NEW YORK, NY / ACCESSWIRE / May 23, 2018 / It was a bleak day for shares of J.C. Penney as they sank to a new low on news that the company's CEO is leaving immediately. Chief executive Marvin Ellison has taken on the role of CEO of Lowe's and is leaving the struggling retailer in the midst of a turnaround. Many on Wall Street fear his departure was because he does not have faith in his plan. Shares of Lowe's also saw a drop on the news.

RDI Initiates Coverage on:

J. C. Penney Company, Inc.
https://www.rdinvesting.com/report/?ticker=JCP

Lowe's Companies, Inc.
https://www.rdinvesting.com/report/?ticker=LOW

J. C. Penney Company, Inc. shares closed down 6% and sank to a new low of $2.28 after Wall Street learned that the company's chief executive Marvin Ellison was jumping ship. Ellison has served as leader of the company since August of 2015 and his departure has many concerned that this could be the end for J.C. Penney. The Retail Doctor, whose real name is Bob Phibbs and is a consultant, spoke to TheStreet this week and said, "It can't be anything less that an 'Oh my God!' for the brand." Ellison is leaving the company immediately and has taken on the position of CEO for Lowe's. According to Neil Saunders, the managing director of GlobalData Retail, "Exiting before his plan is complete is a tacit admission that he may not be able to deliver what investors are looking for." According to Saunders, Ellison's departure may mean he is "not particularly optimistic about the future prospects of JCP." "If there was any chance [of a turnaround], I think you would stay," said Jim Cramer on "Squawk on the Street." He added, "Because it would obviously be such a kick in the face of J.C. Penney to move over."

Access RDI's J. C. Penney Company, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=JCP

Lowe's Companies, Inc. shares closed down 1.88% on Tuesday on higher volume than usual at almost 10.8 million shares traded. The home improvement retailer made a big announcement yesterday when it said that it has hired Marvin Ellison to be its new CEO. Ellison is currently the CEO of struggling retailer J.C. Penney. Ellison previously spent 12 years at Home Depot working various senior roles and even was executive vice president of the company for some time. Snagging him to lead Lowe's may be a strategic move as he has experience with the company's number one rival. According to analyst Alvaro Lacayo of Gabelli & Co., "Ellison is well regarded, and this is a positive for Lowe's especially at a time when Lowe's is looking to improve store productivity. Ellison was in charge of making sure stores were running efficiently, and productivity per square foot increased substantially between 2008 and 2014 and beyond." Ellison held the position of CEO at J.C. Penney from August 2015 until May this year.

Access RDI's Lowe's Companies, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=LOW

Our Actionable Research on J. C. Penney Company, Inc. (NYSE: JCP) and Lowe's Companies, Inc. (NYSE: LOW) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com