J.C. Penney posts large loss as sales sink further

“The bill for J.C. Penney Co.’s first year under Chief Executive Ron Johnson is in, and it’s about $4.3 billion,” Dana Mattioli reports for The Wall Street Journal.

“That’s how much sales at the department store chain dropped in the 12 months after the former Apple Inc. executive cut back on discounts and rolled out a plan to fill stores with dozens of branded boutiques,” Mattioli reports. “Declines worsened through the year, with sales down 28.4% from a year earlier in the fourth quarter, which spans the crucial holiday selling period. The company reported a fourth-quarter loss of $552 million, its worst of the year, and held $930 million in cash on Feb. 2, a decline of 38% from a year earlier. For the full fiscal year, Penney had a loss of $985 million, compared to a $152 million loss the year before.”

Mattioli reports, “The results are a comedown for Mr. Johnson, who arrived with great fanfare from Apple in November 2011 with ambitions to remake a chain that had sold inexpensive clothes to middle-American shoppers for decades… On Wednesday, he backtracked significantly on his plan to limit discounts, telling investors the company will start holding regular sales. ‘We’ll offer sales each and every week as we move forward,’ the CEO said on a conference call to discuss the results.”

Read more in the full article here.

MacDailyNews Take: Yeesh.

Related articles:
JC Penney CEO Ron Johnson capitulates, brings back sales – January 28, 2013
Apple retail’s Ron Johnson and John Browett have proved the Peter Principle is alive and well – November 13, 2012
CEO Ron Johnson switches J.C. Penney to two-tier pricing with price-match guarantee – July 26, 2012
Why is Ron Johnson’s retail strategy for J.C. Penney failing? – June 26, 2012
J.C Penney’s stock tumbles after key exec’s abrupt exit – June 19, 2012
J.C. Penney reports loss and plummeting sales in 1Q – May 15, 2012
Why Ron Johnson left Apple to head JC Penney – April 30, 2012
J.C. Penney lures another executive from Apple – April 26, 2012
Steve Jobs’ ex-lieutenant Ron Johnson adds $1.5 billion to J.C. Penney in two days – January 30, 2012
J.C. Penney CEO Ron Johnson: What I learned building the Apple Store – November 21, 2011
New J.C. Penney CEO Johnson hiring former Apple co-workers – November 9, 2011
Why Apple’s retail genius Ron Johnson is paying for the privilege of running J.C. Penney – June 15, 2011
Apple’s retail store chief Johnson off to J.C. Penney; expected to become CEO within months – June 14, 2011


  1. Apple products sell themselves. There is no comparing them and JCP. JCP was a sinking ship before Johnson got there and that hasn’t changed. They are an outdated dept store thats heyday is centuries gone, and its not coming back

  2. 1. Once people get used to seeing ‘On Sale’ or whatever percent discount, and then to take that away, even though it might be a supposed better strategy to the talking heads running the company, would fail, especially in this economy. It’s just a perception that you are getting a better deal with on sale attached.
    2. JCP stores are stale, and outdated, much like sears. They need a major makeover.

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