Troubled department store J.C. Penney has made headlines recently, after activist investor William Ackman started a public spat with the retailer, and then resigned from the company’s board. The dispute began after Ackman was frustrated by how long the company was taking to appoint a new chief executive, as interim CEO Myron E. Ullman took over from former CEO Ron Johnson in April 2013.
With J.C. Penney scheduled to post results before the bell on Tuesday, analysts are expecting another disappointing quarter, with a ninth straight quarterly drop in sales.
“It’s probably going to be a repeat of everything they’ve been saying for the last three quarters,” said Peter P. Costa, president of Empire Executions, Inc., from the floor of the New York Stock Exchange. “It’s a company that’s struggling mightily. If you don’t have a brand identity, that’s where there’s going to be a major problem. I think them changing their brand identity twice in the last eight months doesn’t give people confidence in going shopping there.”
J.C. Penney Company Inc. (NYSE: JCP) is expected to report a second quarter loss of $1.15 per share on revenue of $2.8 billion, compared with a loss of 67 cents per share on revenue of $3.02 billion a year-ago.
On Monday, shares of J.C. Penney fell 1.34 percent to close at $13.22.