...Return to Positive EBITDA: J.C. Penney Company, Inc. (J.C. Penney) has turned the corner with the reintroduction of promotions, key private brands and other remerchandising initiatives, such as beefing up its basics offering and revamping the home department. Fitch Ratings expects J.C. Penney to generate positive EBITDA of $280 million¡$300 million in 2014, based on 4% comparable store sales (comps) growth, gross margin of approximately 35%, and further selling, general and administrative (SG&A) reduction of approximately $140 million¡$150 million. A Long Road Back to Recovery: Fitch expects J.C. Penney to sustain comps growth in the 2%¡3% range and gross margin to improve modestly over the next 24 months. This should result in EBITDA of $375 million¡$450 million in 2015 and $475 million¡$575 million in 2016, assuming SG&A expense is relatively flat to current levels. This is well below the 2011 EBITDA level of $1.3 billion. FCF Still Likely Negative: Fitch expects FCF to be positive $25...
