JCP PR Ploy Backfires
SAN DIEGO (TheStreet) -- Shortly after the J.C. Penney (JCP - Get Report) press release hit last night on how its post-Thanksgiving weekend sales were up 10% I tweeted: "JCP big comps for the holiday weekend but... against what? The company didn't issue post-t'giving #s a year ago, which likely were a bust."
With the stock's pre-market decline this morning, it appears investors have come to realize the release was little more than a PR ploy that apparently has backfired.
Reality is this: While the company didn't give post-Thanksgiving sales last year they were sandwiched between -26% and -31% quarterly comps.
Against that kind of performance, it isn't hard to show what appears to be a turnaround, especially with, as JCP put it in the press release, "compelling promotions."
More recently, performance overall has improved, so anything in the plus column should not have been a surprise.
The good news, I guess, is that the patient has a pulse.
-- Written by Herb Greenberg
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