JC Penney Extends A Gloomy Week For Retailers

UPDATED | August 11, 2017 8:13 AM

PLANO (AP) — Sales at established J.C. Penney stores faded again during its most recent quarter, capping a gloomy week for U.S. retailers.

Penney’s stock plummeted 15 percent to below $4 a share in premarket trading Friday. If that trends holds, it would be a first time for the 115-year-old retailer.

Another quarter of falling same-store sales from J.C. Penney Co. come a day after similar reports from Macy’s, Kohl’s and Dillard’s, as people increasingly avoid malls and shop online or at discount retailers. Nordstrom stood alone, reporting it’s same-store sales rose in the most recent quarter.

Sales fell 1.3 percent at established stores during J.C. Penney’s second quarter, the fourth straight quarter of declines. The decline was worse than the 1.2 percent drop that Wall Street analysts expected, according to FactSet.

The Plano-based company has closed stores and started selling washing machines, refrigerators and other appliances in some stores to try and boost sales.

But second-quarter earnings also missed expectations.

It reported a net loss of $62 million, or 20 cents per share, in the three months ending July 29. In the same period a year ago, it reported a loss of 56 million, or 18 cents per share.

Losses, adjusted for one-time gains and costs, came to 9 cents per share, falling short of the 6 cents per share loss that analysts expected, according to Zacks Investment Research.

Revenue rose 1.5 percent of $2.96 billion in the period, which beat forecasts of $2.87 billion.

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