Shares of J C Penney Company Inc (NYSE: JCP)
plummeted more than 25 percent early Friday morning and hit a new all-time low of $2.70 after the department store provided an update on its third-quarter
performance and full-year guidance.
JC Penney guided its third-quarter comparable-store sales to increase in a range of 0.6 to 0.8 percent but also guided its
full-year fiscal 2017 comparable store sales to be down 1 percent and at best flat. The company previously guided its comparable
store sales for the full year to be at best positive 1 percent.
In addition, the company said it will record an adjusted loss of 40 to 45 cents in the third quarter in conjunction with a
clearance sale for women's and apparel categories.
"Based on the encouraging results from a third quarter reset in women's apparel, which expanded our casual and contemporary
offering, we made the strategic decision to accelerate a wider transformation of the entire women's department by clearing
slow-moving inventory primarily in women's and other apparel categories.
"Following this comprehensive reset, we saw an improvement in performance, particularly in our women's division, confirming
these actions were necessary to drive growth in our women's apparel business," said Marvin R. Ellison, chairman and CEO for JC
Penney in a press release.
Other Stocks Moving
The impact of JC Penney's lowered outlook is evident in other department stores and direct-competitor retailers:
-
Macy's Inc (NYSE: M): Down 5.58 percent at $20.15.
-
Kohl's Corporation (NYSE: KSS): Down 4.79 percent at
$42.50.
-
Sears Holdings Corp (NASDAQ: SHLD): No change at
$6.06.
-
Bon-Ton Stores Inc (NASDAQ: BONT) was trading
higher by more than 15 percent, although this is attributed to company-specific encouraging news from Thursday.
Investors may want to pay particularly close attention to other brick-and-mortar retailers amid JC Penney's cautious guidance.
Here is a brief summary and their performance early Friday morning:
-
Target Corporation (NYSE: TGT): Down 0.82 percent at
$61.50.
-
Wal-Mart Stores Inc (NYSE: WMT): Down 0.45 percent
at $88.22.
-
Nordstrom, Inc. (NYSE: JWN): Down 0.73 percent at
$41.90.
-
Dillard's, Inc. (NYSE: DDS): No change at $54.33.
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