Retail

J.C. Penney Stock Tumbles after Weak November Sales Reports from Other Retailers

Shopping Mall
Source: Thinkstock
Retailers are announcing November same-store sales Thursday and, once again, J.C. Penney Co. Inc. (NYSE: JCP), which reported a strong gain of 10.1% on Monday, is getting lashed. We’ve noted before that Penney’s gain came on top of a 25% dip in same-store sales a year ago, so beating such a dismal comparison is really nothing special. Plus Penney’s offered such steep discounts that profitability seems remote.

Here’s how some other stores fared in November.

Costco Wholesale Corp. (NASDAQ: COST) reported November same-store sales rose 2% including fuel and currency exchange effects. Excluding those effects, same-store sales rose 4%. Costco had been tabbed to post same-store sales growth of 3.5% (including fuel and currency effects) in the month by research firm Retail Metrics. Total sales rose 5% in November.

Apparel retailer L Brands Inc. (NYSE: LB) reported a November same-store sales decline of 5% compared with Retail Metrics’ estimate for a decline of 1.2%. The negative comparison is the first for L Brands, which operates the Victoria’s Secret and Bath & Body Works chains, since October 2009.

Walgreen Co. (NYSE: WAG) reported same-store sales yesterday, posting a gain of 3.2% over November 2012 sales. Retail Metrics was expecting a gain of 3.7%. The company’s pharmacy sales rose 4%, again lower than the estimate of 4.2%, and front-end sales were up 1.9% compared with an estimate of 2.3%.

Another apparel retailer, Stein Mart Inc. (NASDAQ: SMRT) reported November same-store sales growth of 3.1% compared with an estimate of 3.2%. Same-store sales rose 7.1% in November 2012, so the store had the toughest comparison to beat of any of the stores in this survey.

Shares in all these retailers are trading down today. Penney is off the most, down more than 8% at $8.88 in a 52-week range of $6.24 to $23.10.

Costco’s stock is down about 1.5% at $121.11 in a 52-week range of $96.51 to $126.12.

L Brands’ shares are down about 1.2% at $62.50 in a 52-week range of $42.49 to $67.12.

Walgreen’s shares are down 1.3% at $56.79 in a 52-week range of $35.58 to $60.93.

Stein Mart stock is down 2% at $13.99 in a 52-week range of $6.84 to $16.17.

Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.