JCPenney (JCP) Rises; Plans Relaunch of Home Goods Line
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JCPenney (NYSE: JCP) is up in early trading following news that the company is planning to relaunch its home goods lineup.
Reuters reported the JCPenney will roll out its home goods offerings starting today. Once a leader in the low-cost home goods segment, the retailer saw revenue for the unit fall from $4.2 billion in 2006 down to $1.3 billion last year. Sales accounted for 20 percent of the retailer's revenue in 2006.
Rivals in the segment that JCPenney hopes to win back customers from include TJX (NYSE: TJX)-owned Homegoods, Target (NYSE: TGT), and Kohl's (NYSE: KSS). Brands being brought back include Cooks cookware and Liz Caliborne bedding, bath, and luggage items. Private brands carry gross margin which is around 5 points better than national brands, on average.
Notably, Citi upgraded the stock earlier in the week, noting an improved home outlook as part of its model.
Shares of JCPenney are up 3 percent Thursday.
Reuters reported the JCPenney will roll out its home goods offerings starting today. Once a leader in the low-cost home goods segment, the retailer saw revenue for the unit fall from $4.2 billion in 2006 down to $1.3 billion last year. Sales accounted for 20 percent of the retailer's revenue in 2006.
Rivals in the segment that JCPenney hopes to win back customers from include TJX (NYSE: TJX)-owned Homegoods, Target (NYSE: TGT), and Kohl's (NYSE: KSS). Brands being brought back include Cooks cookware and Liz Caliborne bedding, bath, and luggage items. Private brands carry gross margin which is around 5 points better than national brands, on average.
Notably, Citi upgraded the stock earlier in the week, noting an improved home outlook as part of its model.
Shares of JCPenney are up 3 percent Thursday.
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