Shares of J.C. Penney Company Inc. (JCP) dropped 6.52% Tuesday afternoon as the department store chain reported same-store sales fell more than expected in the first quarter.

The Texas-based company reported a quarterly loss of $154 billion, or 48 cents per share.

“I am pleased with the strides we've made in setting key objectives, building our senior leadership team, executing significant changes in our assortment, such as eliminating major appliances, and mobilizing the entire organization around our priorities. We have made good progress on each of our immediate action steps highlighted last quarter, including our continued efforts to reduce and enhance our inventory position, which resulted in a 16 % reduction in our inventory and a meaningful improvement in our free cash flow this quarter. As our inventory rationalization effort continues, we are testing a number of strategies around optimal inventory levels and assortment choice counts with a goal of delivering an improved experience for our customers and maximizing our return on investment,” CEO Jill Soltau said Tuesday in a statement.

Earlier this year, the company stopped selling major appliances such as washing machines and refrigerators, which cut costs but also reduced sales.

Neil Saunders, a market analyst and managing director of GlobalData retail, said that the company will have to make changes quick if it wants to stay profitable in the tough consumer market.

"J.C. Penney is a very weak operator in one of the toughest sectors of a highly competitive retail market in an era of subdued demand from highly fickle consumers," he said.

Another major concern for J.C. Penney is President Trump's ongoing trade dispute with China, as tariffs could be slapped as high as 25 percent on Chinese imported goods. The company is reliant on Chinese suppliers to produce merchandise.

"We do anticipate a more meaningful impact on both our private and national brands if a potential fourth tranche of tariffs goes into effect," Soltau said. She also said that the company is working hard to reduce its dependency on Chinese-made goods.

Another major retailer, Kohl's (KSS), also reported a dismal first quarter Tuesday, as sales dropped by 3.4 percent for stores that were open at least a year. Shares of Kohl's were down roughly 8.46% in Tuesday afternoon trading.

Online shopping services, such as Amazon.com, are posing a threat to established retailers such as J.C. Penney and Kohl's.

RELATED STORIES