Closing weak stores doesn’t solve all of a retailer’s problems. J.C. Penney Co. posted a wider quarterly loss, as liquidation sales at stores it closed during the period weighed on the company’s results.
Penney shares tumbled more than 15% in Friday morning trading as investors responded to weaker-than-expected profit margins.
Penney closed 127 stores in the latest quarter. Penney CEO Marvin Ellison said the retailer had never liquidated that many stores at one time, which made forecasting difficult. But he added: “We walked away from the liquidation event a stronger company.”
Penney said in February it would close as many as 140 of its roughly 1,000 stores, joining rivals such as Macy’s Inc….
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