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J.C. Penney records bigger-than-expected Q2 loss; 22% sales drop
Plano, Texas -- J.C. Penney Co. reported Friday a bigger-than-expected second-quarter loss of $147 million, compared with net income of $14 million in the same period last year.
Sales plummeted 22% to $3.02 billion from $3.9 billion, and same-store sales tumbled 21.7% after an 18.9% fall in the first quarter. Wall Street had forecast revenue of $3.2 billion.
Facing the investment community on Friday, CEO Ron Johnson admitted to some strategic pricing mistakes, but said he and his team will stay the course.
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Market Track: July 2012
With the start of Back to School promotions, (and taking JCPenney out of the mix) we witnessed increase in page count that was driven mainly by significant increases in Walmart’s and Sears’ page counts.
JCPenney has been drastically altering their promotional strategy in past couple of months, however this month, the store did not promote at all, causing curiosity for many customers. (It should be noted that JCPenney did release circulars the week of July 29th that will be counted in the August report.)
