JCPenney said it will sell 84 million shares of stock in a secondary offering.
Shares fell 5 percent following the news. (What's the stock doing now? Click here for the latest after-hours quote.)
The retailer said it would use the proceeds for general corporate purposes.
Penney shares fell 15 percent on Wednesday after Goldman Sachs said it expects the retailer's sales to improve more slowly than expected. The stock rebounded slightly Thursday.