Boston, MA 02\/13\/2014 (wallstreetpr) –\u00a0J.C. Penney Company, Inc. (NYSE:JCP) <\/b>posted in a press release an increase of 2% on its comparable store sales something that shareholders should not be entirely moved with. This may be seen a good sign in the recovery of the chain store but one should look at the bigger picture, considering the company has been facing a list of challenges that may throw its ability to sustain itself in the long run into doubt. The recorded 2% increase in sales marks the first time that the company has recorded positive results in over two years.<\/p>\n
Liquidity problems<\/b><\/p>\n
Based on its current sales momentum, JCP may be engulfed in serious cash balances that may force it to bankruptcy. It is only in December that the company posted comparable store sales increase of 10%. This essentially means the 2% recorded in January was a decline. The ongoing drop in sales puts the company into massive trouble something that may arose liquidity concerns with the company<\/p>\n
J.C. Penney Company, Inc. (NYSE:JCP)\u00a0target was to finish the 2013 fiscal year with cash and investments plus credit levels worth $2 billion. This was achieved, but looking at the results carefully you will notice the company burnt up to $3 billion in cash through its first three quarters so as to reach that level.<\/p>\n
\u00a0What out to be done by JCP<\/b><\/p>\n
The only way out of the mess is to work out strategies that will see the company\u2019s sells rebound to levels that can sustain the company in the coming quarters. The best way would be to reduce on its costs while forecasting more on marketing to try and attract new customer base.<\/p>\n
Poor performance continues for the ailing\u00a0J.C. Penney Company, Inc. (NYSE:JCP) as it starts to trade below the $6 mark. Wednesday trading sessions saw the company stock drop by 0.50% to reach low levels of $5.96 a share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 02\/13\/2014 (wallstreetpr) –\u00a0J.C. Penney Company, Inc. (NYSE:JCP) posted in a press release an increase of 2% on its comparable store sales something that […]<\/p>\n","protected":false},"author":32,"featured_media":15300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1753,685],"stock_ticker":[],"class_list":["post-15299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-j-c-penney-company-inc-nysejcp","tag-nysejcp","entry"],"acf":[],"yoast_head":"\n