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Tags: JC | Penney | Profit | Forecast

J.C. Penney Declines After Profit Forecast Misses Estimates

Thursday, 05 January 2012 09:34 AM EST

J.C. Penney Co. fell in early trading after providing a fourth-quarter profit forecast that fall short of analysts’ estimates.

The stock dropped 5.8 percent to $32.90 at 8:55 a.m. before regular New York trading. The shares had risen 8 percent in the past year before today.

New Chief Executive Officer Ron Johnson, who took over in November after running Apple Inc.’s retail operations, is reviewing products, pricing and promotional strategies to help revive sales.

J.C. Penney, the third largest department store chain, said in a statement today that fourth-quarter profit would come to 65 cents to 70 cents a share. It had projected profit of as much as $1.15. Analysts estimated $1.08 on average.

December sales and traffic were “softer” than it had anticipated, the Plano, Texas-based department store chain said.


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Thursday, 05 January 2012 09:34 AM
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