J.C. Penney introduced Tuesday that vacation gross sales fell and it plans to shut three shops by the spring as a part of an ongoing analysis of its efficiency. For the 9 weeks ended Jan. 5, similar-retailer gross sales fell 3.5 p.c on an adjusted foundation. On an “unshifted foundation, ”total sales had been down 5.4 % at shops open not less than a 12 months. The retailer didn’t specify which shops it deliberate to shut however stated it could present extra data when it reviews fourth-quarter outcomes on Feb. 28.
The corporate mentioned it nonetheless expects to “generate optimistic free money move in fiscal 2018, cut back stock in extra of $225 million or 8% and expects to end the year with liquidity in extra of $2 billion.” J.C. Penney shares closed Tuesday at $1.21. The inventory, which has misplaced greater than 67 p.c over the past 12 months, was not too long ago buying and selling beneath the $1 mark.
It first breached $1 on Dec. 26, as buyers nervous vacation gross sales could be reduced on the division retailer chain. Though the retail business is on the monitor to have its greatest vacation buying season in six years, not all shops are benefiting from the freer spending. Penney has been struggling to show its enterprise round. It misplaced its CEO Marvin Ellison to Lowe’s in July. In October, the corporate tapped former Joann Stores chief, Jill Soltau, for the highest job.
Penney’s has been harm by a pile-up of unsold stock, which has put a strain on its earnings. When a retailer has a backlog of unsold merchandise, they incline to slash costs to clear cabinets. Different retailers, together with Macy’s and Kohl’s, made enhancements in managing their merchandise last year and are anticipated to go into 2019 on sound footing.
The corporate additionally has struggled to promote development-proper attire, at a time when the attire business as a complete goes by way of considerably of a renaissance with clothing sales climbing once more.