JC Penney rises on Izod sales

Not seeing a positive blip in a longer-term negative story could cost you.

By Jim Cramer Nov 29, 2012 10:17AM

TheStreet LOGOSiri Stafford Photodisc Getty Images

How important is Izod to J.C. Penney (JCP)? From the looks of Tuesday's action -- when I simply reiterated in the morning what PVH (PVH) CEO Manny Chirico said Monday night, that its Izod brand is selling well at J.C. Penney -- it seems very important.

But as is often the case, the way to play Izod is with PVH.


Izod is one of the legacy brands that have gone from being a negative when it comes to growth -- not cash flow, as it is always bountiful-- to being a positive. You have 7% growth in legacy now versus losses, and some of that is because of the push by J.C. Penney to feature Izod as one of its key brands.

 

The reason I say that you should play Izod with PVH is simple: I don't know what J.C. Penney is making on Izod, but I do know that PVH is being paid its price no matter what. For all I know, J.C. Penney is giving the stuff away.

Still, I am watching Green Mountain Coffee Roasters (GMCR) go higher and it reminds me that you can't stay too negative on any stock once expectations are lowered. Green Mountain's expectations had been lowered and lowered and lowered, so it was capable of bouncing when it beat the final lowered results.

 

J.C. Penney is in the same boat. Let's be simple about this: The news that PVH's legacy brands are selling well at J.C. Penney is better for J.C. Penney than news it is selling worse. This just might be a positive blip in a longer-term negative story, but to not even call it a blip is to not even acknowledge that Green Mountain might be doing better than people thought it would.

 

Sorry, I can't be that kind of stupid. That costs you money.

 

 

jim cramer's face

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in the stocks mentioned.  

 

 


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69Comments
Nov 29, 2012 12:45PM
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"Hostess Brands Inc. is asking for a judge's approval to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.

The maker of Twinkies, Ding Dongs and Ho Hos says the incentive pay is needed to retain the 19 corporate officers and "high-level managers" during the liquidation process, which could take about a year. Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The bonuses would be in addition to their regular pay.

The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year. Rayburn is being paid $125,000 a month"


Wars have started for lesser reasons. High pay for FAILURE. This isn't AMERICA, it's New World Order.

Nov 29, 2012 12:55PM
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V_L .....The Twnkie Fiasco...Was a War of lesser proportions.

 

It appears Evil and Greed (money) triumphed over the Good or Logic....

 

And to The Victors go the spoils...

Everyone else has lost....Sound familiar.??

Nov 29, 2012 10:44AM
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JC Penney is following the Sears and K-mart lead of going out of business.

 

the store is empty and no one is in line at the cash registers

Nov 29, 2012 1:47PM
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"The reason I say that you should play Izod with PVH is simple: I don't know what J.C. Penney is making on Izod, but I do know that PVH is being paid its price no matter what. For all I know, J.C. Penney is giving the stuff away."

During the stupid year for JCP, whole racks of IZOD product (every size) could be had right off the rack for $2 each. No one could buy them wholesale at that price- which doesn't even cover the shipping cost at freight. That said, the cost to leave them on the rack exposed to commercial light and both air and heat for fade and shrinkage would exceed the $2, so the price reflected the need to move it or lose it, without any profit in it. That said, every retailer including Wal-Mart discovered too late that those deep deep clearance prices helped a lot of fledgling businesses compete directly against them during high volume seasons like we have right now. The yolk is all over mass-marketing and over-supply. The trucker's wife made a few kitchen dollars off it and more savvy retailers got a pretty mean dog in the unit sales fight.
You look at things strictly as an investor. Reality says that is a losing proposition today. There is more than just sales decay, stupid has made too many terminal decisions these past several years. The average BIG is truly infected with college types who know their i-Phone but not much about cycles and how the machine really works.

Sears, K-Mart and Penneys are seeing their last quarter. There are over 10,000 publicly traded specialty and discount retailers that will follow before Summer 2013. The days of racks without reason relying on coupons cliques and mass-anything is over. The bigger they are, the worse the post-mortem revelations will be. 
Nov 29, 2012 2:39PM
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I'm SO GLAD that my old buddy ABS NAZI BIGOT RACIST is still alive.   I had thought his pea brain exploded at 11:18 PM EST on 11/6/12, that was when the President was declared victorious.  Oh and by the way, ABS NAZI BIGOT RACIST, did you take notice I was 3 minutes off on my prediction...I had predicted the victory declaration at 11:15 PM EST, oh well.

