Piper Jaffray Has Thoughts On Apparel (JCP)

Piper Jaffray has some thoughts on the apparel sector, including J.C. Penney JCP. In the research note, Piper Jaffray says, "Our proprietary pricing analysis points to a -0.7% decline during the first three weeks of September, marking the eighth consecutive month of declines. July CPI data indicated apparel prices fell -0.4% Y/Y versus our index at -0.9%. Pricing likely remains down due to lower costs of imported units along with a continued focus on driving traffic and market share through reinvesting in price. Apparel imports continue to show Y/Y growth and this increase in inventory, coupled with lower prices, is likely to limit merchandise margin improvements in the 2H'CY10." Shares of J.C. Penney closed at $22.33 yesterday, a gain of $1.18 or 5.58%.