J.C. Penney Loss Wider Than Estimated as Turnaround Falters [View all]
J.C. Penney Co. (JCP) reported a third- quarter loss that was larger than analysts estimated as Chief Executive Officer Ron Johnson struggles to overhaul the fourth- largest U.S. department-store company. The shares fell.
The net loss of $123 million, or 56 cents a share, in the three months ended Oct. 27 compares with a loss of $143 million, or 67 cents, a year earlier, the Plano, Texas-based company said today in a statement. Excluding restructuring and management- transition costs, the loss was 93 cents a share. The average of analysts’ estimates compiled by Bloomberg was for a 7-cent loss.
Johnson, the former Apple Inc. (AAPL) retail chief who joined as CEO last year, has lost customers as he transforms most J.C. Penney stores into collections of branded shops and implements an everyday low pricing strategy. Johnson said today that the old-style J.C. Penney, which still encompasses most stores, struggled in the third quarter and faces “significant challenges,” calling it “a tale of two companies.”
“The results that J.C. Penney reported today are undeniably weak,” Brian Nagel, an analyst at Oppenheimer & Co., said today in a note. “JCP will require a lot of patience on the part of investors. This chain continues to head towards turnaround.”