JCP - J.C. Penney: No Change To Its Trajectory Yet For Better Or For Worse
J.C. Penney's (JCP) holiday sales performance wasn't strong, but one couldn't really say that its performance has fallen off of its previous trajectory. The problem for J.C. Penney is that there is no evidence yet that it is on the new trajectory it needs, which is a rapid return to positive comps. Realistically, J.C. Penney needs both positive comps and improved gross margins in order to be able to refinance its first-lien debt due in 2023. The 2023 first-lien bonds are yielding 10.7% to maturity currently, indicating that substantial improvements in operational performance