JC Penney records loss and falling sales

Reported by AAP
Friday, August 10, 2012

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JC Penney Co is reporting a bigger-than-expected loss and plummeting sales, as its customers continue to be turned off by a new pricing plan that gets rid of hundreds of sales in favour of everyday lower prices.

It also withdrew its profit guidance for the year.

The department store, based in Plano, Texas, says it lost $US147 million ($A139.54 million) in the quarter ended July 28.

That compares with a profit of $US14 million.

Sales tumbled almost 23 per cent to $US3.02 billion. Revenue at stores opened at least a year fell 21.7 per cent, which was worse than an 18.9 per cent drop in the first quarter.

Analysts had expected revenue of $US3.2 billion in the second quarter.

22/05/2013 05:56Sydney, Australia. 22 May,2013
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