J.C. Penney (JCP) has finally realized its store base has to get smaller in the age of digital shopping.
In the wake of a disappointing holiday season, J.C. Penney said Friday it will close 130 to 140 stores by the second quarter. The store closures represent 13% to 14% of the company's current store base and less than 5% of annual sales. They have a negligible impact on net income. J.C. Penney said same-store sales at the locations were "significantly below" the remaining store base and operate at a much higher expense rate due to poor productivity. Sears Holdings Corp ( (SHLD) ) Macy's ( (M) ), Footlocker ( (FL) ) are other retailers facing similar issues.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Breaking down an approach to the long side of this biotech stock.
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