J.C. Penney CEO Mike Ullman says he sees
a slight uptick in sales recently. Top execs at the company think that consumer trends may more favorable in the coming year than originally thought. The executives met at the analysts and investors' meeting yesterday in New York.
With signs of improvement, Penney's revised for the second time its first-quarter earnings per share guidance to flat or slightly positive. Initially, the company was projecting a loss of 20 to 30 cents, and about two weeks ago revised it again to a loss of 5 to 10 cents.
"I never thought flat to slightly positive would look so good," said Bob Cavanaugh, executive vice president and chief financial officer. "There clearly is a stabilization day-to-day that gives us a lot more confidence."
Major spring clearances are expected to break in a matter of weeks, but not with the intensity and depth of last fall's frenzy, because retail inventories are more in line across the industry. "We will see more of the traditional promotions," said Ken Hicks, Penney’s president and chief merchandising officer.
Penney's and other major retailers have been working hard to create back to school collections that they hope will pull the year out of the fire. It's too early to tell if that strategy will pay off.
