Monday, March 20, 2023
HomeretailJC Penney sales rebound, but investors flee

JC Penney sales rebound, but investors flee

J.C. Penney on Tuesday reported a modest rise in quarterly comparable sales but gave no details on its gross profit margin, leading Wall Street analysts to conclude the department store operator had to resort to bigger discounts during the holiday season.

Still, Penney said it had $2 billion in liquidity available at the end of the quarter, in line with its earlier forecasts, reassuring investors concerned about how much cash it was using up as it attempts to fix its business.

The company's shares, which closed at their lowest level in decades on Monday, dropped 10 percent Tuesday after rising earlier.

Penney's comparable sales—those online and at stores open at least a year—rose 2 percent during the fiscal fourth quarter. That was less than the 4 percent analysts were expecting, according to Thomson Reuters I/B/E/S.


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