More bad news for retail. According to this CNBC report JC Penney’s stock has fallen to $4.48, the lowest level since 1972.
J.C. Penney’s stock plunged Friday after the embattled retailer reported weak comparable sales and a massive net loss in the first quarter.
Shares of the stock fell as low as $4.48 intraday, the lowest level since 1972, according to FactSet. The stock closed down nearly 14 percent on Friday at $4.55 per share.
The stock drop came after the company reported revenue that also fell short of estimates in the quarter. Earnings, however, topped analysts’ expectations.
Here’s what the company reported vs. what the Street was expecting:
- Earnings per share: 6 cents, excluding items, vs. a forecast loss of 21 cents, according to Thomson Reuters analysts’ estimates.
- Revenue: $2.71 billion vs. an estimate of $2.77 billion, Thomson Reuters analysts said.
- Same-store sales: 3.5 percent drop vs. a forecast 0.6 percent drop, according to FactSet estimates.
The department store operator’s net loss widened to $180 million, or 58 cents per share, in the first quarter, from $68 million, or 22 cents per share, a year ago.
This was largely due to weaker sales at brick-and-mortar locations during February and higher costs related to store closures and employee severance packages, the company said.
“While February was a very challenging month for JCPenney and broader retail, we are pleased with our comp store sales for the combined March and April period, which improved significantly versus February,” CEO Marvin Ellison said in a statement.
Earlier this year, Penney’s firmed up plans to downsize its brick-and-mortar fleet, telling investors it will close 138 stores starting on April 17 and running through the second quarter.
The 138 stores being closed represent 13 to 14 percent of J.C. Penney’s store portfolio but generate less than 5 percent of annual sales, the company said.
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