Penney reports loss and plummeting sales in 1Q

Associated Press + More

By ANNE D'INNOCENZIO, Associated Press

NEW YORK (AP) — J.C. Penney is reporting a bigger-than-expected loss and plummeting profits in the first quarter as many of its customers are rejecting a new bold pricing strategy that puts an end to rampant discounting in favor of everyday low prices.

The department store chain says it lost $163 million, or 75 cents per share in the quarter ended April 28. That compares with a profit of $64 million, or 28 cents per share in the year-ago period. Revenue dropped 20 percent to $3.15 billion for the quarter.

Analysts had expected a penny loss on revenue of $3.45 billion.

Revenue at stores opened at least a year dropped 18.9 percent.

Separately, the company says it will be discontinuing its quarterly dividend of 20 cents per share.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.