JCPenny’s (NYSE: JCP) problems get worse and worse. The retailer said it would cut 350 people at its headquarters, which barely scratches the surface of its cost problems, nor altars a trend that caused its sales to drop 20% in the most recently reported quarter. Credit Suisse issued a report that forecasts another sharp drop in the current quarter.
According to MarketWatch, Credit Suisse analyst Michael Exstein “doubled his adjusted second-quarter loss estimate on Penney to 38 cents a share from his original loss estimate of 19 cents a share. For the year, his estimate excluding charges fell to profit of $1.07 a share from $1.16.” Presumably, JCPenney customers have taken their business to other retailers — most likely Macy’s (NYSE: M) and Sears (NASDAQ: SHLD), which offer similar merchandise.
Douglas A. McIntyre