J.C. Penney’s 3Q loss widens; sales even out
NEW YORK – Even though J.C. Penney’s latest results show the beleaguered retailer is hardly out of the woods, investors still see reasons to cheer. The department store chain’s shares rose 6 percent on Wednesday after it reported its seventh straight quarter of big losses that together total more than $2.4 billion. So why are investors celebrating?
The company began its big downward spiral during an ill-fated transformation strategy under former CEO Ron Johnson, who was fired in April after 17 months on the job. Now, experts say investors are encouraged that Mike Ullman, who took the top job after having led the retailer for seven years before, is beginning to stabilize the business.
“Business is getting better,” said Ken Perkins, president of RetailMetrics LLC, a research firm. Still he added Penney “can’t continue to lose money quarter to quarter and remain a going concern.”