J.C. Penney Gains with Overhaul Plans, Brighter Forecast
Shares of J.C. Penney (NYSE:JCP) climbed nearly 11 percent Thursday after the company forecasted increased profits in 2012, along with announcing plans to trim costs and give its stores a facelift, according to a MarketWatch report.
The retailer said it is planning to cut costs by $900 million with a two-year target of bringing expenses to under 30 percent. It also announced it will spend $800 million in cash from operations on a planned “transformation” of its stores.
Penney expects fiscal year 2012 earnings “to meet or exceed” its 2010 bottom line of $1.59 a share, or $2.16 a share, on an adjusted basis.
Here’s how JCP shares closed the day:
J. C. Penney Company, Inc. (NYSE:JCP): JCP shares recently traded at $40.72, up $6.44, or 18.79%. They have traded in a 52-week range of $23.44 to $41.00. Volume today was 46,875,238 shares versus a 3-month average volume of 3,927,140 shares. The company’s trailing P/E is 44.50, while trailing earnings are $0.92 per share.