Published: Sat, January 11, 2020
Markets | By Otis Pena

JC Penney Feels The Holiday Season Pinch: Can The Retailer Survive 2020?

JC Penney Feels The Holiday Season Pinch: Can The Retailer Survive 2020?

The less-than-stellar reports from the retailers came after a shaky end of 2019 where a number of companies in the sector slashed full-year profit outlooks ahead of the ever-important holiday shopping season.

It marked Macy's first quarterly comparable store sales decline in nearly two years.

Zoom out: Holiday sales figures were the wrinkled bow on top of a lackluster year for department stores. Kohl's blamed weakness at its women's apparel business back then as well.

"E-commerce is definitely compromising the competitiveness of the physical assets of retailers", CFRA Research analyst Camilla Yanushevsky said. Signage is displayed at the entrance of a JC Penney department store inside the Manhattan Mall on May 15, 2017 in the Herald Square neighborhood in New York City.

The retailer said that its comparable store sales decreased by 7.5 %.

L Brands said comparable sales, which include sales from company-owned stores in North America open at least a year and digital sales, fell 3% for the nine weeks ended January 4.

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Trump famously said in 2018 that he and Kim "fell in love" and that the North Korean letter wrote him "beautiful letters". On Friday, a South Korean official said Trump had asked the South Koreans to pass on birthday greetings to North Korea.

Bed Bath & Beyond reported dismal 2019 fiscal third quarter earnings Wednesday, sending its shares plummeting Thursday.

Victoria's Secret owner L Brands (LB.N) on Thursday lowered its profit forecast for the fourth quarter after reporting a 3% drop in comparable-store sales for the holiday period, but its shares rose slightly. L Brands stock added almost 1%.

The weak results come from the fact that overall retail sales should have increased for the Holidays, stimulated by a strong economy.

In recent months, Kohl's has made efforts to meet shifting consumer tastes, such as housing products from smaller, niche labels at 50 of its 1,200 stores through the Curated by Kohl's program that rolled out in mid-October.

There were a couple of traditional retailers that bucked the trend, including clothing chain Buckle Inc (NYSE: BKE), which reported December comps up 5% and saw its shares rising Thursday, and Costco Wholesale Corporation (NASDAQ: COST) which was one of the holiday winners with comps up 9%, pushing its stock higher by 2%.

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