 

One final item, ABS NAZI BIGOT RACIST....did you buy the book...maybe learn a little American Presidential Election History......"THE 13 KEYS"  did ya punk!!

 

Oh by the way...I'm Caucasian.

 

Stupid Moron.

Nov 29, 2012 1:18PM
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Well time to go play pool with those "oldtimers" that are sitting on their CDs and a few in some Mutual Funds...Most of them got the fear of the gods put in them in 2007-2009...

And many have lost twice by now...

Nov 29, 2012 1:27PM
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Ok, true confessions....my wife got herself in a little credit card debt some years ago.  She ran up $12,600 on the credit cards (this coming from a guy who is proud of the fact that I have never paid a dime in credit card interest).  Anyway, she had a JC Penny card, which she ran up to $3,600....but the card had a so called limit of $2,000.   Pennys let her go over, nearly double of the card limit.  You see they get even more interest doing that.  I will never buy anything from JC Penny, ever.

 

Almost forgot to add...I sat down and wrote checks to bail her out.  it's good to have funds in the old bank.

Nov 29, 2012 12:01PM
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"The reason I say that you should play Izod with PVH is simple: I don't know what J.C. Penney is making on Izod, but I do know that PVH is being paid its price no matter what. For all I know, J.C. Penney is giving the stuff away."

What lazy analysis - surely it's also possible that pvh is giving a sweetheart deal to JCP penney to pu**** brand .......I have to say this cramer is possibly the worst "pundit" on earth .....he predicts pretty much EVERY eventuality and then trumpets the ones he calls correctly. Just like the slots in vegas - lots of noise and lights when you when - stoney silence when you lose !
Nov 29, 2012 12:48PM
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"WASHINGTON (AP) - An index measuring the number of Americans who signed contracts to buy homes in October jumped to nearly its highest level in almost six years. Steady job gains and record-low mortgage rates have made home buying more attractive.

The National Association of Realtors said Thursday that its seasonally adjusted pending home sales index rose 5.2 percent to 104.8 in October. Excluding a few months when the index spiked because of a home buyer tax credit, that is the highest level since March 2007."


Just YESTERDAY the figures were adjusted DOWNWARD and by quite a bit. The National Association of Realtors has been accused of manipulating figures for YEARS. Self-serving and divisive. When do we get GOVERNMENT willing to crush corruption? No New World Order and NO MORE DATA. If they are FACTS, prove it.

Nov 29, 2012 6:55PM
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JOBS, Chris?  I can only say one thing, and its going to hurt me because for factual and substantial purposes, a whole 'white paper' should actually be issued to support the following, but my synopsis is as follows:

DEMS: Jobs....the country needs jobs.
REPS:  So, what to do?
DEMS: Pass the Obama Jobs Bill, repairs the infrastructure and circulates money.
REPS:  Sounds kinda socialist to me.
DEMS: Damnit, its Americans Helping Americans.  Whats wrong with that?
REPS:  It would increase the debt far too much. A jobs bill is a spending bill.
DEMS: Morons, you didnt mind spending way too much on Iraq and A-stan.
             How is it you can afford to do that AND keep it off-balance sheet to
             pulverize two foreign countries and payback Halliburton et al, BUT
             you cannot afford to do something (for far less money) to support
            the American people, labor and the Middle class? How can you
            possibly be that simple-.....

REPS: Vacation Time !!!

That is our problem with jobs in a nutshell, Chris.  The ones who could
make it happen spent their time / energy / money setting up USA for failure
and trying to place blame on Obama instead of paying attention to what was
good for the entire nation. 

Our other problem: Voters in Red States who willingly sign off on their best
interests in order to return these same ruffians and villagers to the Congress.
because they are in accord with villifying 'darkies, gimps, takers, leeches,
house flippers, public employees, union members' and the like. 

The point being is...it takes spending money to make money, an adage
which apparently is not supposed to work when done with public funds,
through some strange breach of logic. 
 

Nov 29, 2012 5:02PM
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I figure the day we hear about a stand-off at some Library; ABS will probaly be gone for awhile..

But guess they can get computer privileges at some of the "Big Houses."

Nov 29, 2012 4:55PM
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A-gitating B-ull S-hidtter....

My hand is white on both sides...But did get in yo' momma's wood pile once. ONLY ONCE.

