JC Penney Posts 4th Straight Big Loss, Sales Drop
New York (AP) — Boy, it just wasn’t J.C. Penney’s year.
The mid-priced department store chain reported another much larger-than-expected loss in the fiscal fourth quarter on a nearly 30 percent plunge in revenue in the latest sign that shoppers aren’t happy with the changes it’s made in the past year. The results mark a full year of massive quarterly losses and revenue declines that miss Wall Street estimates since J.C. Penney Co. began a turnaround strategy that included ditching most of its coupons and sales events in favor of everyday low prices, bringing in hipper designer brands such as Betsy Johnson and remaking outdated stores.
The quarterly performance puts additional pressure on CEO Ron Johnson, the former Apple Inc. executive who was brought in about a year ago to turn around the stodgy retailer that was losing money into a hip and profitable company that can compete with the likes of Macy’s or H&M. In the past year since Johnson rolled out his plan, though, even once loyal customers have strayed away from the 1,100-store chain. — Wire reports