The market has not been kind to J.C. Penney, as the retailer’s Q1 statistics revealed many reasons for concern.
In pre-market trading on Friday, JCP fell $0.29 to as low as $4.78. Being the lowest their stock has reached in over three years, that news only marks the beginning of the brand’s unfortunate results from the past quarter.
Their most noticeable difference comes from their net loss. Rising dramatically from $69 million one year prior to $180 million, the increase represents almost a 38 percent ascension. This can also be shown as a rise from 22 cents to 58 cents per share comparatively.
The news was exacerbated with a 3.7 percent decrease in sales from $2.8 billion to $2.7 billion. Total operating costs also rose to $1.09 billion from $996 million one year prior.
J.C. Penney Chairman and Chief Executive Officer, Marvin R. Ellison, released a statement following the disappointing quarter outcome.
“We continue to make encouraging progress in the company’s competitive and financial position despite our top-line performance during the first quarter,” said Ellison. “While February was a very challenging month for J.C. Penney and broader retail, we are pleased with our comp store sales for the combined March and April period, which improved significantly versus February.”
The combination of low consumer traffic and net loss could prove to create even more problems for the company as shareholders await statistics from Q2. If the former is any indication, J.C. Penney’s 2017 may not yield the results they, or anyone else, wanted or expected.