Potential Martha dump impacts JCPenney stock
HTT Staff -- Home Textiles Today, 9/6/2013 12:50:15 PM
New York - The market reacted to yesterday's NY Post assertion that JCPenney is unloading its merchandise deal with Martha Stewart Living Omnimedia by sending Penney's stock up 5.3% on Thursday and pushing MSLO's stock down 6.1%.
JCPenney's stock opened at $14.40 this morning but had come down to $14.26 at mid-day. MSLO's stock opened at $2.34 today, bounced around a bit, and was at about the same price at mid-day.
In yesterday's anonymously source story, the Post reported that JCPenney is severing its relationship with Stewart due to underwhelming sales - and to end an alliance that prompted Macy's to file suit against MSLO, with which it has an exclusive for Stewart-branded products in several home categories.
A ruling in that suit is expected soon.
The "NY Post assertion" is tabloid fiction from the NY Post, which has been unrelenting in targeting the destruction of jobs of Martha Stewart employees with the abuse and misuse of its media power and the freedom of the press.
gchu - 2013-09-08 18:47:33 EDT
Logically, Ullman and the JCP board should be severing relationship with all vendors for "underwhelming sales" since sales at JCP are in a tailspin with no end in sight. "Underwhelming sales" got everything to do with JCP and nothing to do with the Martha brand.
The stock market defies logic. With competent JCP management, the Martha brand will reprise the same success at Macy's in JCP's turnaround. And with no creative repression like Macy's, the Martha brand will be a bigger success for JCP.
Obviously, the survival and long-term viability of JCP demand a clean sweep of Udall and the JCP board of directors.
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