Another big loss for J.C. Penney as sales plunge 16.4%
ChainStoreAge.com - May 20th, 10:56
Plano, Texas -- J.C. Penney Co. reported a deeper-than-expected loss of $348 million for its first quarter, compared to $163 million in the year-ago period, amid a 16.4% decline in revenue. The results came as the company seeks to undo the damage caused by former CEO Ron Johnson’s costly and largely failed makeover.
Excluding restructuring and management transition charges and noncash pension plan expense, Penney’s adjusted net loss for the first quarter, ended May 4, was $289 million. Revenue dropped 16.4% to $2.64 billion. Same-store sales fell 16.6%, worse than the 15% decrease analysts predicted.
Penney blamed the revenue declines on Johnson’s failed pricing and marketing strategies. The retailer also said that construction to revamp its home departments had put a dent in sales.
In a conference call with analysts on Thursday, Penney's new chief executive, Mike Ullman, said that reconnecting with its customers will take time. He said that the retailer recognised.
“the magnitude of the challenges that we face, and we believe we can put J.C. Penney back on a pathway to profitable growth."
He pledged to re-emphasise the Penney private brands, the shelved St. John’s Bay for women’s is coming back, and to improve the performance of its online store.
"Over the last year, jcp.com functioned as a completely separate entity inside the company, with little synergy between stores and online," Ullman said.
SA wool prices softer
24/10/2013 - 09:41
Port Elizabeth - The South African wool market ended softer this week, Cape Wools said on Wednesday.
UK clothing label George hits local shelves, today
23/10/2013 - 12:51
Massmart will open the doors to three George pop up stores today, to give South African consumers a taste of the famous British brand of clothing.
Walmart accelerating U.S. small store growth; upping tech investments
17/10/2013 - 11:18
Bentonville, Ark. - Wal-Mart Stores detailed a number of moves, including opening smaller stores in the United States, cutting back on overseas growth and increasing its investments in technology and e-commerce, on the occasion of the company’s 20th annual investor meeting.
IBM revenue hit by emerging market sales
17/10/2013 - 11:14
IBM reported a 4 percent drop in third-quarter revenue, worse than expected by Wall Street, amid a decline in hardware and emerging markets even as it beat earnings estimates.
NPD Group: Holiday shoppers to spend more; seek out deals, United States
17/10/2013 - 09:23
Port Washington, N.Y. -- The majority of consumers intend to spend the same as or more than last year, with fewer saying they plan to spend less, according to The NPD Group’s Holiday Spending Survey, the twelfth annual survey of consumers’ holiday spending intentions.