the management, so much so that it may take its focus away from long-term goals to satisfy short-term interest. Perhaps this is something that CEO Mike Ullman might be trying to avoid.
