JC Penney outlook spooks Wall Street
J.C. Penney blamed weak clothing sales on bad spring weather and said it would offer more plus-size fashions to try to boost sales.
The company also cut its earnings outlook for the year and its stock tumbled 12 percent Thursday.
Penney said the cool weather hurt sales of its kids and women’s clothing. Sales of its men’s clothing, however, rose as it increased its big and tall selection.
During the first quarter, the company’s sales rose 0.2 percent at established stores, nowhere near the 2.1 percent growth analysts expected, according to FactSet.
Penney’s weak results come a day after rival Macy’s reported a strong first quarter as it increased its store label brands.
Penney reported a loss of $78 million, or 25 cents per share, for the three months ended April 5.