8 Companies You Use, That Will Close in 2017-Coty, Inc

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Coty, Inc. shares took a plunge in November of 2016 following the company’s poor performance in the fiscal first quarter in which they reported a zero profit for the fiscal first quarter of 2017. Sales and income also took a hit even after Coty, Inc. announced it would be acquiring 44 beauty brands from Procter & Gamble. Now management seems to be blaming the poor performance on the distraction of getting the acquisition finished.

Chairman of the Board Bart Becht stated, “As expected, the extensive work over the last 15 months on closing the transaction and merging the two businesses has come at a cost … the resources which normally work on the business, have also been working on closing the transaction and setting up and preparing for the future of the combined company.” He goes on to add, “The resulting distraction as well as the recent change in management teams in our headquarters, regions and countries have contributed to a decline in Coty standalone revenues and profits” of the first quarter.

The management of Coty, Inc. also noted that the second quarter is likely to look the same in terms of low profitability. However, they are maintaining an optimistic long-term outlook. According to The Wall Street Journal, analysts seem to think the decline in sales reflects a more basic change in the business atmosphere than Coty management admits. Citigroup analyst Wendy Nicholson said in a call to discuss the staggering results, “Help us have confidence that this really negative trend isn’t going to persist throughout the year.”

Becht insists that the long-term earnings forecast remains intact and that the company can now focus on its operations with the integration of the new businesses mostly complete but the acquiring of businesses may be their demise. The New York based company has been aggressively hunting deals to improve and grow its business. The P&G acquisition came with top brands such as CoverGirl, Gucci and Clairol hair dye. In addition, the company agreed to buy hairstyle appliance maker Ghd while last year they purchased Bourjois cosmetics from Channel as well as several Brazilian skin care brands.

8 Companies You Use, That Will Close in 2017-JCPenney


JCPenney has been a familiar name on the list of years past, but at least it is no worse off. Revenue is up ever so slightly year after year and share prices are holding steady since early 2015. It’s a far cry from JCPenney’s height in 2007, but it does show stabilization from a company that was all but destroyed from the 2008 financial crisis.

In May of this year, Forbes did a write up on the tumbling shares of JCPenney after an unexpected decline in sales noting that JCPenney is not immune to the downfall facing multiple retail stores like Macy’s Kohl’s and Nordstrom. Traditional department stores have been struggling with the decrease in mall traffic and the increase in competition from discount stores like TJ Maxx and Ross.

JCPenney has been trying to get the store back on track ever since the reinvention efforts of CEO Ron Johnson failed miserably. Now it is placing its bets on Sephora and the national roll out of appliances within the store. “We remain confident that our turnaround remains on track,” stated current CEO Marvin Ellison. However, they have admitted that banking on the appliances and online revenue is breaking into the company’s bottom line.

During that reporting quarter, JCPenney sustained a loss of $68 million which was nothing compared to the loss of $144 million they suffered the year before. Total sales fell as well as shares. It’s hard to imagine how JCPenney – well known as the comeback kid of retailers – will get themselves out of this cycle of loss. The debt laden company remains far from profitable making any slowdown in sales worrisome to investors.

But what do the supporters and critics have to say of the company that never dies? JCPenney might have a fighting chance for a few reasons. The company can outperform its peers. It has been on the less extreme end of the losses that have become all too familiar in with department stores. Even if apparel sales remain sluggish, JCPenney does have the opportunity to pursue growth in other areas such as the home department. Unfortunately, this department seemed to fare the worst during their plunging sales of 2012 and 2013.

8 Companies You Use, That Will Close in 2017-Sprint

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Sprint is among the familiar names that once again appear on the lists of downtrodden companies. The company saw a decline in revenue even though it added more subscribers. The problem here is that its biggest competitors are adding subscribers faster and as of August of last year, the company fell to number 4 in the country’s carrier rankings. Quarterly revenues continue to decline while postpaid business is not looking strong and they have a high debt and no dividend equal making it an unattractive stock.

In May of 2016, shares of Sprint increased 10% from their morning low leading investors to cheer the company’s report, focusing on cost-cutting measures. However, critics and analysts warned to not buy into the hype because the carrier was still struggling. Sprint released a statement that it had “delivered more postpaid phone net additions than Verizon and AT&T for the first time on record in the fiscal fourth quarter.” While that may sound impressive, the numbers are not. The numbers only added 56,000 subscribers which was ¼ of the year period prior and around 1/10 of what in saw in the December quarter. Meanwhile, average revenues per user declined sequentially by more than 1.5%.

