For J.C. Penney, the Q2 Results Don't Change Its Fate
J.C. Penney (NYSE: JCP) has $1.75 billion in cash available and $4 billion in debt, much of which comes due in 2023, according to its second-quarter earnings report. That gives the company time to negotiate with its creditors to push those debts further off.
The problem is that most of that cash is a revolving credit line and the retailer had only $175 million in actual cash as of Aug. 3. On the plus side, that's about what it had at the same time last year ($171 million on Aug. 4, 2018), but it's not enough to engineer a turnaround or pay off debt.
And while the company roughly maintained its cash position, it did so by cutting its inventory by 12.5%. The chain still saw comparable-store sales drop by 9%, and it lost $48 million -- better than last year's Q2 loss of $101 million.
Source Fool.com
