JCPenney 2015 Annual Report Download - page 7

Table of Contents
Mr. Drexler has served as Senior Vice President, Chief Accounting Officer and Controller since June 2015. Prior to joining the Company, he served as Senior
Vice President and Chief Financial Officer of Giant Eagle, Inc. (grocery retailer) from 2014 to 2015. He also served as Senior Vice President, Finance, and
Corporate Controller for GNC Holdings, Inc. from 2011 to 2014. Prior to that, Mr. Drexler spent 11 years at Wal-Mart Stores, Inc. in roles of increasing
responsibility, including Vice President of Finance for the information systems division from 2010 to 2011. Earlier in his career, he held a variety of roles
with PricewaterhouseCoopers, LLP. Mr. Drexler is a certified public accountant.

The following risk factors should be read carefully in connection with evaluating our business and the forward-looking information contained in this Annual
Report on Form 10-K. Any of the following risks could materially adversely affect our business, operating results, financial condition and the actual outcome
of matters as to which forward-looking statements are made in this Annual Report on Form 10-K.


As we position the Company for long-term growth, it may take longer than expected to achieve our objectives, and actual results may be materially less than
planned. Our ability to improve our operating results depends upon a significant number of factors, some of which are beyond our control, including:
• customer response to our marketing and merchandise strategies;
• our ability to achieve profitable sales and to make adjustments in response to changing conditions;
• our ability to respond to competitive pressures in our industry;
• our ability to effectively manage inventory;
• the success of our omnichannel strategy;
• our ability to benefit from capital improvements made to our store environment;
• our ability to respond to any unanticipated changes in expected cash flows, liquidity and cash needs, including our ability to obtain any additional
financing or other liquidity enhancing transactions, if and when needed;
• our ability to achieve positive cash flow;
• our ability to access an adequate and uninterrupted supply of merchandise from suppliers at expected levels and on acceptable terms;
• changes to the regulatory environment in which our business operates; and
• general economic conditions.
There is no assurance that our marketing, merchandising and omnichannel strategies, or any future adjustments to our strategies, will improve our operating
results.

The retail industry is highly competitive, with few barriers to entry. We compete with many other local, regional and national retailers for customers,
employees, locations, merchandise, services and other important aspects of our business. Those competitors include other department stores, discounters,
home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses, including those on the Internet, and other forms of retail
commerce. Some competitors are larger than JCPenney, and/or have greater financial resources available to them, and, as a result, may be able to devote
greater resources to sourcing, promoting, selling their products, updating their store environment and updating their technology. Competition is
7