Penney records bigger-than-expected loss in 2Q
NEW YORK (AP) -- J.C. 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 favor of every day lower prices.
It also withdrew its profit guidance for the year.
The department store, based in Plano, Texas, says that it lost $147 million, or 67 cents per share, in the quarter ended July 28. That compares with a profit of 14 million, or 7 cents per share.
Sales tumbled almost 23 percent to $3.02 billion. Revenue at stores opened at least a year fell 21.7 fell, worse than 18.9 percent drop in the first quarter.
Analysts had expected only a 26 cent loss on revenue of $3.2 billion.
(Copyright 2012 by The Associated Press. All Rights Reserved.)