J. C. Penney Co.’s shares dropped by 25 percent early Friday after the retailer forecast deep losses for the third quarter.
Oct. 27 (UPI) — J. C. Penney Co.’s shares dropped by 25 percent early Friday after the retailer forecast deep losses for the third quarter.
Shares of the company’s stock, which closed at $3.66 Thursday afternoon, had tumbled to $2.76 by the opening bell Friday — its largest stock drop in more than three decades.
Shares recovered some Friday afternoon, but were still shy of the previous day’s close.
The company released a statement earlier Friday that warned it would undergo an inventory liquidation. That, combined with recent store closures, highlight the struggles of brick-and-motor stores amid rising e-commerce sales.
« We took the necessary steps to accelerate inventory liquidation primarily across all apparel divisions, which increases available funding to invest in new and trending merchandise categories, » J. C. Penney CEO Marvin Ellison said.
The retailer is expected to release its third-quarter earnings Nov. 10.
