J.C. Penney (NYSE: JCP) sinks after president leaves following short tenure

Atlanta, GA 6/19/12 (StreetBeat) -- JC Penney (NYSE: JCP) just kicked its president — Michael Francis — to the curb in the wake of dismal sales and what appears to be a failed turnaround attempt, but the retailer is still kicking. This rebranding effort is still young and if leadership stays the course, it could still be the most interesting retailer of 2012.

Heck, it still is, it’s just not yet successful. When CEO Ron Johnson climbed on board, jcpenney was already a sinking ship. For all those screaming that Johnson is to blame for the retailer’s financial losses need only look at the declining trends of the past few years. Recession or no, jcpenney had to do something.

What Johnson did was among the most daring moves in retail history. Eliminating the constant and confusing sales, streamlining the employee base, revamping marketing collateral and embarking on an effort to turn stores into a main street — a mini-mall if you will — that would showcase new and unique merchandise from various partners was epic.

But it hasn’t been an epic fail, as fellow Forbes contributor Steve Olenski writes. Not yet. Jcpenney is certainly teetering on the brink, it could back off this strategy and try something else, but what?

Does Johnson have a choice? What else can jcpenney be?

It doesn’t want to be Macy’s (NYSE: M), with its constant sales. There’s no room for two such department stores. Macy’ doesn’t really have room for two either, juggling and differentiating Macy’s from Bloomingdales is no small task.

Nor can jcpenney be Kohl’s (NYSE: KSS), a more direct competitor than Macy’s. Former management tried that and newer jcpenney stores look so much like a Kohl’s only the lack of sale signs distinguish the two chains. These photos were taken at jcpenney and Kohl’s stores withing a mile of each other in Valporaiso, IN.

Being the same isn’t what Johnson is about. He’s about being different, something he learned at Apple (Nasdaq: AAPL).

But jcpenney is a publicly traded company and he may not have much time. Differentiating is a monumental task. If Johnson and team could have developed the merchandise plan, signed on the partners and unveiled its main street concept in sync with a new marketing plan, advertising and spokesperson, it might have worked.

It still can, but Francis’ departure doesn’t bode well for jcpenney’s ability to stay the course.

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Macy's (NYSE: M) 1Q earnings up 38 percent

Atlanta, GA 5/9/12 (StreetBeat) -- Macy's (NYSE: M) is reporting a 38 percent increase in its first-quarter profit as the department store chain continues to reap benefits from its move to tailor its fashions to local markets.

The results beat analysts' expectations but the company failed to boost its guidance for the year.

Macy's Inc. shares fell 4 percent in early premarket trading.

The retailer said Wednesday that its net income rose to $181 million, or 43 cents per share, for the three-month period ended April 28. That's up from $131 million, or 30 cents per share, a year ago.

Revenue rose 4.3 percent to $6.14 billion.

Analysts surveyed by FactSet had expected 40 cents per share on revenue of $6.14 billion.

Revenue at stores opened at least a year climbed up 4.4 percent for the quarter.

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Holiday spending pushes Macy's (NYSE: M) 4Q profit higher

Orlando, FL 2/21/12 (StreetBeat) -- Macy's Inc. (NYSE: M) said strong holiday and online sales helped push its fiscal fourth-quarter net income up 12 percent. The department store chain's results topped Wall Street's expectations and its stock climbed in trading before the market open.

Macy's, which runs Bloomingdale's and its namesake stores, is reaping the benefit of tailoring merchandise to local markets. It has been outperforming mid-price peers such as Kohl's Inc. and J.C. Penney Co (NYSE: JCP).

"Our year was punctuated with a terrific holiday selling season as our customers responded to our assortment of most-wanted merchandise for gifts and self-purchase, as well as compelling marketing campaigns," Chairman, President and CEO Terry Lundgren said in a statement.

Macy's stock added $1.19, or 3.3 percent, to $37.44 Tuesday morning.

Macy's earned $745 million, or $1.74 per share, for the period ended Jan 28. A year ago it earned $667 million, or $1.55 per share.

Excluding gains from the sale of store leases related to the 2006 sale of Lord & Taylor and expenses tied to some store closings, earnings were $1.70 per share.

Revenue rose 5.5 percent to $8.72 billion from $8.27 billion. Online sales, which include results from both the Macy's and Bloomingdale's web sites, jumped 40 percent.

Revenue at stores open at least a year, which includes online sales, climbed 5.2 percent. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

The quarterly results topped the expectations of analysts polled by FactSet, who predicted earnings of $1.65 per share on revenue of $8.7 billion.

For the year, Macy's earned $1.26 billion, or $2.92 per share. That compares with earnings of $847 million, or $1.98 per share, in the previous year. Adjusted earnings were $2.88 per share.

Full-year revenue increased 5.6 percent to $26.41 billion from $25 billion. Online sales rose nearly 40 percent.

Revenue at stores open at least a year increased 5.3 percent.

The company, which has corporate offices in Cincinnati and New York, expects fiscal 2012 earnings of $3.25 to $3.30 per share. Wall Street predicts $3.27 per share.

