Feb 28, 2013 No Comments ›› Chuck Biscuits
Excerpted from Bloomberg: The shares fell 18 percent to $17.40 at 11:28 a.m. in New York after earlier declining 22 percent, the biggest intraday drop since at least 1980, according to data compiled by Bloomberg. J.C. Penney yesterday said its net loss in the quarter ended Feb. 2 widened to $552 million from $87 million a year earlier. The Plano, Texas-based retailer’s annual revenue slid 25 percent to $13 billion, the lowest since at least 1987.
Johnson, the former Apple Inc. (AAPL) retail chief who joined as CEO in November 2011, has gone back on his everyday low pricing strategy by adding sales, promotions and new price displays in recent months. While Johnson yesterday reiterated a plan to install 100 boutiques inside most J.C. Penney stores, he also said he had “made some big mistakes.” The retailer’s sales now trail Gap Inc. (GPS) and shrank to half of those at Macy’s Inc. (M)
“The conference call was surreal — I would have been too mortified to appear in public,” Bernie Sosnick, an analyst at Gilford Securities in Melville, New York, with a sell rating on the stock, said in a telephone interview. “You’re getting down to a point where Penney cannot absorb many more significant losses without the damage becoming irreparable.”