Sprint can talk a big game about the number of subscribers it is adding, but the company continues to finish fiscal quarters with declining revenue numbers. The company still isn’t bringing in enough new customers as the wireless war continues and gets more competitive. Consumers are now paying less and less for services meaning Sprint needs to be adding millions of new subscribers each quarter and that just is not happening.

Now to think of what the numbers could be if Sprint stops adding subscribers or even loses customers in the coming months. There has been a slow down in US phone upgrades as was seen with Apple’s latest results. This leaves Sprint Corporation in an unstable situation with the future of the company on the line.

4 Reasons Why Trump Picked Priebus For Chief Of Staff: He’s One Of The Best ‘Fix-It’ Men In The Swamp

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Priebus took over the RNC in 2011 with multiple problems on his plate from the get go. The committee was $24 million in debt with major donors fleeing. A top official had just been fired over a fundraiser at a strip club in Los Angeles. After becoming the longest serving chairman of the RNC, the debt is gone while the wealthy insiders and officials who compromise and donate to the RNC offer praise.

Priebus had a tough job in rebuilding a party that lost the popular vote in the last five of six presidential elections. The Republican Party also lost power completely with Obama’s 2008 victory, but four years later, instead of giving up the fight, he announced that the RNC would conduct a vigorous look into all that had gone wrong. After Mitt Romney’s loss in 2012, Priebus vowed to figure out the most effective way to refashion the party for more modern times.

Sally Bradshaw co-authored a report and stated that “it wasn’t the RNC’s fault that things didn’t work out in 2012.” She goes on to say “but Priebus was willing to say ‘There’s no other entity that can do this’.” Priebus knew that he and his fellow GOP members were the ones that could turn this around.

Not too long ago, Priebus was interviewed and wanted to make sure the media and public were aware of the GOP’s ‘forward progress’. “The changes we’ve made are historic,” he said at the RNC headquarters where the multitude of GOP portraits are enough to inspire even the most skeptical.

Although Priebus may come off as the sober boss, he surprises with his understated competence. “He disarms you with his ‘aw, shucks, I’m from Kenosha’ routine,” says RNC finance chairman. “But he’s very politically astute. He’s the best fundraising chairman I’ve ever seen,” the former senior adviser added.

4 Reasons Why Trump Picked Priebus For Chief Of Staff: He Was Loyal To Trump

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Let’s be real. Trump rewards those who are loyal to him… that is until they have outlived their usefulness… and Priebus was loyal to a fault, even going so far, on occasion, to side against grassroots Republicans in favor of the Trump campaign.

In the weeks prior to Trump’s campaign prevailing, the media attempted with fail to make a sport out of getting Priebus to admit that his party was falling into pieces. However, Priebus stood by his ground and assured the public that things within the party were going just fine. Media commentators at one point even likened him to the Saddam Hussein spokesman nicknamed “Baghdad Bob” who continued to maintain that a victory was in the future while US bombs came crashing down around him.

CNN interviewed Priebus in April of 2016 and attempted to bring out any misery that he was hiding, but he stayed true to Trump. “People assume, oh, you must be miserable. You’ve got a horrible job. But I don’t see it that way,” he said. “I’m not pouring Baileys in my cereal.”

In a May interview at the RNC headquarters in Washington, Priebus offered up some insight to the forward progress made. While surrounded by portraits of GOP leaders of the past, Priebus assured the media that Trump would soon be added to the slew of great Republican Party leaders. “I think he’s gonna win,” he said. He went on to assure that Trump was not ruining Priebus’ push to modernize the party. In fact, Priebus alluded that not only would his efforts not be wiped out by Trump, but that they might just save his nominee.

Priebus closely advised Trump during his campaign which led to winning over multiple skeptics. He played it smart, as he does, and remained neutral during the primary and maintained his frequent contact with president-elect Trump. The RNC chairman remained as the constant behind Trump while the rest of the characters behind Trump changed repeatedly.

Reince Priebus may have been the butt of the joke at times in his effort to bring Trump’s antics to a lower key, but the joke seems to be on those very critics. Now he is seen as the fore-runner in helping Trump pull off this election and get a much deserved Republican win.