J.C. Penney (JCP) Slides on Good News, Bad Reviews
Shares of Plano, Texas, based J.C. Penney Co. Inc. (JCP) fell $.60 to $5.08 per share, a decline of 10.56% on volume of nearly 112 million shares. Despite reporting a 2% increase in same store sales for the fourth quarter of 2013 - the first such increase since the second quarter of 2011 - industry analysts declared that the improvement was insufficient to improve prospects for the ailing retailer.
J.C. Penney Co. Inc. is one of the largest retail department store chains in the US, operating more than 1,100 stores in all 50 states. It employs 116,000 employees. The company has been an internet retailer since 1998, and also leases departments within its stores to companies such as Sephora and Seattleâ s Best Coffee. For fiscal year 2013 the company posted a net loss $985 million on gross revenue of nearly $13 billion. After growing steadily through 2009, expanding revenues and opening new stores, the company has been in decline. In addition to various management changes, the company has launched a stream of marketing initiatives and re-branding efforts that have failed to improve sales and profits. Last month the company announced the closing of 33 stores as well as the elimination of 2,000 employees. Before the market opened on Tuesday, J.C. Penney issued a preliminary report indicating that its fourth quarter same-store sales were up 2%, including a 3.1% increase for the nine week holiday shopping season. J.C. Penney CEO Mike Ulman said in a statement, â
Published on Feb 5, 2014
By Kevin Mercadante