Macy's also anticipates its online sales will surpass $2 billion in 2012 and that revenue at stores open at least a year will climb about 3.5 percent.

Macy's has about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.

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LargeCap Stocks to Watch Today

Swan Lake, MS 11/28/2011 (StreetBeat) – AT&T is considering an offer to divest a significantly larger portion of assets than it had initially expected to salvage its $39 billion merger with T-Mobile USA, according to a Bloomberg report.

The exact size of the disposals hasn't been determined, said a person familiar with the plan, but they could be as much as 40% of T-Mobile USA's assets, Bloomberg reported.

The asset sale is an attempt to address the concerns of the Justice Department, which sued to block the takeover on Aug. 31, and the Federal Communications Commission which last week signaled an attempt to block it, Bloomberg said.

Retailers that opened at midnight or earlier on Black Friday, like Wal-Mart , Target , Macy's , Kohl's and Best Buy , saw on average a 24% boost in their conversion (the number of shoppers that actually made a purchase), according to the NPD Group, a consumer research firm.

As shoppers go online Monday to find the best deals -- a day now known as Cyber Monday -- Amazon.com could be a big winner. Cyber Monday 2010 was its peak day last year, the company said.

Ralcorp , the maker of Raisin Bran cereal and other packaged foods, is expected to post fourth-quarter earnings. The report was originally scheduled for Nov. 8, but was delayed pending the completion of a goodwill impairment analysis of the company's Post cereals business.

Analysts expect Ralcorp to earn $1.39 a share in the fourth quarter on revenue of $1.22 billion.

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Macy's Strong 3Q Earnings Results, Boosts Outlook

Palm Beach, FL 11/9/11 (StreetBeat) --Macy's Inc.'s (NYSE:M) net income surged in the third quarter as the department store chain benefited from tailoring its merchandise to local markets. The retailer also raised its full-year profit outlook Wednesday.

Macy's says it earned $139 million, or 32 cents per share, for the three months ended Oct. 29. That compares with 2 cents per share, or $10 million, in the same period last year. Revenue rose 4.1 percent to $5.85 billion.
Analysts had expected earnings of 16 cents per share on revenue of $5.87 billion, according to FactSet.

"You can feel the momentum and confidence that has been building at Macy's since our organizational changes in 2009, and especially over the past nine months," Terry J. Lundgren, chairman, president and CEO of Macy's, said in a statement. "We believe this will help us to continue to capture market share in the fourth quarter and lay the foundation for continued innovation in our business in 2012."

Macy's, which also operates Bloomingdale's, is the first in a series of major retailers reporting third-quarter results as they head into the critical holiday shopping season, which can account for as much as 40 percent of annual revenue. Macy's has a lot of momentum going into the season.

The chain has benefited from the strategy Lundgren conceived to localize merchandise as consumer spending began slowing down in 2007. Stocking more products that cater to specific regions, like more business suits in Washington, D.C., for instance, was lacking since the chain ditched its regional nameplates such as Marshall Field's and Hecht's.

A better-trained sales force also helped. In September 2010, the company trained about 130,000 sales associates and managers on engaging customers. A big component is more intense coaching of workers by store and district management teams.

Such strategies have helped it to outperform its peers. Macy's revenue at stores opened at least a year rose 4 percent for the third quarter, and it said Wednesday it continues to expect that measure to rise anywhere from 4 percent to 4.5 percent for the current quarter. Rival J.C. Penney Co. reported that the figure fell 1.6 percent for the third quarter. Kohl's Corp.'s saw a 2 percent increase.

Revenue at stores open at least a year is an important indicator of a retailer's health because it excludes stores that recently opened or closed.

Macy's on Wednesday raised its full-year outlook to a range of $2.70 per share to $2.75 per share. The company had said in August that it had expected to earn anywhere from $2.60 per share to $2.65 per share. Analysts had projected $2.66 per share for the year.

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Stocks to Keep an Eye on Today

PepsiCo (NYSE:PEP) offered to buy 66% of Russian dairy products and fruit-juice maker Wimm-Bill-Dann for $3.8 billion. Pepsi will offer to buy the remaining shares once the acquisition is completed, the company said in a press release Thursday.

Wimm-Bill-Dann Foods (NYSE:WBD) shares rose 30.4%, or $7.45, to $31.95 in premarket trading Thursday. Pepsi shares rose less than 1% to $65.75.

Luxury homebuilder Toll Brothers (NYSE:TOL) reported a swing to profit in the fiscal fourth quarter on a tax benefit as revenue and homebuilding deliveries fell. Toll posted fourth-quarter net income of $50.5 million, or 30 cents a share, a swing from a year-earlier loss of $111.4 million, or 68 cents a share. Toll shares were falling by 1.4% to $18.20 in premarket trading.

November same-store sales reports, which include results from the Black Friday weekend, largely topped estimates. Shares of Abercrombie and & Fitch (NYSE:ANF) surged by 7.6% to $54.25 in early trading as the retailer said same-store sales rose 22%, beating the increase of 6.8% that analysts expected.

