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Working with three teammates in the SMIF Research Competition, which concerns about equity evaluation and investment recommendation, I was in charge of the Financial Analysis and Valuation sectors. We picked J.C. Penney as our target company that is now going through the restructuring period. Strategic shifting generated many uncertainties in future's sales, expenses, capital expenditure, capital structure, and cash flows, which place a great more complexity in our analysis and projection.
J.C. Penney belongs to a highly competitive department store retailing industry. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides styling salon, optical, portrait photography, and custom decorating services. It currently has 1,095 stores spread over 49 states and Puerto Rico, and continues to expand its selling space. A big mistake by previous CEO to suspend the promotional strategy hurt J.C. Penney's net sales by $6,875 million, about 25% negative sales growth, in 2012. To boost revenues, J.C. Penney recovered the promotional strategy in this year.
J.C. Penney belongs to a highly competitive department store retailing industry. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides styling salon, optical, portrait photography, and custom decorating services. It currently has 1,095 stores spread over 49 states and Puerto Rico, and continues to expand its selling space. A big mistake by previous CEO to suspend the promotional strategy hurt J.C. Penney's net sales by $6,875 million, about 25% negative sales growth, in 2012. To boost revenues, J.C. Penney recovered the promotional strategy in this year.
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