What: JCPenney owner, Simon Property Group, has been dragged down in the third quarter following costs linked to the beauty launch for JCPenney, declining y-o-y sales and the group’s investment in Reebok.

Why it is important: The Simon Property Group owner remains confident in the mall business as customers return to stores and occupancy rates increase yet analysts are uncertain about the group’s recent investments dragging down the overall Q3 report.

While the CEO has reported that the 2020 purchase of JCPenney is providing a 60% ROI, it would remain valuable even if that number falls leading some to ask questions. Simon Property Group claims that e-commerce has been flatlining, yet the US Department of Commerce has reported that e-commerce’s percentage of total sales is equal to 2021 at 14% which is still higher than pre-pandemic numbers.

The group reports that its “better brands” such as Brooks Brothers, Lucky Jeans and Nautica are performing well, although specific results are not released and thus cannot be fully substantiated.

JCPenney posts poor Q3