JC Penney Company Inc (NYSE:JCP) has today announced a new men’s outdoor clothing range, which has boosted JCP stock nearly 15%.
Investors in JCP Stock Feeling Bullish
JCP’s new range will see the company launch an outdoor store in 100 of its 830 department stores next month. It will also launch a new brand called St. John’s Bay Outdoor in 600 stores and online as early as tomorrow, September 12. This new range will include woven shirts, jackets, vests, waterproof pants, and other outdoor gear as the company explores the crossover between outdoor and “a night out in style.” The new range has investors in JCP shares feeling bullish, as reflected in the soaring value today.
“With this expansion, [JCP] is taking part in the nearly $900 billion outdoor recreation industry by offering functional, durable apparel with our customer expectations at the core, all at an incredible value,” said Michelle Wlazlo, Chief Merchant at JC Penney.
Positive Sign of Recovery for JCP Stock
It’s a positive sign of recovery for JCP stock, less than a month after the struggling retailer was slapped with a delisting warning by the NYSE as a result of trading below $1.00 for 30 consecutive days. At the time that warning was issued, JCP stock was trading around $0.55, but has since seen its recovery efforts contribute to strong gains and is now up to $1.17. The retailer had been struggling as a result of falling customer traffic, which led to disappointing financial results and was not helped by the highly indebted position of the company.
JCP stock has also been buoyed by the recruitment of debt restructuring specialists Kirkland & Ellis and Lazard. “The firms […] have worked on significant workouts with other retailers, including on a debt restructuring earlier this year for luxury clothier Neiman Marcus Group Ltd executed without the need for a bankruptcy filing.”
Featured Image: DepositPhotos © SundryPhotography