J.C. Penney Sales Dive Again as Home Departments Prove Costly
PLANO, Texas-J.C. Penney's sales plummeted once again in its fiscal first quarter, and home was partly to blame, according to a preliminary report on the department store retailer's financial performance.
For the quarter ending on May 4, J.C. Penney's sales totaled about $2.6 billion, down 16.4 percent from last year's first quarter. This includes a same-store sales drop of 16.6 percent. The company said the sales decline was partly attributable to the construction of the new home departments in 505 of its stores.
In addition, J.C. Penney said, sales fell also because of its previous pricing and marketing activities, "which are being changed under new leadership." During the quarter, CEO Ron Johnson left, succeeded by former Chairman and CEO Myron Ullman III.
For the fiscal year ending on Feb. 2, J.C. Penney reported that sales dropped 24.8 percent, including a fall in same-store sales of 25.2 percent. The company also posted a net loss of $985 million.