S&P 500
7,582.20
+0.03%
Dow Jones
51,018.80
+0.58%
Nasdaq 100
30,344.40
+0.25%
Russell 2000
2,916.31
-0.54%
FTSE 100
10,378.60
-0.32%
Nikkei 225
66,231.90
+0.67%

Retail

Dispute Between Macy’s, Penney Goes to Court (M, JCP, MSO)

Photo of Paul Ausick
By Paul Ausick Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Back in February, J.C. Penney Co. Inc. (NYSE: JCP) signed a contract with Martha Stewart Living Omnimedia (NYSE: MSO) to create Martha Stewart Living stores within Penney’s own stores. Macy’s Inc. (NYSE: M), which believed it had an exclusive contract to the Martha Stewart brand, was not amused, and was able to get injunctive relief to stop Penney from moving ahead with the plan.

Now Macy’s has filed suit seeking damages from Penney for interfering with Macy’s contract with Martha Stewart. Penney argued — unsuccessfully — that the ‘store-within-a-store’ concept did not violate the contract between Macy’s and Martha Stewart.

Martha Stewart Living filed an appeal of the injunction last week. Arguably Martha Stewart needs the deal with Penney more than Penney needs it. The company has been unprofitable in eight of the last nine years, mainly on the drop in its publishing and broadcasting businesses.

Today’s lawsuit filing raises the stakes again for Penney and its struggling CEO, Ron Johnson, who introduced the concept in January to much fanfare. Penney’s stock has tumbled from a year-to-date high of more than $43 to around $24 today as revenues and profits have remained elusive.

Penney’s shares are up 1.5% today at $24.03 in a 52-week range of $19.06-$43.13. Macy’s shares are up 0.6% at $38.77 in a 52-week range of $22.66-$42.17.

Shares of Martha Stewart Living Omnimedia are up 1.3% today at $3.12 in a 52-week range of $2.77-$5.19.

Paul Ausick

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Paul Ausick |

Martha Stewart Cites Loophole in Macy’s Contract (MSO, M, JCP)

Martha Stewart Living Omnimedia (NYSE: MSO) was sued last week by Macy’s Inc. (NYSE: M) for breach of contract following…

Paul Ausick |

J.C. Penney, Macy’s Head Back to Court

courtesy J.C. Penney Co. Inc.Retailers J.C. Penney Co. Inc. (NYSE: JCP) and Macy’s Inc. (NYSE: M) are expected to resume…

Paul Ausick |

J.C. Penney, Martha Stewart Win Another Round in Battle with Macy’s

courtesy J.C. Penney Co. Inc.A New York Supreme Court justice this morning threw out a claim of unfair competition brought…

Paul Ausick |

Martha Stewart, Macy’s Settle Differences, but No Deal With J.C. Penney

ThinkstockIn a brief press announcement issued Thursday, Macy’s Inc. (NYSE: M) said that it has resolved its breach-of-contract suit with…

Paul Ausick |

Penney’s Snips Ties to Martha Stewart

courtesy J.C. Penney Co. Inc.Yet another of former CEO Ron Johnson’s big ideas to lift the fortunes of J.C. Penney…

Paul Ausick |

J.C. Penney Will Offer More Sales, Diminish Role of Martha Stewart Brand

courtesy J.C. Penney Co. Inc.A dispute between Martha Stewart Living Omnimedia Inc. (NYSE: MSO) and Macy’s Inc. (NYSE: M) over…

Paul Ausick |

Judge Favors Macy’s Over J.C. Penney in Martha Stewart Conflict

J.C. Penney Co. Inc.A New York state judge ruled Monday that J.C. Penney Co. Inc. (NYSE: JCP) and its former…

Douglas A. McIntyre |

Martha Stewart Stock Should Collapse with Negative J.C. Penney Ruling

ThinkstockShares of Martha Stewart Living Omnimedia Inc. (NYSE: MSO) have fallen 65% in five years, as the company has lost…

Paul Ausick |

Shops Open, J.C. Penney Stock Climbs

Courtesy J.C. Penney Co. Inc.; photo by Chris RupertToday marks the opening of the long-awaited in-store shops at J.C. Penney…

Top Gaining Stocks

Dell Technologies
DELL • Vol: 42,366,555
NetApp
NTAP • Vol: 15,911,807
ServiceNow
NOW • Vol: 68,243,561
IBM
IBM • Vol: 28,527,546
Hewlett Packard Enterprise
HPE • Vol: 86,996,387

Top Losing Stocks

Coterra Energy
CTRA • Vol: 73,319,495
Clorox
CLX • Vol: 4,744,001
ResMed
RMD • Vol: 3,526,686
Intel
INTC • Vol: 191,680,425
Skyworks Solutions
SWKS • Vol: 5,407,806