Saturday, November 10, 2012

J.C. Penney Shrinking Sales

J.C. Penney Co.'s sales last quarter has gone from bad to worse. The department store chain is headed by a former Apple Inc. retail executive Ron Johnson.

Its sales fell 27% in the three months ended Oct. 27, and it seems the company will continue to stumble as the holiday-selling season approaches.

The drop was worse than Wall Street analysts had feared, and shares in the Plano, Texas-based company fell as much as 10% on Friday before rebounding to finish down nearly 5% at $20.62 on the day.

It lost 56 cents per share, or $123 million in the quarter ended Oct. 27. That compares with a loss of $143 million, or 67 cents per share, in the year ago period. Revenue dropped 26.6 percent to $2.93 billion in the quarter.

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