Just when you think things can't possibly get any worse for JC Penney, they do. Earlier in the week, the company reported a much larger than expected loss generating even more concerns about the fiscal health of the beleaguered department store. It's an issue JC Penney has been grappling with for quite some time
Here are some of the key concerns:
- Penney said its fourth-quarter net loss was $428 million, bringing its full-year loss to $985 million.
- Revenue decreased to $3.88 billion from $ 5.43 billion a year ago. Analysts had expected the company to report $4.08 billion in revenue.
- J.C. Penney's gross margin was 24 percent, which the company attributed to lower-than-expected sales and a higher level of clearance merchandise that was related to inventory reductions. That's down from 30 percent a year ago.