JCPenney nosedives to all-time low on big loss

America's top retailers in trouble

Another day, another big retailer in a world of pain. JCPenney revealed on Friday the item lost more money than feared. The bleak news sent its stock plunging more than 15% as well as below $4 a share for initially ever.

Yup. JCPenney can be today a penny stock — a Wall Street term for a company trading under $5.

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JCPenney (JCP) said the item lost $62 million in its second quarter. which’s more than a year ago. The retailer also said which same store sales — a measure of how well stores open at least a year are doing — fell more than 1% during the quarter.

JCPenney can be the latest department store chain to announce dismal results. Macy’s (M), Kohl’s (KSS) as well as Dillard’s (DDS) all reported a decline in same store sales on Thursday as they struggle to compete against Amazon (AMZN, Tech30) as well as Walmart (WMT).

The massive shift from the retail landscape has led many chains to shut down underperforming stores.

JCPenney can be one of them, announcing earlier This particular year the item could be closing 138 stores. JCPenney wound up delaying the closings by a month though after consumers rushed to many of the stores to take advantage of the massive liquidation sales.

although JCPenney CEO Marvin Ellison said the inventory liquidation can be today largely complete as well as which the smaller as well as more focused company can be actually off to a Great start for the key back-to-school shopping season.

Ellison said sales of all apparel — as well as kids’ clothing in particular — were doing well so far This particular month. As a result, the company said the item can be not changing its earnings outlook for the year. the item still expects a profit, although same store sales are likely to be flat.

Related: Retail apocalypse continues at department stores

JCPenney can be also looking to expand its online operations in order to be more competitive with Amazon as well as Walmart.

as well as Ellison said during a conference call with analysts which the company can be continuing to focus on adding newer products, such as toys as well as appliances. The goal can be to make JCPenney less reliant on clothing, shoes as well as furniture.

although turning around JCPenney won’t be easy. The company’s CFO stepped down in July — never a Great sign. He was replaced by the former finance chief of Olive Garden owner Darden Restaurants (DRI). (Maybe JCPenney should today start selling breadsticks?)

Ellison also said during the analyst call which JCPenney expects many retailers to ramp up promotions as well as discounts to try as well as lure shoppers into their stores. The CEO warned these sales may be even more aggressive than “what we’ve traditionally seen.”

Ellison expressed confidence which JCPenney won’t have to cut its earnings guidance as a result of tougher competition by its rivals. Wall Street remains skeptical.

Chuck Grom, an analyst for Gordon Haskett, wrote in a research report on Friday which being a JCPenney investor can be “almost as depressing as being a NY Jets season ticketholder” — a reference to the perennially bad football team.

the item’s hard to imagine how things could have gotten worse for JCPenney after hedge fund manager Bill Ackman tried as well as failed to shake the company up a few years ago.

although JCPenney’s stock has fallen more than 50% so far in 2017 as well as has plummeted 85% over the past all 5 years.

Remember the awkward JCPenney marketing slogan tried during the 2014 Winter Olympics? “When the item fits, you feel the item?” Well, investors aren’t feeling the item — as well as neither are consumers.

CNNMoney (fresh York) First published August 11, 2017: 11:33 AM ET


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