JC Penney’s first-quarter net loss doubles as sales fall
The retailer has stopped selling appliances and furniture to focus on clothing, but is worried about Trump’s tarrifs on Chinese goods
Bengaluru/London — Same-store sales fell more than expected at JC Penney in the first quarter and its net loss nearly doubled after the retailer exited its appliance and in-store furniture businesses, sending shares down more than 9% on Tuesday. The 117-year-old department store chain, which earlier this year said it was ditching major appliances such as refrigerators and washing machines to focus on clothing, said the move cut comparable sales by 20 basis points. CEO Jill Soltau, on an earnings conference call, warned investors that Penney would likely take a further hit if US President Donald Trump imposed additional tariffs on another $300bn worth of imports from China. “We do anticipate a more meaningful impact on both our private and national brands if the potential fourth tranche of tariffs does go into effect.” Shares sank 9.6% to $1.04 in morning trading. Penney was the second biggest decliner among S&P 600 companies. Washington’s escalation of a 10-month trade war with Bei...
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