Shares in department store J C Penney Company Inc (NYSE:JCP) plunged in pre-market and nudged lower at the bell as it cut its sales forecast for the full year.
Revenues in the third quarter slipped 1.4% to US$2.86bn, missing forecasts for revenues of US$2.94bn, largely due to a weakness in its clothing business.
The net losses were narrowed however to US$67 million, or 22 cents a shares
The group also lowered its full-year guidance for comparable store sales, saying it expects them to increase between 1 and 2%.
Like many other such businessess, JC Penney is trying to keep up in a world of changing shopping patterns.
Consumers are shifting away from clothing and towards beauty treatments or furnishings. And when they do pick up clothing, it’s more often at off-price stores or online as Amazon moves more into apparel.
Its Sephora, Home, Salon and Fine Jewelry were highlighted as top performing divisions.
Chief executive Marvin Ellison noted the third quarter weakness but added: “We are excited about the initiatives we have in place to drive incremental growth during the holiday season with our increased appliance penetration, new Sephora locations, free same day pick up for online orders, a strong cadence of promotional events and our new lowest price guarantee.”
He said there were initiatives in place, which reinforce its confidence in the ability to achieve $1 billion in EBITDA for 2016.
Story by ProactiveInvestors