Dive Summary:
- In its first year as a specialty department store under new CEO Ron Johnson, J.C. Penney reported a staggering decline in sales of $4.3 billion to $13 billion for the full 2012 fiscal year, with a net loss of $985 million, or $4.49 per share.
- Initiatives that could prevent sales from being as terrible in 2013 include the J.C. Penney credit card now doubling as a loyalty card, strong jewelry promotion on key holidays, and several new shop openings that include brands like Martha Stewart, Pantone Universe and Michael Graves.
- Forbes contributor Walter Loeb forecasts a 22% decline in sales for the first quarter of 2013, though he says it will probably be the worst quarter of the year for the company.
From the article:
... Taking out all special charges connected with the transition of J.C.Penney stores to a specialty department store, earnings would have been a loss of $766 Million or ($3.49) per share. In all my years, I have never seen a loss of momentum of these proportions. It is clear to me J.C.Penney lost its core customer during the transformation. ...
