J.C. Penney Shares Plummet After Disastrous Q4

by Christopher Freeburn | February 28, 2013 9:34 am

J.C. Penney Shares Plummet After Disastrous Q4

JC Penny 1 300x199 J.C. Penney Shares Plummet After Disastrous Q4[1]On Wednesday, J.C. Penney (NYSE:JCP[2]) announced that it lost $552 million during the fourth quarter[3], significantly worse than the $87 million it lost during the same period a year ago.

Investors didn’t like the results, sending J.C. Penney shares down more than 15% in Thursday morning trading.

The struggling retailer said that sales during the holiday quarter tumbled to $3.88 billion, down 28% from the prior year. That disappointed Wall Street, which was looking for sales of $4.08 billion, Bloomberg noted.

Annual sales were down $4 billion, marking the retailers worst annual revenue performance in more than two decades.

The poor results put more pressure on CEO Ron Johnson, the former Apple (NASDAQ:AAPL[4]) executive, who was hired to turnaround the floundering chain’s fortunes. Johnson implemented a “no sales” campaign that bombed with consumers. J.C. Penney has recently moved to return discounts and sales to its marketing[5].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/JC-Penny-1.jpg
  2. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  3. during the fourth quarter: http://www.sfgate.com/business/bloomberg/article/J-C-Penney-Posts-Wider-Net-Loss-as-Johnson-4314137.php
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. moved to return discounts and sales to its marketing: http://investorplace.com/2013/01/j-c-penney-brings-back-sales-to-win-back-customers/

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