Tomahawk, WI 02/07/2014 (BasicsMedia) – It is strange to imagine that no matter what J.C. Penney Company Inc (NYSE:JCP) tries to do, nothing seems to work well for long. All the efforts that the company pouts in to change its current dire financial situation, which has gone on for close to three years, are not producing e sort of results that it needs. Investors believe that the company y is only good at burning their money, and not many are willing to increase their investments in JCP. When the company recently announced its fourth quarter 2013 financial results, it was evident that it had reported a 2 percent increase in earnings, although analysts consider this insignificant.
No matter what happens where J.C. Penney Company Inc (NYSE:JCP) is concerned, it cannot be faulted for lack of efforts. The company ahs put in a lot of work to see a reversal in its financial condition, and win back investors confidence that it lost when it started enduring these tough times. During the just-ended holiday season, JCP saw an increase in its sales between November and December 2013. What is disappointing, is the fact that the company has not reported the sort of trajectory where growth and improved performance in terms of sales is concerned. Such minor details and seemingly insignificant information are important to investors, who JCP cannot afford to ignore any more.
In terms of e-commerce, the company reported 26.3 percent growth between November and December 2013, which is another positive development and change, although not to the extent or level that was expected of J.C. Penney Company Inc (NYSE:JCP). The company has reached a stage where it does not need to make small steps of development and better financial reports. It is past that stage, and all it needs now are major changes in its business operations. It is good to notice a few things that the company is doing well. Some of these include positively solid increases in sales figures for sweaters, beauty products, dresses, outerwear, men’s clothing, boots, house wares, and luggage.
Although the company’s sales figures for November and December appeared to have witnessed an upsurge, no matter how insignificant, a close comparison with past amounts during the same period indicates that this was not worth celebrating. If you compare the figures posted during the recent period and those done in the previous years, you then notice that the company experienced a drop. There was a slight change in January 2014 compared to the figures posted in December 2013, although it was too little to be of much impact. JCP now needs to take a proper and in-depth valuation of its assets to see if it has what is needed for a major turnaround.
Piecemeal and sporadic good or better-than-expected financial results will not be of much help to J.C. Penney Company Inc (NYSE:JCP). The company has reached a point where investors need to see serous inputs that will lead to major financial changes to solicit the kind of response that it currently needs to remain viable. JCP has a small window of opportunity that it must utilize if it hopes to turn the ship around and propel it towards profitability. Based on what is currently happening within J.C. Penney Company Inc (NYSE:JCP), the company will probably experience liquidity problems before the end of third quarter 2014. If it has to act, it must do so within a very short span of time.