Not here to Debate about our Esteemed President...He got re-elected..Boooooyahhhh !!

 

You are never out.....Bad Penny.

Nov 29, 2012 2:12PM
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i don't shop in various stores because when walking by or even into them with my wife they look like a "chick" store.  nothing strikes my eye as a product a man would have interest in.  JC Penney, Kohls, others fit this "look" to me. 

 

if your store only attracts at best 50% of the population, you just cut your potential market in half. 

Nov 29, 2012 1:08PM
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Ice Cold..Right now we seem to have the Markets, stumbling all over themselves..

In  "anticipation mode".

 

If a person wants to buy on some 1-3% dips there are still some decent equties available...

Many are starting to run back towards their highs...It's a conundrum.

We have plowed most dividends back into DCA or a few newer choices..Mostly heavier Div. types.

My position is we will get some type of deal out of Washington...?? 

Whether Wall St. likes it, remains to be seen; (I'm starting to sound like Cramer.)

I feel irregardless, Good Companies, good fundamentals will play out in the long run..

And still think our recovery is intact...Without a major "double dip."..IMO

Nov 29, 2012 11:46AM
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Bank of America (TO CROOKED TO FAIL)  DIE BANK OF AMERICA DIE  !
Nov 29, 2012 7:28PM
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LOM....Will book mark that offering and Fund information, but I'm not a MFund kind of investor anymore.

The taxing issues with Most MLPs and LPs can be a problem...So that would be an advantage with the Funds....But Distributions would be a question..And how much their "CUT" would be ??

Fees can kill a lot of those gains the same as unusal taxes..

 

Chris....The Infrastructures need to be or re-built out, but that also includes Power grids. and DSL..

Hi-Tech manufacturing isn't much different then low tech in the old days....The buttons and switches are just prettier and have more advanced functions...Mid-grade electronic and electrical degrees along with any highschooler with sense could do the job.

Nov 29, 2012 6:17PM
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Jobs......... How do you create them?

There are curently 3 million jobs in the USA that are unfilled ..... most are very specific jobs manufactoring high tech things, air craft parts and some are for techs to monitor/control automated manufactoring processes.  These jobs go unfilled as they cannot find people with the right skills.  Community colleges and these companies need to get together and create programs for these jobs, and kids today need to understand that working in a factory and getting your hands a little dirty is not evil, but what the country was built on.  This isn't our dads manufactoring, not hundreds turning a screw on a line but controlling high tech equipment, seting up for new products to be made, looking to see if the process can be improved. 

We all talk about rebuilding America, they say it will take 1 trillion to redo the roads, bridges etc.  It is going to require a public/private system, like it or not.  Perhaps USA companies only? 

These ideas are a start, but this kind of discussion needs to happen, more importantly things need to start getting done!

Nov 29, 2012 6:13PM
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Well we held them(scumbags) off, only beat up three or four....They tried to get us about 3:30edt..

We chased them into the Womens restroom....But I think a couple were hiding under the desk..

Selling a few chits about 3:45 or so...

Lot of buying&selling today, tugging and pulling..Manage to get about +37 somewhat of a surprise..

But the better side was the Russell 2K or RUT2K...Pushed over 1% nearer the 825 mark...A good reading on the overall Markets..

Upsides:

Most Energy sector, Oil/gas, Coal, even alt/e Solar was up.

Auto Mfg....Had a great day..Pent up demand...Hurc. Sandy ??

Most Gaming upside...Gamblers cutting loose.?

Tobacco had a good day...Even with the new rulings.

REITS turned the corner late....To go about even.

Facebook a big winner up about a buck.

Downsides:

Most Retailers down...Not sure why....Kohls led the pack deeper.

(Walgreens one of the good side exceptions.)

Gold and Goldminers doing some readjusting...

Like I said, some REITS, fair to middlin'

Restaurants or types..Also fair to middlin'

Looking forward to tomorrow...Another day. 

Nov 29, 2012 5:40PM
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Hey, did you hear?  Recession has hurt the worlds oldest profession, too?

Yes, thats right!  Now Alias has to suck 2 KOCHS, not just one, and take half the pay.

However, he does it for the enrichment.

Sleep well, ABS....Sleep well, you adorable putz.

Nov 29, 2012 5:05PM
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You have a good memory, and sorry about your Mom; Most good mothers are gone.

Miss Lilly said she never dated one, but we got friends. Sends her condolences too.

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