J.C. Penney Co. spooked investors ahead of the holiday season, after the struggling department-store chain slashed its profit goals for the year and warned of weakening sales.
Penney said its decision to discount and clear out slow-moving inventory in women’s apparel and other clothing departments increased revenue in September and October but significantly hurt earnings. The company’s shares tumbled on the news.
The Plano, Texas, company now expects per-share earnings, excluding certain costs, of 2 cents to 8 cents for its fiscal year ending Jan. 31, well below its previous guidance for earnings of 40 cents to 65 cents.
Penney added that comparable sales are unlikely to improve for the year as i…
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