(Filed Under Financial and General Interest News). J.C. Penney Co. Inc. reported a third-quarter net loss of $143 million due to costs attributed to moderate customer pullback, the discontinuation of its catalog business, overall company restructuring and management transition.
The $143 million net loss came to 67 cents per share for the three-month period ended Oct. 29. JCPenney reported a net income of $44 million, or 19 cents a share, in the third quarter of 2010. Sales fell 4.8 percent to $4 billion from $4.19 billion. E-commerce sales decreased 5.4 percent to $341 million and comparable store sales dropped 1.6 percent.
Results included $27 million in costs, or 10 cents a share, related to the company’s management changes, including the hiring of new C.E.O. Ron Johnson, a former Apple executive. Former C.E.O. and current executive chairman Mike Ullman stated, "While our more affluent customers continued to respond well to JCPenney’s attractions, the moderate customer continues to have limited discretionary spending capacity, and that was apparent during the quarter."
The company also announced the hiring of Michael Kramer as company chief operating officer. Kramer, formerly C.E.O. of Kellwood Co., will begin at JCPenney on Dec. 5.
JCPenney expects fourth-quarter earnings of 64 to 74 cents a share, or $1.05 to $1.15 excluding charges.
J.C. Penney Co. Inc. operates more than 1,100 department stores in the United States and Puerto Rico.
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