J C Penney Company Inc (NYSE:JCP) is “very strong” as the retailer reaps benefits of the economy among other factors, Jim Cramer remarked in a recent segment of CNBC’s “The Mad Dash”.
According to Cramer, J C Penney Company Inc (NYSE:JCP) being strong is not going to jive with what many people think of the company.
However, he noted that the company may be reaping the benefits of an economy that supports more spending. He said that the U.S. has job creation, lowering price of gasoline and deflation.
As an example of how J C Penney Company Inc (NYSE:JCP) also affects other companies, Cramer noted how PVH Corp (NYSE:PVH) has missed in the last three quarters but did well in the most recent quarter.
The “Mad Money” host said that PVH Corp (NYSE:PVH) did well in the last quarter because it sold a lot of merchandise through J C Penney Company Inc (NYSE:JCP) and Kohl’s Corporation (NYSE:KSS) among other things.
Cramer commented that every time something negative comes along for PVH Corp (NYSE:PVH), its CEO, Emanuel Chirico, is always there to provide a solution. Connected to why retailers like J C Penney Company Inc and goods manufacturers like PVH Corp are doing well is the fact that the American consumer has started buying jeans and apparels again, Cramer said.
J C Penney Company Inc has also done a lot of collaboration with what are known as the “heritage” brands for people, Cramer added.
J C Penney Company Inc (NYSE:JCP) shareholders includes Patrick Mccormack’s Tiger Consumer Management, a hedge fund which reported about 7.23 million shares in the company by the end of 2014’s first half.