Gap (NYSE:GPS), Macy's (NYSE:M) and Target (NYSE:TGT) also all posted better-than-expected same-store sales gains in November. Gap fell 0.3%, Macy's rose 0.8% and Target tacked on 1.3% in premarket trading. Warehouse retailer Costco said comparable-store sales in November rose 9%. Analysts surveyed by Thomson Reuters were expecting same-store sales to increase 6.2%. Shares of Costco (NASDAQ:COST) were up 0.9% to $68.91 in premarket trading.

Kroger (NYSE:KR), Novell (NASDAQ:NOVL) and Phillips-Van Heusen (NYSE:PVH) are among the companies reporting quarterly earnings Thursday.

Novell was down 0.2% to $5.95, and Kroger was down 6.1% to $22.40 before the markets open Thursday; Phillips-Van Heusen finished Wednesday at $70.02, up 3.2%.

China-based specialty chemical manufacture Chemspec International (NYSE:CPC) says it has received a financing letter from its chairman and CEO regarding a proposal to acquire certain outstanding shares of the company. The stock ended Wednesday's trading session up 1.1% to $7.23.

Stocks to Keep an Eye on Today

PepsiCo (NYSE:PEP) offered to buy 66% of Russian dairy products and fruit-juice maker Wimm-Bill-Dann for $3.8 billion. Pepsi will offer to buy the remaining shares once the acquisition is completed, the company said in a press release Thursday.

Wimm-Bill-Dann Foods (NYSE:WBD) shares rose 30.4%, or $7.45, to $31.95 in premarket trading Thursday. Pepsi shares rose less than 1% to $65.75.

Luxury homebuilder Toll Brothers (NYSE:TOL) reported a swing to profit in the fiscal fourth quarter on a tax benefit as revenue and homebuilding deliveries fell. Toll posted fourth-quarter net income of $50.5 million, or 30 cents a share, a swing from a year-earlier loss of $111.4 million, or 68 cents a share. Toll shares were falling by 1.4% to $18.20 in premarket trading.

November same-store sales reports, which include results from the Black Friday weekend, largely topped estimates. Shares of Abercrombie and & Fitch (NYSE:ANF) surged by 7.6% to $54.25 in early trading as the retailer said same-store sales rose 22%, beating the increase of 6.8% that analysts expected.

Gap (NYSE:GPS), Macy's (NYSE:M) and Target (NYSE:TGT) also all posted better-than-expected same-store sales gains in November. Gap fell 0.3%, Macy's rose 0.8% and Target tacked on 1.3% in premarket trading. Warehouse retailer Costco said comparable-store sales in November rose 9%. Analysts surveyed by Thomson Reuters were expecting same-store sales to increase 6.2%. Shares of Costco (NASDAQ:COST) were up 0.9% to $68.91 in premarket trading.

Kroger (NYSE:KR), Novell (NASDAQ:NOVL) and Phillips-Van Heusen (NYSE:PVH) are among the companies reporting quarterly earnings Thursday.

Novell was down 0.2% to $5.95, and Kroger was down 6.1% to $22.40 before the markets open Thursday; Phillips-Van Heusen finished Wednesday at $70.02, up 3.2%.

China-based specialty chemical manufacture Chemspec International (NYSE:CPC) says it has received a financing letter from its chairman and CEO regarding a proposal to acquire certain outstanding shares of the company. The stock ended Wednesday's trading session up 1.1% to $7.23.

Some LargeCap Stocks to Keep an Eye on Today

Among the companies whose shares are expected to see active trade in Wednesday's session are Cisco Systems Inc., Macy's Inc. and Polo Ralph Lauren Corp.

Cisco (NYSE: CSCO) is expected to report fiscal first-quarter earnings of 40 cents a share, according to analysts surveyed by FactSet Research.

Macy's (NYSE: M) is forecast to post earnings of 3 cents a share in the third quarter.

Polo Ralph Lauren (NYSE:RL) is estimated to report a profit of $1.67 a share in the fiscal second quarter.

Computer Sciences Corp. (NYSE: CSC) is expected to report earnings of $1.18 a share in the fiscal second quarter.

After Tuesday's closing bell, International Game Technology (NYSE: IGT) reported it swung to a fiscal fourth quarter profit but not enough to satisfy Wall Street estimates.

Watch List

Allstate Corp. (NYSE: ALL) announced a $1 billion share buyback program.

General Growth Properties Inc. said it emerged from bankruptcy and will launch an initial public offering.

Invesco Ltd. (NYSE: IVZ) said that it was launching a secondary offering of shares owned by a Morgan Stanley (NYSE: MS) affiliate.

Lions Gate Entertainment Corp. (NYSE: LGF) swung to a second-quarter loss of 22 cents a share on debt charges.

MBIA Inc. (NYSE: MBI) said it narrowed its third-quarter loss as it paid off claims on mortgage-backed securities.

Prudential Financial Inc. (NYSE: PRU) said it restored its annual dividend to 2007 levels.

Tesla Motors Inc. (NASDAQ: TSLA) said its third-quarter loss widened, but narrowed on a per-share basis since the electric car maker went public, as sales slipped.