Wednesday, February 27, 2013

Groupon, JC Penney Crash After Hours on Missed Earnings, Very Weak Outlook

I wonder where the Japan under so-called "Abenomics" is planning to sell their goods. I guess it has to be to the so-called "One Percent" wealthy Americans, as JC Penney and Groupon are not really about these "One Percenters" but about the dwindling so-called "middle class" and "working class" people who want to stretch their dollars which got crimped further by 2% rise in employment tax starting January 1, 2013 thanks to the wealthy president and wealthy Congress.

Groupon, down 25% after hours:

Revenue: $638 million expected, $638 million actual
Profit per share: 3 cents expected, but the actual result was a loss.
Forecast: $650 million expected, the company guided to $560 to 610 million

JC Penney, down 12% after hours:

Revenue: $4.08 billion expected, $3.884 billion actual
Profit per share: -23 cents expected, 2.51 dollar actual
Q4 Comp store sales excluding the 53rd week were down 31.7%
Q4 Internet sales down 34.4%

Speaking of "Abenomics", I really thought the word was like "Obamacare", a satire, caricature, a snide. I was so wrong. Prime Minister Abe himself proudly referred his economic policies of cheapening yen as such, in his English speech at the CSIS the other day. Go figure. The world is nuts.


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